2 FTSE 100 stalwarts I’d love to add to my Stocks and Shares ISA

This Fool wants to add more to his Stocks and Shares ISA and he has his eye on these Footsie heavyweights. Here, he breaks down why.

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I’ve promised myself that I’ll make more use of my Stocks and Shares ISA this year. Last year I neglected it. But given the tax-free gains on offer, I won’t be doing the same this year.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

So far, I’ve made good ground. With momentum on my side, I’m looking to add some brilliant companies to my ISA in July.

Here are two stocks I reckon look like solid buying opportunities. If I had the cash, I’d buy them today.

Unilever

I want to add more defensive stocks to my portfolio and one that stands out is Unilever (LSE: ULVR). I recently opened a position in the consumer goods giant. It had been on my buy list for some time. I had some spare cash last month and decided to take the plunge.

The stock has been gaining ground this year and I wanted a piece of the action. Year to date, it’s up 14.5%.

Even with that rise, it’s trading on 20.2 times earnings. That’s above the Footsie average. But for a company of Unilever’s stature, I’m fine with paying a premium. What’s more, compared to its historical average, that actually looks cheap.

Its defensive nature means it can bring stability to my portfolio in uncertain times, like the one we’re currently facing. Come rain or shine, there will be demand for the products it sells.

Of course, its goods do come at a premium. And that means there’s the threat that consumers opt for cheaper goods from its competition.

But Unilever’s brand recognition gives it an advantage. It’s also got a new management team in place that’s putting emphasis on creating a more efficient business.

The stock has a healthy 3.4% dividend yield. Its payout hasn’t been cut for over 50 years.

GSK

I’m also keeping my eye on GSK (LSE: GSK). The stock hasn’t posted as strong a performance as its peer so far in 2024. This year it’s up 3.7%.

In all fairness, a large chunk of the gains it had made were wiped out when its share price nosedived by over 10% last month. That came after a Delaware judge ruled in favour of more than 70,000 lawsuits related to Zantac and its link to causing cancer to go forward.

GSK has been fighting this for a few years now. Speaking on the news, the business has said it will appeal and that there is “no consistent or reliable evidence” to suggest a cancer risk.

It’s struggled to recover since the steep decline, falling a further 4.5%. With that, I think its shares now look like good value. They trade on 14.1 times earnings and 10.3 times forecast earnings.  

Of course, GSK could end up facing huge liabilities from the litigation. And the persistent threat of legal action is a risk when investing in pharmaceutical stocks.

But I’m bullish on GSK for the long run. Like Unilever, I’m a fan of the stability it provides. Where it has faced scrutiny for its weak pipeline in the past few years, this now seems to be changing as management focuses on growing it. It has 90 products in its R&D pipeline.

Like Unilever, there’s also the chance to make passive income with its 3.8% yield.

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.

Charlie Keough has positions in Unilever Plc. The Motley Fool UK has recommended GSK and Unilever 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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