We have some exciting news to share! The Motley Fool UK has now become an independent, UK-owned company, led by our long-serving UK management team — Mark Rogers, Chris Nials and Heather Adlington. In practical terms, it’s the same team you know, now fully focused on serving our UK readers and members.

Just as importantly, our approach remains unchanged: long-term, jargon-free, and on your side. We’ll be introducing a new name and brand over the coming weeks — we're very excited to share it with you and embark on this new chapter together!

3 FTSE 100 stocks I’m considering for growth, value AND dividends!

The FTSE 100 is home to stacks of quality stocks. Here are three that offer a tasty combination of growth, passive income and value.

| More on:

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.

Man smiling and working on laptop

Image source: Getty images

The FTSE 100 is a great place to find stocks, whatever your investing strategy. Whether you’re seeking growth or value for capital gains, or high dividend yields for passive income, UK blue-chip shares could give you what you want.

But here’s the thing: some top FTSE 100 shares offer a brilliant blend of growth, income, and value for money. Severn Trent (LSE:SVT), HSBC (LSE:HSBA) and Legal & General (LSE:LGEN) are three such stocks I’m considering for my own ISA and think others could too. Read on to find out more.

All-round value

Utilities stocks aren’t famed for their explosive growth potential. But Severn Trent provides this in spades, its long-term £15bn investment programme rapidly expanding its asset base and ability to raise profits.

Is this reflected in the company’s valuation? I think not — its forward price-to-earnings growth (PEG) ratio sits just inside value territory of 1 and below, at 0.9. City analysts expect earnings to surge 18% this financial year.

With Severn Trent’s dividend yield at 4.2% it offers plenty of bang for your buck, in my view.

What I also like is that the water supplier’s operations are highly defensive, providing strong earnings visibility. Remember that rising interest rates could push borrowing costs higher, though.

Another top bargain?

HSBC is enjoying brilliant momentum as its emerging markets rapidly grow. Analysts have been steadily raising their earnings and share price forecasts following the bank’s forecast-beating Q4 performance. I think this could continue.

Right now earnings are tipped to rise 12% in 2026. It reflects the strong performance of the bank’s ongoing restructuring programme, along with its huge structural opportunities in Asia. RBC analysts, for instance, note that “Asian wealth is a key growth area for HSBC which should continue to grow other income over the medium term.”

HSBC’s forward PEG ratio is also an ultra-low 0.4. And its dividend yield for 2026 is 4.6%, beating the 3% average for FTSE 100 stocks. Asia’s traditional banks like this are facing increasing competitive threats. Yet this remains a top blue-chip to consider.

FTSE-leading dividend yield

Legal & General is one of the FTSE 100’s best-priced dividend stocks, in my view. Its forward price-to-earnings (P/E) ratio is 8.7 times, while its PEG is 0.9. Meanwhile, the dividend yield for this year is the index’s highest, at 8.8%.

Low earnings multiples and sky-high yields are sometimes a red flag for investors. It can often be a sign of a company in difficulties, or that a dividend cut could be imminent. Is this a category Legal & General shares fall into?

I believe not. Firstly, the company is highly cash generative and has a large capital pile. Its Solvency II capital ratio remains an enormous 210%, underpinning current dividend projections. It also has significant growth levers to pull, as an ageing global population drives financial products demand.

Legal & General’s earnings are tipped to rise 10% in 2026. I’m optimistic about these forecasts, though the fallout of the Iran War creates some uncertainty.

HSBC Holdings is an advertising partner of Motley Fool Money. Royston Wild has positions in HSBC Holdings and Legal & General Group Plc. The Motley Fool UK has recommended HSBC Holdings. 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

Two mid adult women enjoying a friends reunion city break for the weekend in Newcastle upon Tyne, England.
Investing Articles

This FTSE 250 stock fell by over 3% after solid earnings. Should investors consider buying it?

Trainline’s share price fell this morning, even after publishing solid results for FY26. Should investors consider scooping up some of…

Read more »

Road trip. Father and son travelling together by car
Investing Articles

£10,007 invested in Aston Martin shares on 1 April is now worth…

Aston Martin shares have suddenly started moving upwards, going from 36p to 46p. Is this FTSE 250 stock ready to…

Read more »

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

Why NOW could be the best time to find stocks to buy!

I'm looking for more stocks to buy for my ISA and SIPPs. But it's possible some shares could be better…

Read more »

Trader on video call from his home office
Investing Articles

£1,000 buys 297 shares in this beaten-down UK housebuilder with a £700m opportunity

Shares in UK builders have crashed recently. But is the stock market focusing on short-term challenges and missing a massive…

Read more »

Man thinking about artificial intelligence investing algorithms
Investing Articles

Are Aviva shares being held back by an overblown AI threat?

Andrew Mackie explores Aviva shares, self-driving car risks, and whether the market is underestimating long-term earnings and dividend strength.

Read more »

Affectionate Asian senior mother and daughter using smartphone together at home, smiling joyfully
Investing Articles

£50 put into Nvidia stock at the start of 2015 is now worth…

Nvidia stock has changed the lives of many investors. Muhammad Cheema looks at how a mere £50 put into it…

Read more »

Playful senior couple in aprons dancing and smiling while preparing healthy dinner at home
Investing Articles

How these 2 shares in a Stocks and Shares ISA could deliver life-changing passive income

Mark Hartley explores the growth potential of two lower-yielding income opportunities that many Stocks and Shares ISA investors may overlook.

Read more »

Tanker coming in to dock in calm waters and a clear sunset
Investing Articles

BP shares: still treated as an oil bet — but that may be outdated

Andrew Mackie looks past today’s sharp fall in BP shares to question whether the market is still mispricing its earnings…

Read more »