There are lots of great FTSE dividend shares trading at bargain prices right now, but I cannot afford to buy them all. But two stocks have battled their way to the top of my watchlist for 2023. Once I have cash to spare, I will swoop.

The last five years have been bumpy for the FTSE 100 so I am impressed to see how well Anglo American (LSE: AAL) has performed. While the index as a whole trades just 2.2% higher in that time, this diversified miner is up a thumping 142%. It is even up 17.71% in the last 12 troubled months.

Hunting for dividend shares

Despite this, the share price looks dirt-cheap, trading at just 5.6 times earnings. It currently yields a bumper 7.1%, covered 2.5 times by earnings. As ever, there is no guarantee it will continue at that level. Forecasts suggest it could fall to around 5%, but that still looks attractive to me.

Mining stocks have benefited from this year’s surge in commodity prices, while being dogged by fears that Chinese Covid lockdowns and a global recession may hit demand. This could go either way in 2023, but I am investing with a 10- or 20-year view.

With that in mind, today’s low valuation looks like an attractive entry point. As an added bonus, its De Beers diamond unit has been performing strongly.

Anglo American comes with risk attached, as does every stock, yet I feel the outlook is promising, once we see the back of the recession. Electrification and the shift to renewables will boost demand for copper. I will reinvest my dividends to buy more stock until we have lift off.

I would balance this by investing in FTSE 100 paper packaging products group DS Smith (LSE: SMDS), which in contrast has struggled. Its share price is down 38.74% measured over five years, and 17.28% over the last year.

The rise of e-commerce has boosted demand for its corrugated packing but rising raw material and energy prices have driven up input costs. EPS have fallen in three of the last five years.

I like this solid income stock

Management suspended the dividend during the pandemic but it returned in 2021, and currently offers a solid 4.9% yield, covered twice. DS Smith looks good value following its recent share price troubles, trading at 10 times earnings. I am encouraged to see it is expected to report at least £400m of underlying operating profit in Thursday’s half-year results.

DS Smith has pricing power in a tough market, something not every company can boast right now. It generates plenty of cash which should hopefully sustain future dividend growth in 2023 and for years after that. On the other hand, the cost-of-living crisis could hit demand as consumers feel the squeeze.

The £4.25bn group has benefited from the falling pound, as it generates 85% of its sales overseas. However, sterling is now on the up and that could turn into a headwind. Yet I would still buy DS Smith, encouraged by its strong balance sheet. Net debt is just £1.5bn, down from £1.8bn last year. That is a comfort as interest rates rise.

The post 2 top FTSE dividend shares I’d buy for regular income in 2023 appeared first on The Twelfth Magpie.

More reading

• How much is needed in an ISA to unlock £1,220 of passive income a year?
• Forget meal deals! Here’s how £8 a day could be worth £357,000
• With a 7% yield, is this dividend share a no-brainer?
• The CMC Markets share price is smashing the FTSE 100 in 2026. Is there an opportunity here?
• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?

Harvey Jones doesn't hold any of the shares mentioned in this article. The Motley Fool UK has recommended DS Smith. 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.

I’m hunting for dividend income, and there are so many FTSE 100 stocks to buy offering sky-high yields that I’m getting a little dizzy.

I’ve just taken a gamble and bought housebuilder Persimmon, which at the time was yielding almost 20% a year. Not only that, it was trading at just five times earnings.

It still felt like a risky move, given that house prices are starting to fall as interest rates rise. Yet I’m betting that the shortage of property supply should sustain demand. Also, mortgage rates may not rise as much as we expected just a couple of weeks ago.

Top income stocks to buy

Persimmon’s dividend cover is thin at 1.1% but even if management does cut its shareholder payout, it should still be pretty substantial.

At the other end of the risk spectrum, I think it is nearly always a good time to buy shares in National Grid. This is one of the most solid income stocks on the FTSE 100, supported by its regulated earnings, while exposure to North-Eastern US energy market gives it a bit of buzz.

The 5.3% yield is only covered 1.2 times but this is less of an issue with utilities, as their earnings are more secure so they can pay out more of them. National Grid’s shares are valued at 15.6 times earnings, pretty much in line with the long-term average.

Supermarket chain Sainsbury’s has just reported a 29% drop in first-half profits to £376m as grocery prices rocket and consumer incomes plunge. However, last week’s results got a positive reception, as group revenues rose 4.4%.

I expect Sainsbury’s to continue struggling, as the cost-of-living crisis drags on and German discounters Aldi and Lidl continue to grab market share. Yet I am relatively confident about its dividend. This is now the main reason to hold the stock, and management will be reluctant to cut it.

I’m hoping that won’t be necessary, anyway, as its attractive 6% yield is covered 1.9 times by earnings. Trading at just 8.6 times earnings, many of the challenges Sainsbury’s face are in the share price.

Dividend investors spoilt for choice

Aviva’s shares have finally come alive after years of going sideways, bouncing 12% in 12 months. It’s the dividend that matters here, though, and the stock currently yields a whopping 8.8%, nicely covered 1.5 times by earnings.

The Aviva share price doesn’t exactly look expensive, either, trading at 7.5 times earnings. It is not the most dynamic stock on the FTSE 100, but I would still want it as a cornerstone of my portfolio. Today’s entry price looks attractive to me.

Finally, I’d like to add a commodity stock to my list of stocks to buy for sustainable income, and I’m plumping for Anglo American. The mining sector has picked up in recent days, as hopes grow that China is finally easing its Covid lockdowns. 

The upcoming global recession could squeeze demand for metals and minerals. Yet I’m not too worried, given that Anglo American’s 8.4% yield is covered 2.5 times, and the stock is valued at a dirt-cheap 4.8 times earnings. Anglo American is well worth its place on my list of best FTSE 100 dividend income stocks to buy today.

The post 5 stocks to buy for high and rising dividend income appeared first on The Twelfth Magpie.

More reading

• How much is needed in an ISA to unlock £1,220 of passive income a year?
• Forget meal deals! Here’s how £8 a day could be worth £357,000
• With a 7% yield, is this dividend share a no-brainer?
• The CMC Markets share price is smashing the FTSE 100 in 2026. Is there an opportunity here?
• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?

Harvey Jones holds shares in Persimmon. The Motley Fool UK has recommended Sainsbury's. 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.

The UK is in a pickle but that isn’t going to stop me from buying cheap shares. In fact, I see it as a good time to do so.

The FTSE 100 has dropped below 7,000, after the Bank of England’s battles to prevent a pension fund meltdown and another sterling collapse. It trades at 6,913 as I write this, a drop of 7.89% year-to-date.

It has fared better than the US S&P 500, which is down a brutal 24.49% this year. The FTSE 100 is full of solid, undervalued dividend stocks in sectors like banking, utilities, mining, consumer staples and energy. By contrast, the S&P 500 is packed with overvalued growth stocks that are struggling as sentiment plummets.

I’m looking for cheap shares now

Yet the FTSE 100 has dropped far enough to offer me real value. Some of my favourite shares are available at astonishingly low valuations, as measured by the price/earnings ratio.

Anglo American is trading at 4.2 times earnings and yields a staggering 9.54%. That offsets most of this year’s inflation surge. Like any stock, it is not without its risks. The slowing Chinese economy is hitting demand for raw materials. Given today’s dirt-cheap valuation, that is a risk I’m happy to take.

I’m also tempted by housebuilder Barratt Developments, which is valued at a meagre 4.1 times earnings and yields an amazing 10.8%. Again, there’s a reason why this share is cheap.

UK interest rates look set to rise sharply and this will drive up mortgage costs, forcing some owners to sell as they can’t manage repayments. House prices are likely to fall to match the new reality of higher borrowing costs. 

Pharmaceutical giant GSK, formerly GlaxoSmithKline, looks tempting too. Currently, it’s valued at just 11.99 times earnings while its yield has rocketed to 7.12%.

GSK even enjoyed a share price boost this week after its whooping cough vaccine was approved for use in pregnant women in the US. Yet it also faces a specific risk, with a potential $5bn litigation cost for stomach acid treatment Zantac, which may elevate cancer risk. This may not be resolved for several years, weighing on the share price.

FTSE 100 shares at tempting prices

These are big businesses with solid core operations that are astonishingly cheap. That makes me tempted to buy them (although I’ll need to explore GSK’s Zantac issue further).

2022 has been a tough year for markets and the UK now looks set to fall into recession, which could last for all of 2023. Despite all the problems, that won’t stop me from buying shares today for two reasons.

First, wider stock market movements are impossible to predict, so I don’t even try. Second, because I’m investing for a minimum of 15 to 20 years. Over such a lengthy period, any shares I buy today have plenty of time to recover.

The sooner I buy cheap shares like these, the sooner I can start reinvesting their dividends to purchase more stock. By the time the recovery comes, my holdings will be bigger, and with luck I will reap the rewards.

The post Today’s financial crisis is the perfect moment to buy cheap shares appeared first on The Twelfth Magpie.

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• How much is needed in an ISA to unlock £1,220 of passive income a year?
• Forget meal deals! Here’s how £8 a day could be worth £357,000
• With a 7% yield, is this dividend share a no-brainer?
• The CMC Markets share price is smashing the FTSE 100 in 2026. Is there an opportunity here?
• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?

Harvey Jones doesn't hold any of the shares mentioned in this article. The Motley Fool UK has recommended GSK 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.

The State Pension isn’t enough to secure a fun-packed retirement, and I’ll supplement mine by building a passive income from shares.

My chosen way of doing this is to invest in dividend-paying FTSE 100 stocks, as they offer some of the most generous shareholder payouts in the world. Today, the index yields a steady income of 3.93% a year. That should rise over time, as companies listed on the index look to increase their dividends as profits rise.

This is how I’m building passive income

Some FTSE 100 stocks would give me a far higher passive income than that. Mining giant Anglo American currently yields 9.07% a year, while insurer Aviva offers income of 8.73% and Barratt Developments yields 8.81%. All three are dividend aristocrats, and I haven’t even got past the Bs.

The FTSE 100 is fertile ground for investors like me, who want the highest possible passive income in retirement.

These yields are not guaranteed though. As we saw in the financial crisis and again during the Covid pandemic, companies can cut them in times of trouble. Yet management will only do that in extremis, because investors don’t like it.

Let’s say I invested in a spread of FTSE 100 stocks, so I bagged that average yield of 3.93% (even though I reckon I could do better).

Now assume I wanted to generate £1,000 a month of passive income, which adds up to £12,000 a year. To achieve that, I would need to build an investment portfolio of £305,344. So that’s the capital target I have to aim for.

Of course, if I drew my passive income from a pool of FTSE 100 offering higher yields, I could generate the same passive income from a smaller portfolio. If my stock picks yielded on average 6% a year, I could generate £1,000 a month from a portfolio of just £200,000.

I think that target is achievable, even for newbie investors. Take someone who is 35 today, and plans to retire at 68. They still have 33 years to build the portfolio they need.

Tax-free inside a Stocks and Shares ISA

If they invested £200 a month in a Stocks and Shares ISA, and their investments grew by 7% a year, on average, they would have £305,421 by age 68. That’s enough to generate a decent passive income, entirely free of tax.

This highlights the importance of investing as early as possible. The first £1 invested is the most important, because it has longest to compound and grow. Naturally, there is no guarantee that my portfolio would grow at an average rate of 7% a year, although that is roughly what the FTSE 100 has delivered over the decades.

On the other hand, it could grow at an even faster rate, giving me an even larger pool of money to generate my passive income. Even if I don’t hit that target, I will still enjoy a more comfortable retirement then if I relied solely on the State Pension.

The post Here’s how much I’d need to invest to earn passive income of £1,000 a month appeared first on The Twelfth Magpie.

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• Forget meal deals! Here’s how £8 a day could be worth £357,000
• With a 7% yield, is this dividend share a no-brainer?
• The CMC Markets share price is smashing the FTSE 100 in 2026. Is there an opportunity here?
• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?

Harvey Jones doesn't hold any of the shares mentioned in this article. 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.

At The Motley Fool, we like to ‘buy the dip’ whenever we can. That means picking up shares after the stock market has fallen, to gain exposure at a lower valuation than just a few days earlier.

We see it as the same principle as going shopping in the sales for, say, clothes or tech, or whatever. Who doesn’t like bagging a bargain? Yet many newbie investors looking to buy shares don’t view it like that. Some get nervous when the stock market dips, in case it heralds further trouble ahead.

I’d buy the dip after last week’s setback

Sometimes they will be right. The stock market may dip, then dip again. Nobody knows for sure what it will do next. However, I have learned that if I keep hanging on and on for the next dip, I never buy shares.

At some point, I have to take the plunge. Timing the stock market is impossible. But when I buy the dip, I am taking advantage of a move that has already happened, rather than second guessing where it goes next.

Stock markets suffered a minor setback last week. The US S&P 500 ended the week 5.15% lower. The FTSE 100 closed just 1.56% down on the week, with the FTSE 250 slipping 2.05%. That’s not a crash, just a little dip. Yet it has thrown up opportunities.

Some individual stocks have fallen by larger amounts. For example, InterContinental Hotels Group and Dechra Pharmaceuticals fell by 4.67% and 4.47% respectively on Friday. Neither are high on my shopping list, though. I’ll pass on these but others may be tempted.

I also like to take advantage of extended share price dips. For example, BT Group is down 11.49% over the last month. Fund manager Schroders has fallen 10.41%. In both cases, this is just the latest stage in a long-term share price decline. 

The two stocks look cheap, trading at P/Es of 6.95 and 10.56 times earnings, respectively. I am sorely tempted by BT, but would need to take a closer look at Schroders. I would never buy a stock solely because it is cheaper.

Two falling stocks I would happily buy

Insurer Aviva has experienced a much smaller drop of 4.02% over the last month. I would consider that dip worth buying because the FTSE 100 insurer has been on my watch list for some time.

The recent Anglo American dip really tempts me. The mining giant has fallen 7.82% over the last week, as global recession fears grow. Yet its long-term share price trajectory is positive, as it has grown 106.79% over five years.

The stock looks dirt cheap, trading at just 4.5 times earnings and yielding 8.99% a year. I need to do further research, but this looks like the type of dip I could happily buy.

The post I’d buy the dip in share prices as there are bargains to be had right now appeared first on The Twelfth Magpie.

More reading

• How much is needed in an ISA to unlock £1,220 of passive income a year?
• Forget meal deals! Here’s how £8 a day could be worth £357,000
• With a 7% yield, is this dividend share a no-brainer?
• The CMC Markets share price is smashing the FTSE 100 in 2026. Is there an opportunity here?
• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?

Harvey Jones doesn't hold any of the shares mentioned in this article. 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.

I reckon now is a great time to go shopping for dividend-paying shares to pop inside a tax-free Stocks and Shares ISA. Some might think that’s odd, given the uncertainty affecting global markets, but I don’t see it that way.

I would never buy a stock that I did not intend to hold for a minimum of five years, and ideally several decades.

Over such a lengthy timespan, today’s troubles will be forgotten (as most stock market dips soon are). With luck, these stocks should still be paying me generous dividends.

I’d load up my Stocks and Shares ISA today

FTSE 100 firms Anglo American (LSE: AAL) and Taylor Wimpey (LSE: TW) both yield around 7.35%, and are available at dirt-cheap valuations.

High dividends like these can ring alarm bells, as they may indicate underlying problems at the company. I don’t think this applies with these two. Their revenues look solid to me.

Earlier this year, Anglo American announced a record $2.1bn final dividend. This boosted shareholder returns to an impressive $6.2bn for 2021, as higher commodity prices delivered record profits.

The forecast yield for this year is 7.5%. This looks sustainable given that it is covered 2.2 times by anticipated earnings.

The Anglo American share price is up 15% over 12 months, helped by strong rough diamond sales at its De Beers operation, particularly in the US. As China reopens, this should boost demand for iron ore and coal, too.

The obvious threat is that the world falls into recession, as central bankers tighten monetary policy to curb inflation. That would hit commodity demand and prices. However, today’s low valuation of just 5.5 times earnings suggests I would not be overpaying if I popped Anglo American inside my Stocks and Shares ISA today.

I think housebuilder Taylor Wimpey would fit snugly beside it. The obvious risk with buying stocks in this sector is that rising interest rates will bring the era of rampant UK house price growth to a sudden end.

House price growth will almost certainly slow as mortgage rates rise (and a good thing too), but I do not anticipate a crash.

FTSE 100 income stocks tempt me

Most existing homeowners are protected by fixed-rate deals, at least for a year or two. Buyers still face intense competition, due to housing shortages.

In April, Taylor Wimpey delivered an optimistic update, announcing that it was trading in line with full-year expectations. Sales were “strong” and cancellation rates “flat”. Its order book now totals almost £3bn.

Another risk is that the UK slumps into stagflation, and the group’s labour and material costs rise faster than house prices. Management is working hard to keep costs down, and remains focused on delivering “enhanced shareholder returns”.

The Taylor Wimpey share price has delivered little in the way of growth for a decade, so the attraction here is the dividend. The forecast payout is now 7.8%, comfortably covered 2.1 times by earnings.

Today’s low valuation of 6.5 times earnings completes the argument for me. I would buy this inside my Stocks and Shares ISA, too.

The post I’d buy these 2 FTSE firms yielding 7.5% in a Stocks and Shares ISA today appeared first on The Twelfth Magpie.

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• £10,000 in these 3 FTSE 250 stocks could generate £982 of passive income over the next 12 months!
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Harvey Jones doesn't hold any of the shares mentioned in this article. 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.

Investors bought Ocado anticipating strong growth tomorrow, rather than profits and dividends today. Yet their enthusiasm has faded, with the Ocado share price down 53% over 12 months. It’s now one of the worst-performing FTSE 100 shares, rather than the best.

There’s no dividend and most years Ocado makes a loss rather than a profit, and now investors are fretting over when those profits will arrive.

I’d buy one of these FTSE 100 shares

UK supermarket rivals are catching up in online fulfilment, and Amazon remains a constant threat. Inflation is also squeezing grocery market profitability. The UK government’s mooted online sales tax wouldn’t help either. 

Most FTSE 100 shares face a list of challenges, but Ocado’s are mounting. It still boasts cutting edge pureplay technology. Bumps in the road were supposed to be expected, but it looks too risky for me to buy right now.

Mining giant Anglo American (LSE: AAL) thrashed most FTSE 100 shares over the last five years. It came in second place with a total return of 283%. The last year has been strong too, as it returned another 16.3%.

Like all commodity giants, this £43.37bn stock is benefiting from today’s soaring raw material prices. However, its share price slumped last week when it reported a 10% drop in first-quarter output. It blamed Covid-related staff absences, high rainfall in South Africa and Brazil, and problems at its metallurgical coal and iron ore operations.

I reckon this could also be a buying opportunity, with the stock trading at just 7.8 times earnings. It also offers a juicy 6.6% yield. 

The strict Chinese Covid lockdown could hit demand and prices, as we’ve seen with the falling copper price. Yet Anglo American remains one of my favourite FTSE 100 shares, and I’m sorely tempted by today’s low valuation.

A company with pricing power

Real estate investment trust Segro (LSE: SGRO) doesn’t always get the limelight. Yet it’s the third-best performer among FTSE 100 shares measured over five years. It delivered a total return of 223% and continues to race along, up 37.9% over the last 12 months.

Segro owns, manages and develops modern warehousing and light industrial property, and recently reported a strong first quarter. Total new headline rents signed during the period jumped to £25m, up from £18m last year,

Supply chain and inflationary pressures could hamper its construction plans and drive up costs. Yet management reckons it can pass this to customers in higher rents. Today’s yield may look low at 1.79% but board recently hiked its full-year dividend by 10%. Further progression seems likely. The downside is that the stock is expensive, at 41.8 times earnings. That’s the price investors pay for buying market-beating FTSE 100 shares like this one.

I wouldn’t buy Ocado, but I would place Segro on my watchlist. Of these three FTSE 100 shares, dirt-cheap Anglo American is the one I’d buy today.

The post These 3 FTSE 100 shares grew fastest over five years – I’d buy 1 of them today appeared first on The Twelfth Magpie.

More reading

• Here are 2 FTSE shares I’m excited about this July — and 1 I’m avoiding
• Up 16% in a day! Here’s why shares in this FTSE 100 dividend machine are soaring!
• Can anything save the Ocado share price?
• Forget buy-to-let! Aim for a million with a Stocks and Shares ISA instead

Harvey Jones doesn't hold any of the shares mentioned in this article. The Motley Fool UK has recommended Ocado Group. 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.

Is Polymetal a bargain compared to its competitors or are there better options out there? Let’s explore.

Will FTSE 100 mining stocks go higher?

Three Footsie mining stocks on my watchlist have made flying starts to 2022.

The Anglo American (LSE: AAL) share price climbed 34% following a $12bn increase in operating profit and a $1.7bn net debt reduction. Over a third of the miner’s 2021 EBITDA came from platinum group metals. Looking ahead, the company should prove resilient to geopolitical uncertainty. Anglo American, which is up 33% in a year, operates on six continents and has no Russian presence, unlike Polymetal.

Antofagasta (LSE: ANTO) is also racing ahead of the Polymetal share price, rising 22% this year (but down 10% over 12 months). As copper mining is the lifeblood of this Chilean multi-national’s business, shareholders will be encouraged by Goldman Sachs‘ 12-month copper price target of $13,000 per tonne. Antofagasta can build on a robust financial position after earnings per share rocketed by $87.80 last year.

Rio Tinto (LSE: RIO) stock completes the trio — it’s up 25% in 2022, but only up 4% in a year. Iron ore production accounts for almost 78% of its underlying earnings. In 2021, Rio Tinto generated +60% net cash and ordinary dividends per share rose 71%. Moreover, China’s iron ore imports remain stable in 2022, despite its economic slowdown. This is good news for the Rio Tinto share price.

With global interest rates rising, metal prices and mining stocks may fall so all of these shares come with risks. However, I believe the metals bull market could just be beginning as production seems unlikely to meet demand. For me, the outlook remains positive while supply side issues persist.

Will the Polymetal share price go lower?

Polymetal’s focus is precious metals, particularly gold and silver. It has operations in Russia and Kazakhstan. Although it consistently increased production over five years, the share price has been hurt by liquidity troubles caused by sanctions on Russian banks.

In further worrying signs, Polymetal postponed its decision on its 2021 final dividend payment. And Deloitte recently resigned as its auditor, threatening its London Stock Exchange listing.

Arguably, the stock’s substantial decline and a dirt cheap price-to-cash-flow ratio of 1.4 mean the risks it faces are priced in. Nascent plans to separate its Kazakh assets from the rest of the business lifted the Polymetal share price somewhat in recent days.

Nonetheless, I’m pessimistic about Polymetal shares. Headquartered in Cyprus, it avoided direct sanctions like those levied on Roman Abramovich’s Evraz. In a rapidly evolving situation, this could change.

The mining shares I’d buy now

Exposure to metals plays an important role in my diversified portfolio. I’m impressed by all three FTSE 100 stocks on my watchlist. They have strong balance sheets and are collectively spread across different geographies and commodities. I’d divide any spare cash between them.

By contrast, I see potential for further declines in the Polymetal share price. It’s simply too risky for me to buy at present, so I’m looking elsewhere for a solid gold miner.

The post Will FTSE 100 miners outshine the Polymetal share price in 2022? appeared first on The Twelfth Magpie.

More reading

• How much is needed in an ISA to unlock £1,220 of passive income a year?
• Forget meal deals! Here’s how £8 a day could be worth £357,000
• With a 7% yield, is this dividend share a no-brainer?
• The CMC Markets share price is smashing the FTSE 100 in 2026. Is there an opportunity here?
• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?

Charlie Carman has no position in any of the shares 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.

The FTSE 100 started the year well. Global investors finally woke up to the opportunities on the blue-chip benchmark index after years when their attention was elsewhere. I think they shouldn’t have left it so long — the opportunities were there all along.

The FTSE 100 is still up 9.77% over the last year, despite crashing on Friday, when the index fell almost 3% to near the 7,000 mark.

It is hardly surprising that UK shares crashed, given the impact of the Russian invasion of Ukraine on the global economy. We have been plunged back into a terrifying world we thought we had left behind, and fear and uncertainty is rife.

FTSE 100 looks a buy to me

At times like these, it is tempting to shun the stock market altogether. I’ve been caught up in the general sense of dread and panic myself, but have resisted the temptation to sell. I am still 10-15 years away from retirement, and I hope that gives me long enough to recover from the next market crash (and the next one, and the next…).

I’ve stood by my portfolio of FTSE 100 shares through the dot.com crash, 9/11 attacks, financial crisis, Covid pandemic, and now war in Ukraine. I’m ignoring doomsayers saying that people should pile into cash and gold, and holding my course.

I will also top up my holdings in UK shares from time to time. The FTSE 100 still looks pretty good value to me, trading at a price/earnings ratio of 14.82. The S&P 500 currently trades at more than double that, with a Shiller P/E of 35.18. It seems overvalued to me.

One reason the FTSE 100 has underperformed the US over the last decade is that it does not have the same exposure to fast-growing technology stocks. However, that sector now looks played out, whereas defensive, value stocks are swinging back into favour. I’m thinking of the banks, oil majors, mining companies, and insurers. The UK has plenty of those.

I fancy Barclays and Lloyds Banking Group, Shell, Rio Tinto, and Anglo American, and two old favourites Aviva and Legal & General Group. They may not be the most exciting stocks in the world, but they look strangely reassuring right now.

I’m backing UK shares

I will look to buy more FTSE 100 shares when I can, while accepting that any of my stock picks could crash if the political situation gets even worse. If it does, I may screw up my courage take the opportunity to pick up a few more of my favourite companies. Again, my aim is to hold for the long, long term.

The FTSE 100 is currently expected to yield 4.1% in 2022. That’s a terrific rate of income, at a time when a best buy easy access savings account pays around 0.60% a year. And of course it should rise over time, as companies increase their dividends. That’s why I’m standing by it, through thick and thin.

The post I reckon the FTSE 100 offers good value today. That’s why I’m buying and holding UK shares appeared first on The Twelfth Magpie.

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Harvey Jones doesn't hold any of the shares mentioned in this article. The Motley Fool UK has recommended Barclays and Lloyds Banking Group. 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.

The state pension age is now 66 for men and women, but from 2026 it will start rising to 67. Then it will rise again to 68, possibly from as early as 2037. It could ultimately climb past 70, to keep it affordable. I like my job but I’m not sure I want to work that long. Building a balanced portfolio of UK shares should mean I don’t have to.

I’ll decide when I retire, thank you

Anybody who believes the state will provide a decent standard of living in retirement is sadly deluded. It’s not going to happen. The UK already spends more than £100bn a year on the state pension, that’s an incredible 12% of total public spending and this proportion will rise as the population ages. Chancellor Rishi Sunak has already scrapped the triple lock once, and he is likely to do it again, in my view. So this is where UK shares come into it.

I’m self-employed, so it’s up to me to build retirement savings in my name. Nobody else is going to do it for me, sadly. I’m starting by building a balanced portfolio covering major markets such as the US and Europe, and sectors such as smaller companies. I don’t know enough about these markets to buy individual stocks, so I rely on low-cost exchange-traded funds (ETFs) and investment trusts to do the job for me. I do know a bit about UK shares, though.

There are three reason why I buy individual UK shares instead of funds.

• They give me the opportunity to generate outperformance and beat the market.
• Direct equities are more exciting because they can move rapidly (in either direction), and that keeps my interest levels high.
• It’s challenging (in a good way)! I like examining UK shares and checking out their potential, then seeing what happens to my stock picks (and how good/bad my judgement is).

Here’s why I’m buying UK shares

Right now, I can see plenty of opportunities out there. I suspect we are on the cusp of a commodity boom, because of that awful war in Ukraine. Rio Tinto tempts me. So does Anglo-American. I feel the financials sector is ready for a comeback, and rising base rates should allow the likes of Barclays and Lloyds Banking Group to widen their net interest margins and boost profits.

UK shares pay some of the most generous dividends in the world. Just look at Vodafone, GlaxoSmithKline, Johnson Matthey, and BAE Systems to name just a few. I will reinvest my shareholder payouts for growth today, and draw them as income when I finally retire. That may be when I’m 65, it may be later. The important thing is that the decision is down to me.

The post I still plan to retire at 65 and I’m banking on UK shares to get me there appeared first on The Twelfth Magpie.

More reading

• How much is needed in an ISA to unlock £1,220 of passive income a year?
• Forget meal deals! Here’s how £8 a day could be worth £357,000
• With a 7% yield, is this dividend share a no-brainer?
• The CMC Markets share price is smashing the FTSE 100 in 2026. Is there an opportunity here?
• With a yield of 6.8% and a P/E ratio of 12.1, is this a dirt cheap FTSE 250 stock to consider?

Harvey Jones doesn't hold any of the shares mentioned in this article. The Motley Fool UK has recommended Barclays, GlaxoSmithKline, Lloyds Banking Group, and Vodafone. 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.