2 FTSE 100 stocks that could boost my monthly income

Buying shares in businesses that pay dividends to investors can be a great way to earn extra income without having to work. With FTSE 100 have some great stocks to buy.

Investing in the stock market is always a risky business. But for investors who are willing to take a long-term approach, I think there are some good opportunities at the moment.

InterContinental Hotel

Top of my list InterContinental Hotels Group (LSE:IHG). The company allows hotels to use its brand and network in exchange for a fee plus a percentage of profits.

I think IHG is an example of what billionaire investor Warren Buffett would call a good business. With running and maintenance costs left to individual owners, the costs are very low.

This allows management to use the cash generated by the business to buy back shares. Over the last decade, the number of shares outstanding has fallen by about 10%.

The biggest risk with stocks right now is that they are not cheap. At a price-to-earnings (P/E) ratio of 31, the share price may be vulnerable if interest rates continue to rise.

However, from a passive income perspective, I think investors should focus on the company’s income. In the end, this is what keeps the dividend going.

To me, the basic business looks good. It has a strong collection of brands and the number of rooms in the franchise is increasing.

The current dividend yield is around 2%, which is not exciting. But I think the asset-light business model of the company gives this potential higher than time.

Bunzl

I think so too Bunzl (LSE:BNZL) can be a good source of passive income. The company is a collection of smaller distribution businesses. These products include (among others) packaging, hygiene products, and personal protective equipment. In a fragmented industry, the business stands out for me.

The company’s big advantage over its competitors is scale. This allows us to provide a more reliable, comprehensive and efficient service than our competitors.

It also balances this with the attention-to-detail of a small operator though. Bunzl’s decentralized model allows for specialist knowledge and close customer relationships.

As a conglomerate, there are always risks when acquiring new businesses. But the company’s management has repeatedly shown that it can do this in a disciplined way.

Like IHG, the stock yields a 2% dividend. The company’s strong record of increasing earnings gives reason to think this could be higher in the future.

Long term investment

One of the most important things when it comes to investing is patience. Big returns for investors don’t come in a week, a month, or even a year – they can take decades to happen.

With that in mind, I don’t think investors like me should be looking for a big increase in our income in the short term. The best thing is to start small and build.

I like both InterContinental Hotels Group and Bunzl as stocks to buy for passive income. If I had the cash available to invest, I would buy it now and hold it for a long time.