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The FTSE 100 is a great place to find stocks, whatever your investing strategy. Whether you’re seeking growth or value for capital gains, or high dividend yields for passive income, UK blue-chip shares could give you what you want.
But here’s the thing: some top FTSE 100 shares offer a brilliant blend of growth, income, and value for money. Severn Trent (LSE:SVT), HSBC (LSE:HSBA) and Legal & General (LSE:LGEN) are three such stocks I’m considering for my own ISA and think others could too. Read on to find out more.
All-round value
Utilities stocks aren’t famed for their explosive growth potential. But Severn Trent provides this in spades, its long-term £15bn investment programme rapidly expanding its asset base and ability to raise profits.
Is this reflected in the company’s valuation? I think not — its forward price-to-earnings growth (PEG) ratio sits just inside value territory of 1 and below, at 0.9. City analysts expect earnings to surge 18% this financial year.
With Severn Trent’s dividend yield at 4.2% it offers plenty of bang for your buck, in my view.
What I also like is that the water supplier’s operations are highly defensive, providing strong earnings visibility. Remember that rising interest rates could push borrowing costs higher, though.
Another top bargain?
HSBC is enjoying brilliant momentum as its emerging markets rapidly grow. Analysts have been steadily raising their earnings and share price forecasts following the bank’s forecast-beating Q4 performance. I think this could continue.
Right now earnings are tipped to rise 12% in 2026. It reflects the strong performance of the bank’s ongoing restructuring programme, along with its huge structural opportunities in Asia. RBC analysts, for instance, note that “Asian wealth is a key growth area for HSBC which should continue to grow other income over the medium term.”
HSBC’s forward PEG ratio is also an ultra-low 0.4. And its dividend yield for 2026 is 4.6%, beating the 3% average for FTSE 100 stocks. Asia’s traditional banks like this are facing increasing competitive threats. Yet this remains a top blue-chip to consider.
FTSE-leading dividend yield
Legal & General is one of the FTSE 100’s best-priced dividend stocks, in my view. Its forward price-to-earnings (P/E) ratio is 8.7 times, while its PEG is 0.9. Meanwhile, the dividend yield for this year is the index’s highest, at 8.8%.
Low earnings multiples and sky-high yields are sometimes a red flag for investors. It can often be a sign of a company in difficulties, or that a dividend cut could be imminent. Is this a category Legal & General shares fall into?
I believe not. Firstly, the company is highly cash generative and has a large capital pile. Its Solvency II capital ratio remains an enormous 210%, underpinning current dividend projections. It also has significant growth levers to pull, as an ageing global population drives financial products demand.
Legal & General’s earnings are tipped to rise 10% in 2026. I’m optimistic about these forecasts, though the fallout of the Iran War creates some uncertainty.
The post 3 FTSE 100 stocks I’m considering for growth, value AND dividends! appeared first on The Motley Fool UK.
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More reading
- How many Legal & General shares must an investor buy to give up work and live off the passive income?
- How much is needed in an ISA for a £35,828 passive income from FTSE shares?
- Here’s how a £20k ISA could generate £2,413 every week from passive income shares
- With high yields and low P/Es, are these UK dividend shares screaming buys?
- How did HSBC pay more passive income via dividends in 2025 than any other British company?
HSBC Holdings is an advertising partner of Motley Fool Money. Royston Wild has positions in HSBC Holdings and Legal & General Group Plc. The Motley Fool UK has recommended HSBC Holdings. 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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