£5k to invest? I’d pop these 5 stocks into a FTSE 100 starter portfolio

Looking to build a balanced FTSE 100 (INDEXFTSE:UKX) portfolio? This is where Harvey Jones would begin.

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.

If investing in individual stocks and shares, you need to spread your money around. Invest in a spread of different companies, operating in different sectors, so if one struggles, others may compensate.

The old adage never put all your eggs in one basket applies. I think the following five FTSE 100 companies could all make attractive long-term buy and holds. Just make sure they balance any existing holdings you have.


Insurance giant Aviva (LSE: AV) may seem a surprise pick, as its share price has underperformed in recent years. However, that means you can buy it at a bargain 6.9 times forecast earnings, against 17 times for the FTSE 100 as a whole. Today makes a tempting entry point, as the share price may rise nicely when investors tune back into the stock.

The Aviva share prices trades 6% lower than it did three years ago, even though profits have nearly doubled and dividends have jumped 44% in that time. It now offers a fabulous forecast yield of 7.7%, covered 1.9 times by earnings. Aviva could be ripe for a rebound.


Pharmaceutical giant GlaxoSmithKline (LSE: GSK) has held its prized dividend at 80p a year for years, as it focuses its resources on rebuilding its drug pipeline. Some investors have shunned the £87bn company as a result, yet it still offers a steady forecast yield of 4.5%, roughly in line with the FTSE 100 average, covered 1.5 times by earnings.

The Glaxo share price is now showing signs of life, up almost 20% over the last year. Short-term swings don’t matter that much; you should invest in Glaxo for the longer run. Buy, hold, reinvest your dividends and reap the rewards.


Spirits giant Diageo (LSE: DGE) is an old favourite of mine. Investors are having a party right now, with the Diageo share price up 17% this year, and 75% over five years.

While there are signs of people drinking less, Diageo has caught the spirit of the times by encouraging them to drink better, by purchasing its premium brands instead. The £74bn group trades at a premium valuation of 23.9 times forward earnings, with a relatively low yield of 2.2%, covered 1.9 times. Then again, it usually does. The higher price has been worth paying.


International sales, marketing, and support services group DCC (LSE: DCC) has seen its share price double in five years, and is maintaining its momentum this year.

Management recently forecast another year of profit growth and development, and with four divisions covering liquified petroleum gas (LPG), retail & oil, technology, and healthcare, it has plenty of diversification. Recent share price growth is reflected in a slightly pricey forward valuation of 17.8 times earnings, but not that pricey. The DCC share price could be Brexit proof, too.

BHP Group

I’m throwing in a stock from the mining sector, as this gives you exposure to global growth. BHP Group (LSE: BHP) is my pick, because this £87bn group has massive diversification across copper, silver, lead, zinc, uranium, gold, iron ore, coal, and even petroleum.

The complicating factor is the US-China trade war, as China is by far the biggest source of global demand for commodities. BHP Group is cheaper as a result, trading at 11.8 times forward earnings, while the forecast yield is a bright and bouncy 6.2%.

If those don’t tempt you, try these…

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.

Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended GlaxoSmithKline. The Motley Fool UK has recommended Diageo. 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

Could the 9.8% M&G dividend yield get even bigger?

Christopher Ruane reckons that, although the M&G dividend yield is already close to a double-digit percentage, it could get better…

Read more »

Investing Articles

How much passive income could I earn by putting £380 a month into a Stocks and Shares ISA?

Christopher Ruane explains how he'd aim to turn a Stocks and Shares ISA into four-figure passive income streams each year.

Read more »

Investor looking at stock graph on a tablet with their finger hovering over the Buy button
Investing Articles

2 passive income stocks I’m buying before an interest rate cut

With the market expecting interest rates to fall in August, time might be running out for investors looking to buy…

Read more »

Investing Articles

If I’d bought Rolls-Royce shares a year ago, here’s what I’d have now

Rolls-Royce shares have been the big FTSE 100 success story of the past 12 months and more. And there's still…

Read more »

Young female analyst working at her desk in the office
Investing Articles

If the Dow’s heading for 60,000 by 2030, can the FTSE 100 index hit 12,000?

Strategist Ed Yardeni predicts a 50% rise for America’s Dow Jones Industrial Average over six years. Can the FTSE 100…

Read more »

Investing Articles

Is the National Grid share price a once-in-a-decade opportunity?

The National Grid share price looks like a bargain. But there’s much more for investors to think about than a…

Read more »

Investing Articles

Here’s why the Rolls-Royce share price should keep gaining!

The Rolls-Royce share price is up 185% over the past 12 months, but there are a host of tailwinds that…

Read more »

Mature Caucasian woman sat at a table with coffee and laptop while making notes on paper
Investing Articles

Buying 1,852 shares in this ultra-high yield FTSE 100 income stock would give me £1k a year

Harvey Jones is keen to load up on this blue-chip income stock that pays the highest yield on the FTSE…

Read more »