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3 FTSE 100 stocks I’d buy with £10k in a Stocks and Shares ISA right now

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If you are looking for high-quality blue-chip stocks to add to your Stocks and Shares ISA, then I highly recommend taking a closer look at Unilever (LSE: ULVR). One of the largest consumer goods companies in the world, this is one of my favourite businesses listed in London.

The owner of products such as Ben & Jerry’s ice cream and Dove beauty lines has an impressive track record of earnings growth. I expect this to continue as the business expands its presence in emerging markets.

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Emerging markets now make up for more than half of group sales. As the population in these parts the world continues to grow in size and wealth, Unilever’s sales should continue to expand.

On top of this, management has been streamlining the business in recent years to help improve profit margins. The company has also started to return additional cash to investors with share buybacks. Following these efficiency efforts, Unilever’s operating profit margin has risen to around 25%, up from 15% in 2016.

At the time of writing, investors can buy shares in this global consumer goods giant for just 21.6 times forward earnings. I think this multiple is suitable considering the group’s global presence and fat profit margins. The stock also supports a dividend yield of 3.1%.

Leading management team

Another FTSE 100 income champion that is on my radar is Next (LSE: NXT). There are only a couple of retail businesses I think are well-positioned to weather the current carnage on the high street and Next is one of them. It’s not the firm’s products that excite me, it’s the management.

During the past five years, the board has successfully executed a plan to transition the business away from its high street stores towards e-commerce, and this is paying off. Next’s most recent trading update showed a 12.6% increase in online sales during the first half of 2019, while in-store purchases declined by 5.5%. Total group sales increased by 3.7%, thanks to that strong performance from its digital-based business.

Going forward, the retailer is spending an additional £300m to boost online capacity and is opening up its facilities to other brands. As these investments progress, I’m convinced Next’s earnings will only grow further. At the time of writing, investors can buy shares in this leading retail concern for just 13 times forward earnings. It also supports a dividend yield of 2.9%.

Family business

My final FTSE 100 pick for a Stocks and Shares ISA is wealth management group Schroders (LSE: SDR). Once again, this is an investment in a high-quality management team.

Schroders’ management has always taken a long term view with the business and isn’t afraid to spend money today in the hopes of boosting revenues in the future.

Efforts to future-proof the business have helped it grow earnings per share at a compound annual rate of 9% for the past five. And as earnings have grown, so has the dividend.

Over the past six years, the company’s dividend per share has increased at a compound annual rate of 15%, and the stock currently supports a dividend yield of 4%. After recent declines, the stock is trading at a forward P/E a 14.7 which, in my opinion, is a steal considering the quality of the management and Schroders’ growth track record.

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Rupert Hargreaves owns shares in Unilever, Next and Schroders. The Motley Fool UK owns shares of and has recommended Unilever. 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.

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