3 More of The Steadiest Shares That You Can Buy Today: GlaxoSmithKline plc, Reckitt Benckiser Group Plc And SABMiller plc

GlaxoSmithKline plc (LON:GSK), Reckitt Benckiser Group Plc (LON:RB) and SABMiller plc (LON:SAB) are three of the most solid FTSE 100 companies that you can buy shares in.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

GlaxoSmithKline

Pharmaceuticals giant GlaxoSmithKline (LSE: GSK)(NYSE: GSK.US) sells products that its customers cannot live without. This brings a high degree of visibility to its earnings and profits. Even better, it is difficult for competitors to enter such a highly regulated industry. The result is large and reliable profits and dividends.

Glaxo has been increasing its dividend payout year-on-year for more than a decade. Last year, Glaxo paid 74p of dividends, equal to a 4.4% dividend yield at today’s price.

Earnings and dividend growth is forecast for this year and next. That puts the shares on a prospective P/E for 2014 of 13.2, with an expected yield of 4.9%.

While that may not sound cheap, a company of Glaxo’s quality rarely is.

SABMiller

Super-brewer SABMiller (LSE: SAB)(NASDAQOTH: SBMRY.US) is the company behind Grolsch, Peroni, Pilsner Urquell and the eponymous Miller Genuine Draft. In recent times, the company has been making great progress in its biggest market, Latin America. Growth in Africa (ex-South Africa) has also been considerable.

In the last five years, dividends from SAB have increased from $0.58 per share to $1.01 last year. There have been no cuts to the payout in that time. The shares have responded well to this success and are 170% ahead over the period.

Analysts expect SAB to deliver two years of strong dividend and earnings growth. That puts the shares on a P/E of 17.1 for 2015, with an anticipated yield of 2.5%.

Reckitt Benckiser Group

Reckitt Benckiser Group (LSE: RB) is probably the FTSE 100’s best example of a brand-led business. The company sells leading brand domestic products such as Calgon, Harpic and Nurofen. The company spends heavily on advertising these products. This makes it harder for any other firm to bring out a rival. Thanks to its quality products and marketing, RB makes big sales. This brings considerable economies of scale.

In the last five years, RB has increased its earnings per share and dividend per share ever year. The average rate of earnings increase in that time is 16.3%. Dividend growth has been even higher at an average of 19.3% a year.

Growth is expected to be less in future. The shares today trade on a 2013 P/E of 16.9.

If you are looking for solid shares, get the latest Motley Fool report “5 Shares To Retire On” . This detailed research from our team of expert analysts is entirely free and will be delivered to your inbox immediately. Just click here to start reading now.

> David does not own shares in any of the above companies. The Motley Fool has recommended shares in GlaxoSmithKline.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

More on Investing Articles

Midnight is celebrated along the River Thames in London with a spectacular and colourful firework display.
Investing Articles

Nvidia shares hit a new high after record earnings. Is there a lot more to come?

Nvidia stock smashes expectations, as quarterly profit soars 600%. It's time for a 10-for-one stock split too, as it reaches…

Read more »

Abstract 3d arrows with rocket
Investing Articles

Scottish Mortgage shares rise following FY update! Time to buy?

Scottish Mortgage (LON:SMT) shares were closing in on 900p today after a positive full-year report from the giant FTSE 100…

Read more »

British Isles on nautical map
Investing For Beginners

It’s time! Here’s my FTSE 100 hit list for the general election

Jon Smith outlines the potential reaction for the FTSE 100 from the upcoming general election and the main stocks he's…

Read more »

Investing Articles

National Grid reveals £7bn rights issue and the share price plunges – should I invest now?

The National Grid share price has dropped almost 10% and a dividend cut is looming, but it may be a…

Read more »

Young mixed-race woman jumping for joy in a park with confetti falling around her
Investing Articles

Nvidia stock is becoming more affordable!

Nvidia stock is up 2,500% over five years, but the chip giant’s share split -- announced during its earnings report…

Read more »

Investing Articles

Are Rolls-Royce shares good for passive income?

Our writer is getting mixed messages about the Rolls-Royce dividend. But whatever happens, he thinks passive income hunters will be…

Read more »

Investing Articles

Could the Rolls-Royce share price end 2024 above £5?

As the Rolls-Royce share price continues its remarkable run, our writer considers where it might be at the end of…

Read more »

Investing Articles

UK stocks are hitting all-time highs! Yet these 2 still look cheap to me

The FTSE 100's on a roll. But it's still possible to pick bargain UK stocks, provided we know where to…

Read more »