2 brilliant FTSE 100 stocks for investors to consider buying in July!
2 brilliant FTSE 100 stocks for investors to consider buying in July!
Who doesn’t love FTSE 100 stocks? They offer investors cracking opportunities to purchase high-quality household names and build long-term wealth. That suits my investment strategy down to a tee.
Here are two that have especially caught my eye. I think investors should consider buying them this month.
A homebuilder
The first of my two picks is homebuilder Taylor Wimpey (LSE: TW.). Despite rising 39.1% in the last 12 months, the stock hasn’t performed great so far this year. During the first half of 2024, it lost 1.4% of its value.
Clearly, the stock missed out on the Footsie rally. But I’m not going to complain. I now see good value in Taylor Wimpey.
Its stagnating share price has pushed up its dividend yield. The stock now has the 10th-highest payout on the index at 6.7%. Its dividend experienced a healthy rise last year to 9.58p per share, up nearly 2% from the year prior.
What’s more, after a tough couple of years, there are positive signs starting to emerge from the housing market. Firstly, interest rate cuts seem like they’re getting ever closer. With inflation for May falling to the 2% target, that’ll help. Lower rates will revive people’s appetites for taking out a mortgage and drive demand for Taylor Wimpey.
Looking more long term, it’s no secret that the UK has a major housing shortage. And building more homes has been a major point of discussion in the upcoming election. That’s another reason I’m bullish on the firm.
That said, a delay in rate cuts would harm its share price. In the short term, I suspect the stock may continue to struggle. We’re not out of the woods yet with inflation and a rise over the next few months could see investors turn their backs on Taylor Wimpey.
But as a long-term play, I like the look of its shares. I reckon July could be a smart time to consider getting in and buying the homebuilder.
A supermarket giant
I’ve also had industry giant Tesco (LSE: TSCO) on my watchlist for a while. July could be a shrewd time to consider buying its shares too, in my opinion.
The share price has had a better start to the year than its Footsie counterpart. It’s up 5.1% during that time and 24.8% over the last year.
But trading at 12.6 times earnings, I still think Tesco shares look like value for money. I also like the company due to its incredibly strong brand recognition and dominant market position.
That said, competition is a threat. Aldi and Lidl continue to take the industry by storm and have become even more popular during the cost-of-living crisis due to their budget prices. That’s something to watch.
Yet despite these threats, Tesco has found a way to retain its position at the top. I suspect its smart schemes such as its Clubcard programme, which now has around 20m users, that has kept it there.
There’s also the chance to make some extra cash on the side with its 3.9% yield. That’s above the Footsie average. If I had the cash, I’d snap up both stocks this month.
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Charlie Keough has no position in any of the shares mentioned. The Motley Fool UK has recommended Tesco Plc. 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.