In turbulent economic times, the defensive nature of companies in the market FTSE100 can be very attractive to investors looking for sheltered passive income. The last year or two may have been the beginning of radical change in this regard, with 2025 becoming a banner year for Footsie. London’s leading index achieved a return of 21% (including dividends!), even outperforming an AI-based index S&P500. In 2026, it is 5% better than the current one.

Many believe that worsening economic weather may be on the horizon, but is the FTSE 100 the beginning of a long bull market? And what stocks could grow in the coming years?

In your pocket

If I had to sum up the state of the FTSE 100 in a few words, I would probably choose high dividends, global diversification, low valuations and “old economy” sectors. Each of the four characteristics is something of a double-edged sword.

High dividends are great for those who prefer cash in their pocket. However, using the cash for company investments or buyouts may be better for stock price growth.

Its global reach makes it less susceptible to problems localized in the UK. However, this means that there is a lot of emphasis on enormous economies such as the US and China.

Low valuations, such as price-to-earnings ratios, indicate companies are undervalued, but they are also a sign of destitute growth prospects.

And more established sectors like defense, banking and mining aren’t going anywhere. However, the lack of focus on technology has been a real drag in recent years and a major reason why the S&P 500 has remained forceful over the past decade.

In summary, there are many reasons to believe that the last 10 years of destitute performance may be a blip rather than the norm.

Revival

What will happen if the FTSE 100 continues to beat the S&P 500? What actions can lead the avant-garde? I think miners like it RioTinto (LSE: RIO) are worth considering in this regard. We are already seeing a rebirth of this sector and I see it continuing.

The stock pays a solid dividend yield of 3.95%. Over the past year, the company’s share price has increased by 43%. However, the price-to-earnings ratio of 13 is below the index average.

It looks like demand should remain forceful in the medium term as well. Rio Tinto’s metals and minerals, such as aluminum, lithium and copper, are key metals for low-carbon energy production. Its largest product, iron ore, is also vital for the electricity infrastructure.

There is a risk that the company’s condition is linked to the global economy. If the economic downturn comes, there will be less demand for raw materials.

Time will tell how lasting this golden spell will be for the FTSE 100. However, I see no reason why Footsie stocks like Rio Tinto won’t remain valuable to investors in the years to come.