It’s October and the end of the year is looming — after all, the Christmas TV ads have started already. Yet this doesn’t mean that there won’t be any more opportunities to take advantage of in 2021. As I look ahead to another busy week, here are the top FTSE 100 stocks that I’ll be keeping an eye on.
Dividends and property data
A few large FTSE 100 stocks will go ex-dividend on Thursday. These include Taylor Wimpey and Kingfisher. What this means is that if I’m interested, I need to buy the stock and be a registered shareholder before the ex-dividend date. This will allow me to then receive the dividend payment in the near future.
For income investors like me, it may be attractive to buy shares in Taylor Wimpey. The current dividend yield sits at 5.31%, well above the FTSE 100 average. With the UK housing market booming at the moment, the company will likely be able to generate strong cash flow to support future dividend payments.
When referring to the property market, I also want to keep an eye on the Halifax House Price Index data for September. This will be released on Thursday. The index is a good indication of how prices are holding up around the country. This will be important for shares linked to property. Clearly, Taylor Wimpey is a top FTSE 100 stock to watch out for. Also, property marketplace Rightmove is a company I’ll be keeping an eye on.
Oil price reaction
With the oil price rallying to $80 per bbl last week, oil-related companies performed very well. For example, Royal Dutch Shell shares were up 8% in the week, making it one of the best performers in the index. Glencore and BP also saw strong gains.
I definitely expect further volatility in these top FTSE 100 stocks this week depending on the move in oil. After a large gain, the move could continue to accelerate higher. Some Wall Street banks are forecasting a further jump to $90 by the end of the year.
On the other hand, we could see a correction, with oil prices moving lower. Regardless of what happens, these are the kind of companies that will be impacted, so I need to watch what happens.
Looking to buy cheap FTSE 100 stocks
In terms of buying opportunities, the main stock I’m looking out for this week is Royal Mail. The company had a tough time last week, down 13%. It was the worst performer in the entire index.
I wrote about a few reasons for this fall last week. And I think the slump could continue in the days ahead. I’m interested in Royal Mail shares, which are still up 70% over one year, so I’m waiting for a larger pullback before buying. If we see another 10%-15% move lower this week, I could consider buying.
