2 Brilliant FTSE 100 Stocks Investors Should Consider Buying in July!

That does not like FTSE 100 Stocks? They offer investors exceptional opportunities to buy high-quality securities and build long-term wealth. This fits perfectly with my investment strategy.

Here are two that particularly caught my attention. I think investors should consider buying them this month.

A house builder

The first of my two choices is the home builder Taylor Wimpey (LSE: TW.). Despite rising 39.1% over the past 12 months, the stock has not performed very well so far this year. In the first half of 2024, it has lost 1.4% of its value.

Clearly the stock missed the Footsie rally. But I’m not going to complain. I now see good value in Taylor Wimpey.

The stagnant share price has pushed up its dividend yield. The stock now has the 10th highest dividend in the index, at 6.7%. Its dividend saw a healthy increase last year, to 9.58p per share, up almost 2% on the previous year.

Furthermore, after a few difficult years, positive signs are starting to emerge from the housing market. Firstly, the interest rate cut seems to be getting closer and closer. With inflation falling to the 2% target in May, this should help. The rate cut will revive people’s appetite for mortgages and boost demand for Taylor Wimpey.

Looking further ahead, it’s no secret that the UK is experiencing a severe housing shortage. And building more homes has been a major talking point in the upcoming election. That’s another reason why I’m bullish on the company.

That said, a delay in the rate cut could hurt the stock price. In the short term, I think the stock could continue to suffer. We are not out of the woods yet on inflation and a rise in the coming months could prompt investors to turn away from Taylor Wimpey.

But as a long-term stock, I like the look of its shares. I think July could be a good time to consider getting in and buying the homebuilder.

A supermarket giant

I also had industry giants Tesco (LSE:TSCO) has been on my watchlist for some time. July could be a good time to consider buying its shares as well, in my opinion.

The share price has had a better start to the year than Footsie, rising 5.1% over the period and 24.8% over the last year.

But at 12.6 times earnings, I still think Tesco shares are good value. I also like the company because of its incredibly strong brand awareness and market leadership.

That said, competition is a threat. Aldi and Lidl continue to take the sector by storm and have become even more popular during the cost of living crisis thanks to their affordable prices. This is something to keep an eye on.

Despite these threats, Tesco has found a way to maintain its position at the top. I think it is thanks to clever programs like its Clubcard program, which now has around 20 million users, that the company has achieved this.

There’s also the potential to make a little extra cash from its 3.9% yield. That’s higher than the Footsie average. If I had the money, I’d buy both stocks this month.

The article 2 Brilliant FTSE 100 Stocks Investors Should Consider Buying in July! appeared first on The Motley Fool UK.

Further reading

Charlie Keough has no position in any of the stocks mentioned. The Motley Fool UK has recommended Tesco Plc. The opinions expressed about the companies mentioned in this article are those of the author and 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 broad range of ideas makes us better investors.

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