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 Scottish Mortgage 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 Scottish Mortgage 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 are other promising opportunities in the stock market right now. In fact, here are:

5 stocks for trying to build wealth after 50

The cost of living crisis shows no signs of slowing… the conflict in the Middle East and Ukraine shows no sign of resolution, while the global economy could be teetering on the brink of recession.

Whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times. Yet despite the stock market’s recent gains, we think many shares still trade at a discount to their true value.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. We believe these stocks could be a great fit for any well-diversified portfolio with the goal of building wealth in your 50’s.

Claim your free copy now

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

Hand flipping wooden cubes for change wording" Panic " to " Calm".
Dividend Shares

2 ‘safe’ LSE dividend stocks to consider as global markets sell off

As global markets experience high levels of volatility due to economic uncertainty, investors are piling into these ‘safe-haven’ dividend stocks.

Read more »

Investing Articles

US stock market rout: an unmissable opportunity for investors?

His tech-heavy portfolio has been smashed by Trump’s tariffs. However, Dr James Fox believes there could be some opportunities in…

Read more »

Investing Articles

After a 13% ‘Trump tariff’ fall, is the Barclays share price too cheap to miss?

Does the Barclays share price fall mean we should all panic and run screaming from the stock market? Nah, of…

Read more »

Mature Caucasian woman sat at a table with coffee and laptop while making notes on paper
Investing Articles

2 investment trusts to consider for a Stocks and Shares ISA

These two investment trusts have a different focus -- but our writer sees both as worth considering, one more for…

Read more »

Investing Articles

Deutsche Bank reiterates Buy rating on 9.6% yielding FTSE 250 stock that was “most shorted in UK”

Our writer investigates why a major broker remains optimistic about a FTSE 250 stock that was once the most shorted…

Read more »

Investing Articles

2 things to remember when stock markets are turbulent

US trade policy has rattled the stock markets in New York, London and elsewhere. Our writer outlines a couple of…

Read more »

Investing Articles

Are Trump’s tariffs a once-in-a-lifetime chance for ISA investors to get rich?

The £20,000 Stocks and Shares ISA limit will reset on 6 April. Smart investors could use current market volatility to…

Read more »

Investing Articles

Here are the latest Persimmon share price and dividend forecasts

Our writer looks at the latest forecasts for the Persimmon share price and considers what level of dividend the stock…

Read more »