Here's a portfolio of 3 FTSE 100 shares for passive income AND growth!
Looking for FTSE 100 shares to deliver dependable earnings and dividend growth? Here are three to consider today.
Safety equipment supplier Halma (LSE:HLMA) is expected to report a 23rd straight year of record profits when trading numbers for financial 2025 come out on 12 June.
What makes it so resilient, you ask? One reason is it's great track record of acquisitions (decades of M&A mean it comprises 50 different businesses). Another is the fact that safety is one area which businesses can ill afford to skimp on, regardless of broader trading conditions.
Halma's impressive growth story means it also has one of the longest records of unbroken dividend growth on the FTSE 100. Payouts here have risen by at least 5% every year since the late 1970s. And it's tipped to raise them 7% in the current financial year (ending March 2026).
Indicidentally, earnings are expected to rise another 8% during the current fiscal period. It's a forecast that means the predicted dividend is also covered an impressive four times over by anticipated earnings.
To put that into context, any reading above two times is said to provide a wide margin of safety. Be mindful, though, that M&A-based growth strategies leave companies exposed to severe execution risk.
To non-fantasy gamers, the resilience of Games Workshop's (LSE:GAW) sales over time may be hard to understand. After all, spending on expensive plastic miniatures and games-related paraphernalia should, in theory, be among the first luxuries to go.
Yet the Footsie firm's products are playfully known as 'plastic crack' for a reason. Tabletop gamers are passionate about the hobby, and will find ways to stretch their budgets to build their collections even during economic downturns.
Games Workshop is especially resilient, as its Warhammer products command an especially loyal (and growing) global community of enthusiasts. Profits have kept rising despite the ongoing cost-of-living crisis. And City analysts expect another 16% bottom-line rise this financial year (to May 2026).
Dividends have risen at an annualised growth rate of 24% since fiscal 2020. And they're expected to increase 18% year on year in the current financial period.
Predicted dividends are covered just 1.1 times by anticipated earnings, however. This could cause problems if profits disappoint (for example, due to cost pressures).
Like Halma, Coca-Cola HBC (LSE:CCH) has a long record of consistent annual dividend growth. Cash rewards have grown every year since it listed on the London Stock Exchange in the early 2010s, including an 11% year-on-year hike in 2024.
The company's focus on the highly stable fast-moving consumer goods (FMCG) sector provides steady earnings over time, and thus the means for it to pay a decent and rising dividend.
But this is only half the story. As the bottler of the world's most popular soft drink — along with a raft of other highly popular brands like Sprite, Monster Energy, and Schweppes — it benefits from pricing power than helps it grow profits (and subsequently dividends) across the economic cycle.
City brokers are expecting a 14% rise in annual earnings in 2024, and a 12% increase in the total dividend. Encouragingly, this year's payout is also covered 2.2 times.
Despite fierce market competition from other FMCG makers and local producers, I think it's a top FTSE 100 dividend stock to consider.
The post Here's a portfolio of 3 FTSE 100 shares for passive income AND growth! appeared first on The Motley Fool UK.
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Royston Wild has positions in Coca-Cola Hbc Ag and Games Workshop Group Plc. The Motley Fool UK has recommended Games Workshop Group Plc and Halma 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.
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