2 FTSE 100 shares I’d buy to target market-beating wealth by 2054!

Looking for top FTSE 100 dividend shares to buy? Here are two our writer Royston Wild would buy today and look to hold for the next 30 years.

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London’s FTSE 100 index has been delivering powerful returns since it started up in the mid-1980s. Even accounting for periods of extreme volatility, the blue-chip index has generated an average annual return of around 7.5%.

With a regular investment, this sort of yearly return can create life-changing wealth over the long term. If this trend were to continue, a £400 investment each month in Footsie shares would make me a magnificent £538,978 over 30 years.

But what about if I want to build a bigger retirement fund than this? One option would be to buy high-dividend FTSE 100 stocks. By reinvesting any payouts I receive, I can potentially supercharge my wealth through the mathematical miracle of compounding.

Two top stocks

With this in mind, here are two blue-chip dividend stocks I’m hoping to buy when I next have cash to invest.

CompanyForward dividend yieldAnnual dividend growth
Airtel Africa 4.9% 9%
Aviva 8.2% 5%

The forward dividend yield on both of these companies smashes the 3.9% average for FTSE shares. And what’s more, they’re tipped to grow shareholder payouts through the current three-year forecast period.

There’s more to successful investing that just buying stocks with big dividend yields. And that’s not just because dividends are never, ever guaranteed. It’s also because the benefit of big dividends can be offset by a fall in a company’s share price.

However, I believe the following companies could be an excellent source of dividends and capital gains in the years ahead. Here’s why.

Airtel Africa

Currency problems in its Nigerian marketplace have sapped sales growth at Airtel Africa (LSE:AAF) more recently. At constant currencies, revenues rose 21% in the three months to December. But on a reported basis, sales dropped 8.3% following the devaluation of Nigeria’s naira.

The telecoms titan’s share price has tanked as a result. But as a long-term investor, I think this represents an attractive dip buying opportunity.

Airtel Africa has tremendous growth potential. This is thanks to rapid population growth and soaring income levels across its 14 markets. This brilliant blend meant its customer base rocketed another 9% over the course of 2023 to top 150m.

I expect the FTSE firm to get back to delivering mighty profits growth once its currency issues decline.

Aviva

Life insurance giant Aviva (LSE:AV.) has also endured a turbulent start to 2024. As a consequence, it offers a healthy mix of huge dividend yields and low price-to-earnings (P/E) ratios.

At 9.8 times, Aviva’s earnings multiple sits below the blue-chip average of 11 times. With it also offering that 8%+ dividend yield, I’m hoping to add to my existing holdings in the business very soon.

Financial services companies like this face continued trading troubles as consumers tighten their pursestrings. But the long-term outlook for this specific business remains robust. As a major provider of retirement and wealth products, it’s well placed to capitalise on Britain’s steadily growing elderly populace.

I also think Aviva shares could be a shrewd buy today as takeover activity in London heats up. Speculation over a possible bid from a foreign rival first emerged late last year.

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 positions in Aviva Plc. The Motley Fool UK has recommended Airtel Africa Plc. 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.

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