Two rock-solid FTSE 100 shares I imagine can supply good returns for me and my holdings are GSK (LSE: GSK) and Taylor Wimpey (LSE: TW.).

Right here’s why I’d love to purchase some shares after I subsequent have some money to take a position.

GSK

As one of many main names in prescribed drugs, GSK gives wonderful defensive traits, for my part. That is because of the cutting-edge pharma it produces with medicines and coverings to assist the world heal from numerous illnesses.

Final month, a decide in Delaware voted in favour of over 70,000 lawsuits to go forward towards the corporate. This associated to GSK’s Zantac drug and its potential hyperlinks to inflicting most cancers. Though GSK denies any proof to recommend a threat of most cancers, the prospect of main fines and reputational injury is a threat I’ll keep watch over.

From a bullish view, and given the defensive elements talked about, I believe there’s quite a bit to love in regards to the enterprise.

To start out with, the shares presently commerce on a price-to-earnings ratio of 14. It’s additionally set to go decrease, based mostly on forecasts. Nevertheless, I do perceive that forecasts don’t all the time come to fruition.

Subsequent, GSK shares supply a dividend yield of three.9%, which is broadly in step with the FTSE 100 common. I can see this dividend rising sooner or later too, based mostly on the agency’s popularity, expertise, and future pipeline. It’s value mentioning that dividends are by no means assured.

General, a longtime identify available in the market, an attractive valuation, passive earnings alternative, and what seems to be like a stable R&D pipeline with over 90 merchandise to come back, assist me make an funding resolution in the present day.

Taylor Wimpey

Home builders haven’t had a good time of issues up to now 12-18 months, attributable to financial volatility. Greater inflation, rates of interest, and a cost-of-living disaster have damage earnings and sentiment.

Inflation ranges at the moment are down, and rumours of a possible rate of interest reduce may spell excellent news. A possible housing increase might be on the horizon. Nevertheless, financial points are one of many greatest dangers for Taylor Wimpey, and one thing that might dent earnings and returns. For instance, increased prices may imply tighter margins and revenue ranges. I’ll keep watch over this.

If a housing increase is coming, Taylor Wimpey is primed to learn. At current, the shares look enticing to me.

Taylor is among the largest builders within the UK. It possesses a large presence, in addition to loads of expertise and a stable observe document. This might serve it properly as there’s a housing disaster within the UK. With demand outstripping provide, there is a chance for the agency to capitalise, and develop earnings and efficiency.

Lastly, the basics look good to me too. Taylor possesses a wholesome stability sheet, which can assist stave off financial turbulence, in addition to help development. Plus, the shares supply a dividend yield of 6.6% and commerce on a P/E ratio of simply 14.