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I have a number of FTSE 100 Stocks are piling up on my watch list and I can’t wait to add them to my portfolio. The problem is that my resources are limited and I can only buy so many at any given time.
But here are two high-dividend stocks you’d buy today if you had the cash.
I wish I could buy these FTSE 100 shares
I can’t track all shares in the FTSE 100 and I haven’t paid the insurer admiral group (LSE: ADM) a lot of attention for years. Its 7.3% performance just caught my eye and I wonder if it deserves more attention.
Its share price has risen since mid-October along with the rest of the FTSE 100, but measured over a year it is down 29.84%. Over the same period, the index fell just 3.2%.
Admiral’s share price plunged on a big drop in pre-tax profit for the first half of last year, down 48% to £251.3m. I was not alone. rivals included Direct line They were also hit by claims inflation, as auto repair costs and mechanics’ wages rose amid post-pandemic labor shortages.
However, last year’s numbers also worsened due to the Covid benchmarks, as claims costs fell with fewer motorists on the road during the lockdown.
Inflation remains a problem and auto insurance is a competitive market where average premium income per customer has been declining. However, these challenges are reflected in Admiral’s undervaluation of 11.1 times earnings. The yield is expected to drop to 6% next year on a thin 1.1 hedge, but I’d still buy it today if I had the cash.
I would buy these high dividend stocks too
I like to buy cheap FTSE 100 companies with generous returns and here’s another one, fund manager M&G (LSE: MNG). The savings and investment company is both an asset manager for wholesale and institutional clients and a retail savings specialist for private investors.
broke away from Prudential in October 2019 and its share price has rallied steadily since the March 2020 Covid market sell-off, which occurred shortly after its launch.
M&G’s share price is up a healthy 19.15% in three months and 5.11% in a year. That sounds pretty solid to me, given the turbulent time the markets have been through lately. It is worth noting that another FTSE 100 fund manager, schrodersit is trading 20% below what it was a year ago.
I can see why investors might be interested in holding a stock that is yielding 9.1%, like M&G is doing today. It has plenty of excess capital and has a strong solvency ratio of 235%, while broker Jefferies recently noted that “Its free cash flow yield of 15-17% during 2023-25 should uphold M&G’s track record of delivering best-in-class returns on capital”.
M&G is at the beginning of what I hope will be a long and successful journey, and I would have bought it sooner if I had the cash. Hopefully soon I will.
