The only FTSE 100 shares I own at the start of 2025

As the name suggests, the FTSE 100 comprises 100 shares at any given time. Many UK investors will probably own at least a couple of them, if not all of them through a Footsie index tracker.

When Warhammer maker Games Workshop joined the FTSE 100 just before Christmas, it became the 14th Footsie name in my 41-stock portfolio. In no particular order, here are the other 13.

Dividends shares

One great strength of the UK’s blue-chip index is the dividend income on offer. It yields a very respectable 3.6%, but you don’t have to rummage too long to unearth dividend stocks yielding far higher than the average.

My portfolio has four of these high-yielders in the shape of Legal & General, British American Tobacco, Aviva, and HSBC. Respectively, they yield 9.2%, 8.2%, 7.2%, and 6%.

Beyond the income potential, I like HSBC’s positioning in Asia, the world’s fastest-growing region. And I want my portfolio to have long-term exposure to the UK’s ageing population, which Aviva and Legal & General offer in spades. Meanwhile, British American Tobacco stock appears undervalued to me.

Naturally, dividends aren’t assured, and financial services stocks are exposed to the fluctuations of markets. British American Tobacco’s having to manage a decline in the number of smokers worldwide while building up its non-cigarette business (vapes, pouches, heated tobacco, etc).

Nevertheless, I think this little basket of FTSE 100 high-yielders offers my portfolio solid dividend prospects and decent diversification.

Growthier names

I also hold other dividend-paying stocks where, over time, I hope for a decent bit of share price growth on top. These include bottler Coca Cola HBC and Diageo, which yield 2.9% and 3.3% respectively.

Between them, they sell a number of timeless brands, including Coca-Cola, Sprite, Fanta, Johnnie Walker, Smirnoff, and Guinness.

I’d put 2.6%-yielding defence giant BAE Systems in this bucket too. As EU Commission president Ursula von der Leyen said in 2024: “The world is as dangerous as it has been for generations.”

BAE’s helping European countries re-arm in an age of rising external threats. While an unpredictable Donald Trump administration adds uncertainty, I think BAE will do well moving forward.

Two turnaround stocks I hold are JD Sports Fashion and Rolls-Royce. But the former has just tanked after Christmas profits underwhelmed, so the turnaround may take a while. I’ll remain patient.

Rounding out this category are diversified pharma giant AstraZeneca and plant hire firm Ashtead Group.

Investment trusts

Finally, I hold a pair of FTSE 100 investment trusts in my portfolio. One is Pershing Square Holdings, which offers exposure to Bill Ackman’s hedge fund. He has a tremendous record of beating the market.

The other is Scottish Mortgage Investment Trust (LSE: SMT). The fund invests in innovative firms with high growth potential, including Amazon, Nvidia, and Instagram owner Meta Platforms.

But Scottish Mortgage also gives exposure to exciting private companies that I can’t invest in myself. One is SpaceX, Elon Musk’s extraordinary rocket company whose valuation has swelled to $350bn. Its Starlink internet service now has over 4.6m subscribers.

Due to the trust’s sole focus on growth companies, it can underperform badly during bear markets. But the portfolio’s packed with innovators that I expect to be much larger in future, which should boost Scottish Mortgage’s value over time.

The post The only FTSE 100 shares I own at the start of 2025 appeared first on The Motley Fool UK.

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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Ben McPoland has positions in Ashtead Group Plc, AstraZeneca Plc, Aviva Plc, BAE Systems, British American Tobacco P.l.c., Coca-Cola Hbc Ag, Diageo Plc, Games Workshop Group Plc, HSBC Holdings, JD Sports Fashion, Legal & General Group Plc, Pershing Square, Rolls-Royce Plc, and Scottish Mortgage Investment Trust Plc. The Motley Fool UK has recommended Amazon, Ashtead Group Plc, AstraZeneca Plc, BAE Systems, British American Tobacco P.l.c., Diageo Plc, Games Workshop Group Plc, HSBC Holdings, Meta Platforms, Nvidia, and Rolls-Royce 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.