ChatGPT’s found me some popular FTSE 100 shares to mull going into the New Year. But I think some would put me on the road to nowhere. So I’ve had to use my human brain to barrow down my search criteria and pick candidates in three different categories.
Looking for relatively safe blue-chips, pharmaceutical giant AstraZeneca (LSE: AZN) is one I’ll definitely look at. AstraZeneca has a forward price-to-earnings (P/E) ratio of 27, with the share price having soared 90% in the past five years. With a forecast dividend yield of just 1.7%, it might not look great value, but as defensive stocks go, it has to be a consideration.
With the latest update in November, CEO Pascal Soriot spoke of “an unprecedented 16 positive Phase III trials this year, with four since our previous results including high-impact readouts for baxdrostat in hypertension and Enhertu and Datroway in breast cancer.“
He also pointed to expansion in the US, with construction of the company’s new $4.5bn manufacturing facility in Virginia already commenced. These highlight the key strengths for me. AstraZeneca’s share valuation might be the biggest danger, especially if investors move away from safety in 2026. But its very strong pipeline and global market reach lead me to rate it a definite long-term consideration.
FTSE 100 growth
The FTSE 100 isn’t really home to many growth candidates, but Rio Tinto (LSE: RIO) enjoyed a bit of cyclical growth in the latter half of 2025. And with the share price up only 7% in five years, I see a good chance of more to come.
Global demand for metals has been strong. I can see solid demand for quite some time yet, especially if China gets back into top gear. Even with a slight slowdown predicted, GDP growth for the country is expected to come in between 4% and 5% this year. Most Western economies can only dream of that.
My main concern is if precious metal fever subsides — which it surely must, right? Rio does produce some gold and silver, and it could take a hit. But it’s a major supplier of copper, aluminium and iron. And it also unearths lithium, selenium, molybdenum and many more in demand by various high-tech industries. Add in a 4.8% forecast dividend yield, and Rio Tinto has to be one to consider for 2026.
Show me the cash
For FTSE 100 income, I like the 4.7% dividend yield on the cards for Prudential (LSE: PRU). That’s higher than we were used to from the Pru of old. And it comes even after the share price has gained nearly 50% in five years. It is however, worth noting that the share price is only about where it was back in 2018.
Maybe today’s higher valuation could weigh against the stock in the future. This is a cyclical business, after all — and a P/E of 14 might be a bit toppy for the sector.
But I reckon Prudential’s key strength lies in its Asian prospects. At Q3 time, CEO Anil Wadhwani praised the “particular focus on ASEAN markets where we see an opportunity to build on the agency new business profit growth achieved in the markets of Greater China.”
So I’m considering the Pru for my 2026 Stocks and Shares ISA.
