6.6% and 3.9% yields! 2 FTSE 100 stocks I’d snap up for juicy returns

On the hunt for consistent and growing dividends, our writer earmarks these two FTSE 100 stalwarts that could help her achieve that.

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Two rock-solid FTSE 100 stocks I believe can offer good returns for me and my holdings are GSK (LSE: GSK) and Taylor Wimpey (LSE: TW.).

Here’s why I’d love to buy some shares when I next have some cash to invest.

GSK

As one of the leading names in pharmaceuticals, GSK offers excellent defensive traits, in my view. This is due to the cutting-edge pharma it produces with medicines and treatments to help the world heal from various ailments.

Last month, a judge in Delaware voted in favour of over 70,000 lawsuits to go ahead against the company. This related to GSK’s Zantac drug and its potential links to causing cancer. Although GSK denies any evidence to suggest a risk of cancer, the chance of major fines and reputational damage is a risk I’ll keep an eye on.

From a bullish view, and given the defensive aspects mentioned, I think there’s a lot to like about the business.

To start with, the shares currently trade on a price-to-earnings ratio of 14. It’s also set to go lower, based on forecasts. However, I do understand that forecasts don’t always come to fruition.

Next, GSK shares offer a dividend yield of 3.9%, which is broadly in line with the FTSE 100 average. I can see this dividend growing in the future too, based on the firm’s reputation, experience, and future pipeline. It is worth mentioning that dividends are never guaranteed.

Overall, an established name in the market, an enticing valuation, passive income opportunity, and what looks like a solid R&D pipeline with over 90 products to come, help me make an investment decision today.

Taylor Wimpey

House builders haven’t had a great time of things in the past 12-18 months, due to economic volatility. Higher inflation, interest rates, and a cost-of-living crisis have hurt earnings and sentiment.

Inflation levels are now down, and rumours of a potential interest rate cut could spell good news. A potential housing boom could be on the horizon. However, economic issues are one of the biggest risks for Taylor Wimpey, and something that could dent earnings and returns. For example, higher costs could mean tighter margins and profit levels. I’ll keep an eye on this.

If a housing boom is coming, Taylor Wimpey is primed to benefit. At present, the shares look attractive to me.

Taylor is one of the largest developers in the UK. It possesses a wide presence, as well as plenty of experience and a solid track record. This could serve it well as there is a housing crisis in the UK. With demand outstripping supply, there is an opportunity for the firm to capitalise, and grow earnings and performance.

Finally, the fundamentals look good to me too. Taylor possesses a healthy balance sheet, which can help stave off economic turbulence, as well as support growth. Plus, the shares offer a dividend yield of 6.6% and trade on a P/E ratio of just 14.

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.

Sumayya Mansoor has no position in any of the shares mentioned. The Motley Fool UK has recommended GSK. 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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