£5k to invest? I’d buy these FTSE 100 UK shares

July 5, 2021 0 Comments

first_img Rupert Hargreaves | Thursday, 27th August, 2020 | More on: PNN UU Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Image source: Getty Images Simply click below to discover how you can take advantage of this. “This Stock Could Be Like Buying Amazon in 1997” Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! If you’ve £5,000, or any other amount, to invest today, buying a basket of FTSE 100 companies could be the best place to stash your hard-earned cash. Indeed, buying a basket of high-quality UK shares is a tried a tested way of building wealth over the long term. Here are two blue-chip stocks I think have the potential to yield large total returns for investors. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…UK shares to buy One of the most defensive FTSE 100 stocks, in my opinion, is water group United Utilities (LSE: UU). The company provides water and wastewater services for 3m homes and businesses in the North West. It also owns hundreds of reservoirs and millions of kilometres of pipework. These assets enable the group to provide its service to customers. It’s taken United Utilities decades to develop its network. This gives the business a defensive nature and competitive advantage. It’s unlikely a new company will be able to come in and take market share. Doing so would cost a significant amount of money, and require approval from regulators. As such, I think United is one of the best UK shares to own as part of a diversified buy-and-forget portfolio. It’s a guaranteed income stream from its defensive assets, and people will always need water. This constant demand should help support the group’s 5% dividend yield for decades to come. FTSE 100 income buy Pennon Group (LSE: PNN) has similar qualities to United Utilities. It owns and operates a network of water assets, which would be difficult to replicate. This also gives the company a defensive income stream from operations that are relatively predictable. Few other UK shares offer the same quality. A predictable income stream is an excellent quality for an income stock. If a company knows roughly how much money it’s going to receive from customers every year, it can plan its dividend to investors more effectively, balancing capital spending and cash returns.The FTSE 100 stock’s returns over the past decade stand testament to this strategy. Over the past 10 years, shares in the utility group have outperformed the blue-chip index by 3.5% per annum. I think it’s highly likely the stock will continue to outperform other UK shares, thanks to its defensive income stream and strong balance sheet. The company’s dividend to investors is also extremely attractive, especially in the current interest rate environment. The stock currently supports a dividend yield of 4.3%. Therefore, if you’re looking to invest some of your hard-earned money into the stock market, I think it could be worth taking a closer look at Pennon and United Utilities. Both companies have a strong competitive advantage, strong balance sheets, and support market-beating dividend yields.I think these qualities will help these stocks produce high total returns for investors in the decades ahead when owned as part of a diversified portfolio of UK shares.  Enter Your Email Addresscenter_img Our 6 ‘Best Buys Now’ Shares See all posts by Rupert Hargreaves I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Rupert Hargreaves does not own any share mentioned. The Motley Fool UK has recommended Pennon 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. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. £5k to invest? I’d buy these FTSE 100 UK shareslast_img read more