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Two solid as a rock FTSE100 stocks that I think can give me good profits and my assets are GSK (LSE:GSK) and Taylor Wimpey (LSE:TW).
Here’s why I’d happily buy some stocks when I had some cash to invest.
GSK
As one of the leading pharmaceutical brands, GSK offers excellent defensive qualities in my opinion. This is due to the cutting-edge pharmaceutical products it produces, offering medicines and therapies that lend a hand the world treat various ailments.
Last month, a Delaware judge voted to file more than 70,000 lawsuits against the company, including GSK Zantac drug and its potential links to causing cancer. Although GSK denies any evidence to suggest a cancer risk, the risk of vast fines and reputational damage is a risk I will keep in mind.
From a bullish perspective and considering the defensive aspects mentioned, I think there are many reasons to like this business.
For starters, the stock is currently trading at a price-to-earnings ratio of 14. That is also expected to fall. I understand that forecasts don’t always work out, though.
Next, GSK shares offer a dividend yield of 3.9%, which is broadly in line with the FTSE 100 average. I see this dividend growing in the future, given the company’s reputation, track record and future pipeline. It’s worth mentioning that dividends are never guaranteed.
Overall, a well-established brand in the market, attractive valuation, passive income opportunity, and what looks like a solid R&D pipeline with over 90 products in the future helped me make an investment decision today.
Taylor Wimpey
Developers have had a tough time over the past 12-18 months due to economic volatility. Higher inflation, interest rates and a cost-of-living crisis have hurt profits and sentiment.
Inflation levels are now lower and rumours of a potential cut in interest rates could mean good news. A potential housing boom could be on the horizon. However, economic issues are one of the biggest risks for Taylor Wimpey and something that could reduce profits and returns. For example, higher costs could mean lower margins and profit levels. I will be watching this.
If a housing boom is coming, Taylor Wimpey is poised to take advantage. The stock looks attractive to me at the moment.
Taylor is one of the largest developers in the UK. It has a vast presence, as well as a mighty track record and a solid track record. This could be beneficial to it as the UK is facing a housing crisis. With demand outstripping supply, the company has an opportunity to capitalise on this opportunity and raise profits and performance.
Finally, the fundamentals also look good to me. Taylor has a vigorous balance sheet that can lend a hand stave off economic turbulence and also support growth. The stock also offers a dividend yield of 6.6% and trades on a P/E ratio of just 14.