The Motley Fool

My top FTSE 100 stock buys for an instant starter portfolio

Image source: Getty Images

It’s quite normal for investors new to the game to head for the FTSE 100 first. I know I did. In fact, one of my first investments was in an FTSE 100 index tracker fund. And it did well for me for the several months I held it. 

But since then, I’ve regularly invested in the shares of individual companies. And if I wanted an instant starter portfolio now, I’d go for these top FTSE 100 stock buys. I think both the following shares are offering decent-looking value right now.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

This FTSE 100 stock serves the attractive FMCG sector

Smurfit Kappa (LSE: SKG) operates as a paper-based packaging solutions provider. And, as such, it serves the supply chain feeding the attractive Fast-Moving Consumer Goods (FMCG) sector.

The company issued a positive trading update at the beginning of November declaring that trading for the nine months to 30 September had been ahead of the directors’ expectations. And statements like that are music to the ears of most shareholders.

One feature in the firm’s five-year financial record is the strong and rising cash flow. And I see that as a mark of a business well equipped to keep shareholder dividends flowing and rising over time. Indeed, I reckon the enterprise has defensive qualities and growth potential.

The shares change hands near 3,164p, as I write. And, at that level, the forward-looking dividend yield for 2021 is about 3.2%. I’d buy some of the shares now with a holding period of at least five years in mind.

A green energy firm with a modest valuation

Energy company SSE (LSE: SSE) strikes me as operating in the right place at the right time. And, on 26 November, the firm updated the market about its 50:50 joint venture with Equinor to build the Dogger Bank wind farm. The two companies plan to proceed with the first two phases of the project. And SSE said, once all three phases are complete, the Dogger Bank wind farm will be the largest in the world.” 

The development is the biggest of SSE renewable energy projects in construction. The company is also “leading” the construction of the Seagreen offshore wind farm, which will be Scotland’s largest on completion. On top of that, SSE owns the Viking wind farm, which it describes as “the UK’s most productive onshore wind farm.”  

Meanwhile, SSE’s valuation remains modest. And with the share price near 1,381p, the forward-looking dividend yield for the trading year to March 2022 is around 6%. I’d buy some of the shares today and hold them for the long haul.

Diversification

These two aren’t the only stocks I’m keen on in the FTSE 100. And if I was starting up my portfolio from scratch, I’d aim to invest in at least five carefully-chosen stocks to achieve basic diversification. Or, I might buy these two and invest in an FTSE 100 tracker fund as well.

I also like these five stocks.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic…

And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.

Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…

You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.

That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away.

Click here to claim your free copy of this special investing report now!

Kevin Godbold has no position in any share mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

Our 6 'Best Buys Now' Shares

The renowned analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply enter your email address below to discover how you can take advantage of this.

I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.