3 More Super-Significant FTSE 100 Shares

LONDON -- Just 13 shares make up more than 50% of the FTSE 100. If you want to know where the index is headed in 2013, you need to consider how its most important companies will fare.

Let's take a quick look at how BP (LSE: BP  ) (NYSE: BP  ) , GlaxoSmithKline (LSE: GSK  ) , and British American Tobacco (LSE: BATS  ) (NYSEMKT: BTI  ) are set for the year ahead.

Yesterday BP announced a 19% drop in quarterly profit. While this may sound a worrying decline, there are plenty of reasons to expect things to turn around in 2013.

BP has confirmed that production is expected to increase this year after remaining broadly unchanged in 2012. Since the Gulf of Mexico disaster, BP has been selling off peripheral assets. The company also has a new Russian deal in place that is expected to complete in the first half of this year.

BP shares trade on a 2013 price-to-earnings ratio of just 7.8. At today's price, the expected dividend yield is 5.8%.

Glaxo shares are remarkably solid. Despite the horrors of the eurozone crisis, for the last three years the shares have traded in a range between 1,100 pence and 1,500 pence.

This is likely due to the nature of the company's sales and products. Pharmaceuticals consumers rarely have the option not to buy medicines. As a result, expectations for Glaxo's future sales, profits, and dividends are quite consistent. This year, Glaxo is forecast to increase its earnings by 4.5% and its dividend by 4.2%. This puts the shares on a 2013 P/E of 12.3. The expected yield is 5.4%.

British American Tobacco
Tobacco consumers are a loyal bunch -- loyal to their habit and their brands. Tobacco firms are thus regarded as some of the safest investments on the market. Analysts often call shares like BATS "defensives." Yet the company's recent record shows that BATS is worthy of being called a "growth" company.

In the last five years, BATS has increased its sales by an average of 9.5% per annum. Earnings per share have increased at an average rate of 10.1% a year. The shareholder dividend has advanced by a stonking 17.7% a year on average.

That is an impressive record, but it does not mean that the shares should be bought whatever the price. BATS currently trades on 14.6 times forecast earnings for 2013. That does not leave much room for disappointment.

If you are looking for growth shares but even British American Tobacco's record is too pedestrian for you, check out the latest Motley Fool report: "The Motley Fool's Top Growth Share For 2013." This free report gives the lowdown on the growing company our share analysts expect the most from this year. To get your copy, simply click here. We will send the report to your inbox immediately.

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2238764, ~/Articles/ArticleHandler.aspx, 9/25/2016 8:20:55 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/23/2016 12:10 PM
BATS $4938.56 Up +75.56 +1.55%
British American T… CAPS Rating: No stars
BP $436.86 Up +2.26 +0.52%
BP CAPS Rating: No stars
GSK $1652.35 Up +3.35 +0.20%
GlaxoSmithKline CAPS Rating: No stars
BP $33.96 Down -0.30 -0.88%
BP CAPS Rating: ****
BTI $127.93 Up +0.62 +0.49%
British American T… CAPS Rating: *****