2 FTSE 100 dividend stocks I’m considering buying more of!

I already have this FTSE 100 stocks in my investment portfolio. And now I’m thinking of adding it to my holdings. Here is a short explanation why.

Bunzl

Business support services Bunzl (LSE: BNZL) is one of the core holdings in the Stocks and Shares ISA. I bought it for long term passive income and today’s full year update illustrates why.

You can see that the company has issued annual dividends for 30 consecutive years. In fact, the total dividend for 2022 is up 10% to 62.7p per share.

Bunzl is a cash-generating machine. This gives us the means to raise our dividend every year and also reinvest it for growth. An ambitious and well-executed acquisition strategy has provided profitable growth to deliver a generous dividend policy.

Revenue in 2022 rose 9.8% last year due to acquisitions, to £12bn. This resulted in pre-tax profits 11.6% higher to £634.6m.

Encouragingly for investors like me, Bunzl has no intention of changing the recipe for success. Today, the business announced two more acquisitions: German online workwear and PPE distributor Arbeitsschutz-Express, and food, cleaning and hygiene products specialist Capital Paper.

The dividend yield at Bunzl is admittedly not the greatest. For 2023, the company reads 2.2%, below the FTSE 100 average of 3.5%.

However, the firm’s commitment to strong dividend growth allows investors to combat the problem of inflation. This is what I think makes it a great buy for long-term passive income.

persimmon

House builder persimmon (LSE: PSN) is another blue-chip stock I buy for dividends. Payments will fall in 2023 as the housing market cools. But now, the yield is still at 8.6%.

That said, I wouldn’t add Persimmon stock. This is due to the great uncertainty about housing demand in the short to medium term. The resulting cloud hanging over the company’s dividend forecast means there may be better high yield stocks for me to buy today.

The latest data from Nationwide shows house prices fell for the fifth month in a row. The decline in homebuyer appetite is likely to persist if interest rates continue to rise and affordability remains under pressure.

But I remain positive about Persimmon as a long-term investor. And if it becomes clear that a complete property market crash can be avoided, I will add more stocks to my portfolio.

A poor attempt to start property construction has led to a rise in house prices in the last decade. Britain has a shortage of new homes and this shortage looks set to last, meaning builders will have to continue to command a premium for their products.

The Federation of Home Builders says only 120,000 new homes will be built each year due to government policy. This would fall short of the official target of 300,000 and increase the supply and demand imbalance.

I intend to hold Persimmon shares, like my Bunzl shares, for a long time.