Dividends are by no means, ever, assured. However with regards to discovering shares with the potential to construct good-looking passive earnings, I’d look no additional than the FTSE 100.

That’s my funding technique, not less than. And whereas it could sound relatively boring, I’m not fussed. I wish to make investing so simple as potential.

As such, I have a tendency to focus on family names with steady enterprise fashions and wholesome money flows. They have to additionally pay a meaty dividend yield. With the funds I obtain, I reinvest them again into shopping for extra shares of the businesses I like. That’s how I’m constructing my wealth.

I might go looking for the following Nvidia within the hope I can get wealthy in a single day. Nonetheless, the inventory market has confirmed that enjoying the lengthy sport is likely one of the greatest and most sustainable methods to reap its rewards.

With that, listed below are two of the very best Footsie shares I personal. I believe traders ought to think about shopping for them as we speak.

HSBC

HSBC’s (LSE: HSBA) one among my favorite shares. I first opened a place again in February when its share price slid 8% following the discharge of its full-year outcomes. I noticed an ideal shopping for alternative.

Since then, the inventory’s staged a pleasant restoration. Like a lot of its Footsie counterparts, it’s been gaining momentum this 12 months, rising 8.3%. However I believe it’s bought extra to offer. It appears undervalued, buying and selling on simply 7.6 occasions earnings.

I additionally noticed its share price dip as an opportunity to snag a much bigger yield. Immediately, it rewards shareholders with a 7.2% payout. It’s lined two occasions by earnings and has been steadily rising over the previous few years. These are inexperienced flags.

I’m cautious concerning the influence its publicity to Asia might have on its efficiency within the close to time period. Its heavy deal with China’s a fear. Banks are additionally set to really feel the squeeze on their margins from falling rates of interest.

However specializing in the long run, I’m bullish on HSBC. The financial institution laid out $7bn final 12 months in share buybacks, so there’s a transparent urge for food to maintain rewarding shareholders.

British American Tobacco

I additionally like British American Tobacco (LSE: BATS). Its share price is down 5.4% over the past 12 months, so clearly the broader market doesn’t share my eagerness.

However that’s the very best time to purchase, proper? I perceive the threats. Smoking’s turning into more and more unpopular. Not too long ago the corporate needed to writedown the worth of its US manufacturers, which led to its share price sinking.

However buying and selling on 6.6 occasions earnings, its shares seem like a steal. Coupled with that, they pay a whopping 9.6% yield. Regardless of the challenges it could face, the enterprise has forecast it’ll generate £40bn in free money circulate over the following 5 years. That bodes properly with regards to paying out to shareholders.

In its newest replace, launched on 4 June, the enterprise mentioned it expects sturdy development within the second half of the 12 months, largely “driven by the phasing of innovation in New Categories”.

I just like the strikes the enterprise is making on this division, which sells non-combustible items. Final 12 months, revenues for the unit climbed 21% whereas it achieved profitability two years forward of schedule.