3 FTSE 100 Shares I’d Buy If I Won Euromillions: Royal Dutch Shell Plc, Legal & General Group Plc And Compass Group plc

If I had £100m to spend on shares, I’d want solid companies that I could rely on for the long term. Royal Dutch Shell Plc (LON:RDSB), Legal & General Group Plc (LON:LGEN) and Compass Group plc (LON:CPG) all fit the bill.

| 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.

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.

Royal Dutch Shell

Shares in Royal Dutch Shell (LSE: RDSB) (NYSE: RDS-B.US) dropped back this week as the company announced a disappointing quarterly update. Shell reported a 23% decline in income attributable to shareholders. Profits were hampered by a rise in exploration costs and large-scale theft in Nigeria.

However, Shell still managed to report a 5% increase in its dividend to shareholders.

It is this resilience that has made Shell one of the most reliable stores of wealth available on the stock market today. While the last six months may have been disappointing, Shell has demonstrated its ability to come through adversity many times.

The expectation is for Shell to pay $1.85 of dividends for 2013. That’s a 5.3% yield.

Legal & General

Shares in Legal & General (LSE: LGEN) are up 35% so far in 2013, putting the insurance giant among the top quintile of FTSE performers.

The company’s mix of business is well placed to benefit from strong stock markets. Strong share price returns generally leads to an improved appetite for long-term investment products. Unlike a straight fund management business, L&G can thrive even in difficult markets.

This is demonstrated by the company’s five-year track record. Unlike most other financials, Legal & General continued to pay a dividend throughout the crisis. It is forecast to make £914m of net profit for the year, a record for the company.

Today, L&G shares trade near an all-time high. The company announces it half-year results tomorrow.

Compass Group

Compass Group (LSE: CPG) is a great example of how successful an apparently boring company can be. First known as a catering supplier, Compass also provides outsourced facilities management services, i.e. janitorial and security.

Its long-term contracts with blue-chip clients bring a high degree of visibility to its cashflows and profits. Investors love this and have rewarded Compass with a premium rating.

I also expect that the company could be a significant beneficiary from G4S’ recent stumble.

Compass shares trade on 19.3 times forecast profits for 2013 and come with an expected yield of 2.6%.

For more long-term blue-chip investment ideas, get the latest Motley Fool report “5 Shares To Retire On”. This contains the expert analysis of our in-house research team. Even better, their report is available totally free. Just click here to get your copy today.

> David does not own shares in any of the companies mentioned.

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.

More on Investing Articles

Investing Articles

3 of my top FTSE 250 stocks to consider buying before April

Buying undervalued UK shares can be a great way to generate long-term wealth. Here, Royston Wild reveals a handful on…

Read more »

Ice cube tray filled with ice cubes and three loose ice cubes against dark wood.
Investing Articles

Just released: our 3 top income-focused stocks to buy before April [PREMIUM PICKS]

Our goal here is to highlight some of our past recommendations that we think are of particular interest today, due…

Read more »

Investing Articles

Is this the best chance to buy cheap FTSE 100 shares in a generation?

I want to buy shares when they're cheap, and sell... never, just keep taking the dividends. And the FTSE 100…

Read more »

Man putting his card into an ATM machine while his son sits in a stroller beside him.
Investing Articles

Could NatWest shares be 2024’s number one buy for passive income?

For those of us looking to earn some long-term passive income, how does NatWest's 7% dividend yield sound? It sounds…

Read more »

Investing Articles

£12K in savings? Here’s how I could turn that into £13K annual passive income

This Fool explains how investing a lump sum can help her build a passive income stream to enjoy in her…

Read more »

Aerial shot showing an aircraft shadow flying over an idyllic beach
Investing Articles

Here’s why Rolls-Royce shares are now set to fly over the £4 mark

Once again, Rolls-Royce shares are crushing the FTSE 100. Should I add to my holding of this stock at the…

Read more »

Investing Articles

1 under the radar FTSE 100 AI stock investors should consider buying

Our writer explains why this FTSE 100 pick could be a shrewd investment with its established experience of using AI…

Read more »

Investing Articles

Does the beaten-down Diageo share price make it a no-brainer buy?

Harvey Jones spent years waiting for the Diageo share price to look like good value, before finally buying it in…

Read more »