We have news on a few FTSE 100 shares coming our way in May. There’s not much reporting going on in the month, but what little there is includes what I think may be three of the best to buy right now.
Not dead yet
First up is Imperial Brands (LSE: IMB), which is set to post results for the first half on 16 May.
The share price had recovered a bit in the past two years after a bit of a slump. But it’s dipped again in 2023. That could be a new chance to buy.
A growing decline in the use of tobacco has to be by far the biggest risk for the long term.
But it’s been a cash cow stock so far. In fact, we could be on for a 7.4% dividend yield this year, which is a big one.
Talking of cash, Imperial Brands is busy buying back its own shares. The latest £500m tranche started in early April.
What should we look for in the results? The firm says it’s all going in line with expectations, so I doubt we’ll have any surprises. I’d like to see more progress on new generation tobacco products though.
Top dividend
FY results from National Grid (LSE: NG.) should be here on 18 May.
The main fear is that the decline of gas could make a dent in profits. It’s a real risk, but there’s another side.
You know the old saying, that what you lose on the gas you gain on the electric. Well, National Grid looks like its ahead of the game. It’s already around 70% focused on electricity distribution.
So what might the results bring? The City expects a dividend yield of around 4.5%. And I think we’ll see something very close to that.
In a pre-close update, the board said it expects underlying earnings per share (EPS) growth of 6-8% per year over a five-year period. But this year should be towards the lower end of the range.
We should also see a broadly neutral cash position, so I don’t see any threat to the dividend. In fact, I rate it as one of the FTSE 100’s most dependable.
Work in progress
For those first two, it’s very much business as usual. But Aviva (LSE: AV.) is still a work in progress this year, as it continues with its plans for change.
We’ll get some news of how that’s going with a trading update on 24 May.
Aviva is also buying back its own shares at the moment, having started in March. It was announced with FY22 results, and will return up to £300m to shareholders that way.
The firm paid a 31p dividend too, which is a yield of 7.4% on the current share price.
Aviva says its outlook is postive, and it expects to deliver “low-to-mid single digit growth” in dividend cash in the coming years.
So any news of cash flow, and cash return prospects, will be welcome.
It’s still a tough year though. And we haven’t seen the full inflation effect yet.
