Invest 2,000 To invest, I probably want to buy two FTSE 100 Stock up for some diversification. And this is especially true if money is my first investment. Then, with the next figure, I want to bring more diversification to more FTSE 100 shares.
Creating a portfolio of FTSE 100 shares
Ideally, I prefer to place regular monthly investments in a stock account, such as a stock and share ISA. And the idea would be to build my investment over time.
So I want to diversify my portfolio across five different stocks.
And at the moment there are several FTSE 100 shares with large dividends. For example, the share price at 893p, the power company On the national grid (LSE: NG) has a far-sighted yield of about 5.7%.
In May, CEO John Pettigrew said: “The National Grid has … numerous opportunities to provide energy security and help deliver net zero in the United States and the United States.
And the firm’s core position in energy infrastructure has provided a promising trading and financial performance in recent years.
Like the way fixed cash flow has supported a progressive dividend policy, shareholder payments typically increase slightly each year. However, the business is highly regulated and requires a lot of capital investment. And one of the consequences of that situation is that a huge pile of debt has accumulated in the national grid.
It is possible that future regulatory requirements may compromise the company’s ability to pay growing shareholder dividends. Still, I would be interested in researching the company with the goal of adding some shares to my portfolio.
A strong player renewable
But I want to continue the energy theme with investing in my portfolio SSE (LSE: SSE). The company has emerged as a strong player in the modern renewable industry. And I think business has a lot of potential.
It is engaged in a program to reshape the company for the settlement and growth of non-core businesses. But I don’t have to wait to realize the full potential. Because there is already a convenient dividend to collect.
In July, finance director Gregor Alexander said the company has “An attractive offshore air pipeline that we want to expand and diversify.”
SSE also has “Options” Develop new thermal and pumped storage hydro technology. And Alexander sees the potential for significant growth in asset prices in the firmly regulated electricity business.
Meanwhile, with the share price hovering around 1,577p, the March 20223 forward yield for the trading year is hovering around 5.4%. I find that assessment interesting.
But the company’s renaissance as a renewable champion is quite young. In fact, the company has recently reduced its dividend as it resizes. Perhaps more obstacles could come to business.
However, city analysts predict an increase in shareholder payments and I think the firm’s growth plans are interesting. So, I would take the risk to add some shares to my portfolio and explore this opportunity.
Kevin Godbold has no position in any of the shares mentioned. Motley Flowers has recommended the UK National Grid. Opinions expressed in the companies mentioned in this article may differ from those of the author and therefore our official recommendations in our subscription services such as Share Advisors, Hidden Winners and Pro. Here at The Motley Flower we believe that considering a variety of insights makes us a better investor.