If I had some funds to take a position proper now, I’d purchase three FTSE 100 shares. They’re LondonMetric Property (LSE: LMP), CRH (LSE: CRH), and Taylor Wimpey (LSE: TW.).

Although dividends are by no means assured, right here’s why I like these picks for juicy returns.

What they do

LondonMetric is about up as an actual property funding belief (REIT), which means it makes cash from property. The great thing about REITs is that they need to return 90% of income to shareholders.

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CRH is a building provide enterprise, together with supplies resembling cement, asphalt, and different aggregates.

Taylor Wimpey, the second-largest residential property developer within the UK, with a large presence, and beneficial observe file in addition.

The great things!

I’m a fan of LondonMetric’s numerous operations. It doesn’t have all its eggs in a single basket, like many different REITs. Diversification is a good way to mitigate danger. Plus, it provides the enterprise the flexibleness to capitalise on tendencies. LondonMetric possesses many logistics amenities to capitalise on the present e-commerce growth, and is transferring away from workplace house, which is reducing in demand resulting from residence working tendencies.

From a returns view, a dividend yield of 5.2% is enticing. For context, the FTSE 100 common is 3.9%.

CRH’s vast presence, in addition to the potential for dividend development is thrilling. Demand for additional infrastructure is linked to a rising international inhabitants. The demand for its merchandise may soar, and enhance earnings and returns. A main instance of that is CRH doubtlessly capitalising on an enormous infrastructure invoice handed lately within the US, which is the place the agency makes most of its cash.

From a returns perspective, CRH shares yield near 2% presently. Nevertheless, I can see this rising over time.

Taylor Wimpey is in a major place to learn from the housing imbalance within the UK. Demand is presently outstripping provide. With its beneficial market place and fame, the enterprise may discover that higher financial circumstances may catapult the enterprise to new heights. In flip, this might lead to boosted earnings and returns.

At current, the shares provide a dividend yield of 6.2%. Plus, the shares look first rate worth for cash on a price-to-earnings ratio of simply 15.

Dangers to contemplate

REITs use debt to fund development, and purchase new property to make cash from. LondonMetric might discover this tougher at current resulting from greater rates of interest as debt is costlier to service and pay down. This may occasionally have an effect on future returns.

For CRH, financial shocks are a fear. When these happen, building initiatives can grind to a halt. This might lead to earnings and returns being impacted. This can be a cyclical danger I’ll keep watch over.

It’s been a troublesome time for home builders resulting from greater prices associated to inflation damaging completion numbers and gross sales. Greater prices take a chunk out of income, which underpin returns. Plus, patrons have been deterred by greater rates of interest, which translate into greater mortgages. Regardless of inflation coming down, and a brand new authorities in place making guarantees to deal with the housing disaster, we’re not out of the woods but. A continued murky financial image may have a detrimental influence on earnings and returns too.