2 FTSE 100 dividend shares I’d buy to own for 10 years!

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I don’t have unlimited capital reserves that I can use to buy UK stocks. So for this time I made a list FTSE 100 stocks I plan to invest in.

Here are two English blue chips that I would have liked if I had the money to spend.

Antofagasta

The mining process for raw materials is complex. Even the biggest and best commodity companies can experience sudden and severe problems that can reduce their earnings.

Take Antofagasta (LSE:ANTO) for example. Production at the copper giant fell 10.4% last year to 646,200 tonnes, due to two major problems at its Chilean operations. Drought affects the water supply when leaking pipes affect the copper concentration of the supply.

This, combined with lower copper prices, caused pre-tax profits to fall 26% from 2021 levels.

But despite these risks, I still believe investing in a great miner like this is a good idea. That’s why I have it Rio Tinto stocks in my stock portfolio.

Riding a supercycle

The world is about to start a supercycle of fresh commodities. Trends such as the demand for renewable energy and increased construction activity in emerging markets are driving the turbocharged demand for industrial metals.

Companies like Antofagasta should be well placed to exploit this raw materials boom. Indeed, research from S&P Global illustrates the huge earnings potential for copper producers in particular.

Analysts predict that “lack of copper supply [will] starting in 2025 and ending decades later”, a scenario that can raise the price of the metal.

He also said that demand will double between now and 2035 and “substitution and recycling will not be enough to meet the demand for electric vehicles, power infrastructure, and renewable generation.“.

The chart shows projected demand for copper.
Source: S&P Global

Antofagasta expanded its operations to take advantage of the favorable price landscape as well. The ongoing expansion of the main Los Pelambres mine, will increase annual copper production by 60,000 tons in the first 15 years.

Supply issues are more likely to cause some earnings volatility. But I’ll still be back for the amazing long-term returns.

secret

For a variety of reasons, I believe in real estate investment trusts (REITs). secret (LSE: SGRO) could also be the top stock for me to own for the next decade.

This FTSE 100 stock builds, acquires and then lets large-box commercial properties. These are the types of assets that are in demand as e-commerce continues to grow. It is a popular base for manufacturers, retailers and couriers.

However, the supply of these critical properties is failing to meet the growing demand. So Segro continues to enjoy impressive rental income growth (like-for-like rent grew by almost 7% last year). A weak development pipeline in the UK market means this shortfall looks set to persist.

Indeed, the company’s profits may suffer in the near term as the economy slows. Businesses may find it more difficult to collect rent from tenants in this landscape. But in the long run I still expect Segro stock to return investors very well.



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