The FTSE 100 index includes leading shares of many of the UK’s largest companies. That doesn’t necessarily mean that they are attractive investments, though. Long established companies can have poor growth prospects, for example. But it does indicate a certain size. Often, FTSE 100 companies are among the leaders in their respective fields of business. Looking for shares to buy today, here are three FTSE 100 companies I would consider adding to my portfolio.
Fast growing sports company
With the Euros and Wimbledon already receding into memory, the next major sports event due is the Olympics. That should help motivate a lot of people to bring their own sporting ambitions to life, no matter how modestly.
That should be good news for leading sports retailer JD Sports (LSE: JD). But even in the absence of set piece sporting spectacles, JD has a proven formula for growth. It has spread its wings internationally and boasts sizeable operations in key markets such as the US.
The investment case for JD is partly about its continued growth through expansion. But the basic business model is also highly attractive to me. The company has figured out how to appeal to a broad customer base, from fashion conscious youths to competitive athletes. While growth may slow, I continue to see strong growth potential for the JD Sports share price. But one risk I see is profit margin dilution. The costs of expanding into new, competitive markets can eat into overall profit margins.
Shares to buy today and hold
Another FTSE 100 share I would consider buying today is consumer goods giant Unilever (LSE: ULVR).
Looking back over the past couple of years, the company’s performance has been mixed. Last year, for example, revenue actually fell slightly. That is surprising for a company with a large hygiene portfolio that thrived in the pandemic. But it partly reflects weak sales in Unilever’s food service division. With eateries still locked down in many markets, I see that as an ongoing risk to the company’s revenues.
Perhaps because of such challenges, investor sentiment is mixed. The shares have added less than 1% in the past year. That’s why I include Unilever among my shares to buy today. The company has a wide range of brands which give it pricing power. That helps profit margins – and indeed, while revenue fell last year, the company was still able to increase post-tax profits. Those profits came in at €6.1bn, which helps support a dividend. The current yield is 3.4%. I consider Unilever as shares to buy today and hold, possibly forever.
Dividend champion
While I appreciate Unilever’s dividend, it doesn’t come anywhere near engineering firm Spirax-Sarco when it comes to a history of increasing payouts. Spirax-Sarco has raised its dividend annually for over half a century.
Underpinning the company’s long streak of higher payouts is a focussed business model. Its specialist engineering services are hard to replicate. Their mission critical nature means customers are willing to pay for them even when other spending gets cut.
Hopefully that will continue to serve shareholders well. Dividends are never guaranteed, though. One risk is that expectations are so high that any future change to the dividend policy could hurt the share price badly. For now, though, I rate Spirax-Sarco among FTSE 100 shares to buy today for my portfolio.
