The only FTSE 100 shares I own at the start of 2025

This writer currently owns 14 different FTSE 100 shares in his portfolio. Here’s a quick look at what they are and why he owns them.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

British flag, Big Ben, Houses of Parliament and British flag composition

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

As the name suggests, the FTSE 100 comprises 100 shares at any given time. Many UK investors will probably own at least a couple of them, if not all of them through a Footsie index tracker.

When Warhammer maker Games Workshop joined the FTSE 100 just before Christmas, it became the 14th Footsie name in my 41-stock portfolio. In no particular order, here are the other 13.

Dividends shares

One great strength of the UK’s blue-chip index is the dividend income on offer. It yields a very respectable 3.6%, but you don’t have to rummage too long to unearth dividend stocks yielding far higher than the average.

Should you invest £1,000 in Legal & General Ucits Etf Plc - L&g Cyber Security Ucits Etf right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Legal & General Ucits Etf Plc - L&g Cyber Security Ucits Etf made the list?

See the 6 stocks

My portfolio has four of these high-yielders in the shape of Legal & General, British American Tobacco, Aviva, and HSBC. Respectively, they yield 9.2%, 8.2%, 7.2%, and 6%.

Beyond the income potential, I like HSBC’s positioning in Asia, the world’s fastest-growing region. And I want my portfolio to have long-term exposure to the UK’s ageing population, which Aviva and Legal & General offer in spades. Meanwhile, British American Tobacco stock appears undervalued to me.

Naturally, dividends aren’t assured, and financial services stocks are exposed to the fluctuations of markets. British American Tobacco’s having to manage a decline in the number of smokers worldwide while building up its non-cigarette business (vapes, pouches, heated tobacco, etc).

Nevertheless, I think this little basket of FTSE 100 high-yielders offers my portfolio solid dividend prospects and decent diversification.

Growthier names

I also hold other dividend-paying stocks where, over time, I hope for a decent bit of share price growth on top. These include bottler Coca Cola HBC and Diageo, which yield 2.9% and 3.3% respectively.

Between them, they sell a number of timeless brands, including Coca-Cola, Sprite, Fanta, Johnnie Walker, Smirnoff, and Guinness.

I’d put 2.6%-yielding defence giant BAE Systems in this bucket too. As EU Commission president Ursula von der Leyen said in 2024: “The world is as dangerous as it has been for generations.”

BAE’s helping European countries re-arm in an age of rising external threats. While an unpredictable Donald Trump administration adds uncertainty, I think BAE will do well moving forward.

Two turnaround stocks I hold are JD Sports Fashion and Rolls-Royce. But the former has just tanked after Christmas profits underwhelmed, so the turnaround may take a while. I’ll remain patient.

Rounding out this category are diversified pharma giant AstraZeneca and plant hire firm Ashtead Group.

Investment trusts

Finally, I hold a pair of FTSE 100 investment trusts in my portfolio. One is Pershing Square Holdings, which offers exposure to Bill Ackman’s hedge fund. He has a tremendous record of beating the market.

The other is Scottish Mortgage Investment Trust (LSE: SMT). The fund invests in innovative firms with high growth potential, including Amazon, Nvidia, and Instagram owner Meta Platforms.

Created with Highcharts 11.4.3Scottish Mortgage Investment Trust Plc PriceZoom1M3M6MYTD1Y5Y10YALL14 Jan 202014 Jan 2025Zoom ▾Jul '20Jan '21Jul '21Jan '22Jul '22Jan '23Jul '23Jan '24Jul '24Jan '2520212021202220222023202320242024www.fool.co.uk

But Scottish Mortgage also gives exposure to exciting private companies that I can’t invest in myself. One is SpaceX, Elon Musk’s extraordinary rocket company whose valuation has swelled to $350bn. Its Starlink internet service now has over 4.6m subscribers.

Due to the trust’s sole focus on growth companies, it can underperform badly during bear markets. But the portfolio’s packed with innovators that I expect to be much larger in future, which should boost Scottish Mortgage’s value over time.

But there may be an even bigger investment opportunity that’s caught my eye:

Investing in AI: 3 Stocks with Huge Potential!

🤖 Are you fascinated by the potential of AI? 🤖

Imagine investing in cutting-edge technology just once, then watching as it evolves and grows, transforming industries and potentially even yielding substantial returns.

If the idea of being part of the AI revolution excites you, along with the prospect of significant potential gains on your initial investment…

Then you won't want to miss this special report inside Motley Fool Share Advisor – 'AI Front Runners: 3 Surprising Stocks Riding The AI Wave’!

And today, we're giving you exclusive access to ONE of these top AI stock picks, absolutely free!

Get your free AI stock pick

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.

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Ben McPoland has positions in Ashtead Group Plc, AstraZeneca Plc, Aviva Plc, BAE Systems, British American Tobacco P.l.c., Coca-Cola Hbc Ag, Diageo Plc, Games Workshop Group Plc, HSBC Holdings, JD Sports Fashion, Legal & General Group Plc, Pershing Square, Rolls-Royce Plc, and Scottish Mortgage Investment Trust Plc. The Motley Fool UK has recommended Amazon, Ashtead Group Plc, AstraZeneca Plc, BAE Systems, British American Tobacco P.l.c., Diageo Plc, Games Workshop Group Plc, HSBC Holdings, Meta Platforms, Nvidia, and Rolls-Royce 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.

More on Investing Articles

Investing Articles

At a 52-week low but forecast to rise 73%! Is this growth share the FTSE’s top recovery play? 

This FTSE 100 growth share has taken an absolute beating over the past two years but Harvey Jones says the…

Read more »

Investing Articles

This FTSE 250 share offers a juicy 9.8% yield. Will it last?

This well-known FTSE 250 share has a percentage dividend yield approaching double digits. Should Christopher Ruane add the income share…

Read more »

Investing Articles

Is a £333,000 portfolio enough to retire and live off passive income?

A third of a million pounds can generate a serious amount of passive income, but relying on this sum alone…

Read more »

The flag of the United States of America flying in front of the Capitol building
Investing For Beginners

Why FTSE 100 investors should pay attention to ‘Liberation Day’

Jon Smith explains why the upcoming tariff announcement from across the pond could have an impact on the FTSE 100,…

Read more »

Concept of two young professional men looking at a screen in a technological data centre
Investing Articles

Here’s why Nvidia stock fell 13% in March

The Nvidia stock price rise was looking unstoppable. Should investors now be wondering if the same might be true of…

Read more »

US Stock

It’s ISA deadline week! Here’s my 3-step game plan

Jon Smith tries to calm the hype around the last minute ISA rush to buy stocks and explains why he's…

Read more »

Snowing on Jubilee Gardens in London at dusk
Investing Articles

£10,000 invested in BAE Systems shares at Christmas is now worth…

BAE Systems shares have been surging in the FTSE 100 in 2025, driven higher by the wavering US commitment to…

Read more »

Investing Articles

Up 19% in 2 weeks, can the Tesla share price rebound further?

Tesla's first-quarter delivery numbers came out today. Will they help persuade our writer to invest his money at the current…

Read more »