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Sage (LSE: SGE) and Bunzl (LSE: BNZL) are two large FTSE 100 stocks I think investors should consider increasing their holdings. This is why.
Sage shares fly high
Sage is a developer and distributor of cloud-based accounting software for small and medium-sized businesses. I personally own Sage shares and they have performed well for me to date.
As I write, Sage shares are trading at 964p. This time last year, they were trading at 742p, up 29% over a 12-month period. This is impressive considering many FTSE 100 stocks have struggled in recent months.
Sage’s story to date is an enviable one: it has become a dominant player in the market from humble beginnings. He has a consistent track record of performance and an excellent business model that includes recurring subscriptions to boost his healthy balance sheet.
With plenty of cash, Sage can reward investors. A 2% dividend yield is not the highest, but I am more interested in consistent and stable dividends. However, I understand that dividends are not guaranteed.
From a risk perspective, Sage shares are currently trading at all-time highs. I am aware that any negative trading or bad news could send the stock tumbling. Additionally, the artificial intelligence (ai) revolution has raised concerns that software products from technology companies like Sage may be outdated or behind the times.
The good news is that Sage already incorporates artificial intelligence tools into its offering. For that reason, I believe the business is poised for further growth by offering its customers the latest technology and staying up to date.
Overall, I think Sage stock is a great option to consider as part of a diversified stock portfolio.
Bunzl is one of the largest distribution and outsourcing companies in the world. With a presence in 30 countries, the company provides essential items, such as disposable paper and plastic packaging supplies, to various market sectors.
Bunzl’s share price journey is similar to that of many FTSE 100 stocks in recent months. stocks have gone up and down due to volatility. As I write, they are trading at 2,846p, which is very close to the 2,850p level they reached this time last year.
The company deals with macroeconomic issues. First, supply chain issues could hinder your ability to offer your customers the products they need. Next, soaring inflation and rising costs could be problematic for businesses, as rising costs tend to eat into profit margins.
However, there aren’t many FTSE 100 stocks that can boast growing payouts for 30 consecutive years. Bünzl can! A return of just over 2% today may seem modest, but I’m encouraged by its fantastic track record. However, I understand that past performance is no guarantee of the future.
Finally, I would say that Bunzl products offer enterprise defensive features. For example, it supplies rubber gloves to the medical industry and packaging to the food industry. The essential nature of its offering has helped the company perform consistently and generate plenty of cash to support its enviable investor return policy.
I think Bunzl stock seems like a great candidate for further investigation; They could even flourish further once the current volatility cools.
