Don’t panic! How I think you can Brexit-proof your shares portfolio with these FTSE 100 dividend stocks

If you’re worried about Brexit, then I think shopping for these FTSE 100 (INDEXFTSE: UKX) dividend stocks should be at the top of your list.

| 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.

We’re just over four months away from the moment when Article 50 clicks into action and drags the UK out of the European Union.

The situation over how, or even if, the country departs on that date remains as clear as mud. The civil war in the Conservative Party, its fragile alliance with the DUP, the possibility that EU members like Spain may try to veto May’s much-maligned deal with Brussels, all leave a variety of scenarios up for grabs from a no-deal exit to a second referendum being called.

One thing’s for sure: expect more volatility in the weeks and months ahead on the financial markets. And for some FTSE 100 stocks, from UK-focused banks like Lloyds to retailers such as Marks & Spencer, the long-term outlook remains less than robust as the possibility of a cataclysmic EU departure persists.

Medical marvel

But I think a share that’s unlikely to be moved, whichever way the UK deals with the Brexit problem, is AstraZeneca (LSE: AZN).

That’s not to say the medicines giant isn’t immune to any short-term hiccups and like its rivals, it has been stockpiling its products in case of any future supply disruptions into Britain. But this will likely be the beginning and end of its problems — Britons will still need their medicines, regardless of the economic consequences of summer 2016’s referendum, after all.

Anyway, AstraZeneca’s pan-global operations mean that conditions in its UK marketplace aren’t the be-all-and-end-all for the business. Indeed, with sales to emerging markets in particular surging (up 12% in the third quarter) and demand for its new medicines also booming (up 85% in the same period), I believe that the sales outlook is better than its been for many years.

Strike gold

If you’re looking to actively play the Brexit saga rather than avoid it, then I feel Randgold Resources (LSE: RRS) could be a great Footsie stock to buy today as well.

The gold digger’s share price continues to rise on the back of a robust gold price and it hit fresh nine-month highs late this week. As I noted last time I covered the Footsie stock, retail demand for precious metals remains strong at the moment and, added to this, purchases from central banks are also the largest that they’ve been for a very long time.

It could also be argued that, irrespective of how Brexit is finally resolved, having some exposure to gold via either the physical asset itself or by owning companies like Randgold is a good idea given the broad array of geopolitical and macroeconomic uncertainties currently swirling around, from concerns over rising interest rates in the US to slowing economic growth in the eurozone.

But I would much prefer to hold shares in Randgold than the physical metal because of its bumper dividend yields of 4.5% in 2018 and 5.8% in 2019. AstraZeneca is also a great choice for income chasers, in my opinion, in part due to its inflation-beating 3.5% yield through to the end of 2019. I consider both businesses as great shares to buy today and hang on to for long into the future, and not just on account of those bulging medium-term yields.

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.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended AstraZeneca and Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Bus waiting in front of the London Stock Exchange on a sunny day.
Investing Articles

If interest rate cuts are coming, I think these UK growth stocks could soar!

Falling interest could be great news for UK growth stocks, especially those that have been under the cosh recently. Paul…

Read more »

Investing Articles

Are these the best stocks to buy on the FTSE right now?

With the UK stock market on the way to hitting new highs, this Fool is considering which are the best…

Read more »

Petrochemical engineer working at night with digital tablet inside oil and gas refinery plant
Investing Articles

Can the Centrica dividend keep on growing?

Christopher Ruane considers some positive factors that might see continued growth in the Centrica dividend -- as well as some…

Read more »

Smiling family of four enjoying breakfast at sunrise while camping
Investing Articles

How I’d turn my £12,000 of savings into passive income of £1,275 a month

This Fool is considering a strategy that he believes can help him achieve a stable passive income stream with a…

Read more »

Person holding magnifying glass over important document, reading the small print
Investing Articles

2 top FTSE 250 investment trusts trading at attractive discounts!

This pair of discounted FTSE 250 trusts appear to be on sale right now. Here's why I'd scoop up their…

Read more »

Smiling young man sitting in cafe and checking messages, with his laptop in front of him.
Investing Articles

3 things that could push the Lloyds share price to 60p and beyond

The Lloyds share price has broken through 50p. Next step 60p? And then what? Here are some thoughts on what…

Read more »

Young female business analyst looking at a graph chart while working from home
Investing Articles

£1,000 in Rolls-Royce shares a year ago would be worth this much now

Rolls-Royce shares have posted one of the best stock market gains of the past 12 months. But what might the…

Read more »

Investing Articles

Are HSBC shares a FTSE bargain? Here’s what the charts say!

There are plenty of dirt-cheap FTSE 100 banking stocks for investors to choose from today. Our writer Royston Wild believes…

Read more »