With the FTSE 100 climbing, I’d buy these shares now

At FTSE 100 hit the all-time record Wednesday, 7,934 points. How long will it take before you finally beat the 8,000 point level?

Now that the Footsie is on the rise, there is something for long-term investors to pay attention to. If everyone invests for the long term and ignores short term sentiment, this should happen every day. What do I mean? Well, instead of jumping forward and backward, based on emotions and daily headlines, why not just move forward, little by little, every day?

The fact that they cannot provide benefits to private investors. If we keep our eyes on the long term, we can take advantage when irrational markets cause stock prices to fall.

Dividends

Now that stocks are up, I still prioritize dividends. And 2023 could set an all-time record, with forecasts showing total payouts of up to £85bn.

Mining stocks see a cut in 2022. However Rio Tinto yields a dividend of almost 9%. This is because China has abandoned its zero-covid lockdown policy and reopened to the world. I expect demand to increase, and commodity stocks are among my priorities.

Housebuilder shares are still down as we face a property squeeze. Taylor Wimpey, for example, at a forecast yield of 7.5%. And in Barratt’s Developmentwe see 7.9%.

Defense sharing

Defensive stocks still look weak, and that includes builders. I really can’t see the chronic housing shortage in the UK ending anytime soon.

Some stocks are defensive for specific reasons, like British American Tobacco and Imperial brand. The product is addictive, and the barrier to entry is just too great, making this a cash cow pair. Analysts expect a dividend of around 7%.

Companies that provide valuable goods and services are on my list. That includes Tesco, the UK’s largest grocery retailer by a fair margin. The distribution of energy is also important, and I can’t see who is capturing it National Grideffective monopoly.

Vital sector

What is the most important sector of the economy? I would argue that it is the financial sector. Without it, nothing else can be used. Banks have been hammered, but they are essential to the long-term health of the economy. And now, I think it’s still cheap.

Lloyds Banking Group is at eight times the predicted price-to-earnings (P/E), with a dividend yield of 4.5%. And the P/E is Barclays lower, only 6.5, with a yield of 4%. I give it a low rating.

Insurance stocks also fell. The dividend yield at 6.7% is 0%. Avivawith a forecast 2023 P/E of less than nine. Legal & General are at the same price.

Wait a minute…

Do you see anything in common with this stock? Actually, most of them are in important sectors, have defensive qualities, and pay high dividends. They match all three of my criteria.

All of these carry individual risks that I don’t have the space to review here, and investors should do their own research. But if I had enough money, I would definitely buy them all now. As, I have them on the list when the cash is available.