I believe now’s a superb time to purchase FTSE 100 earnings shares, as so many look low cost right this moment. Right now, I’m concentrating on firms which have proven they’re eager to reward loyal shareholders by growing their dividends 12 months after 12 months.

Gross sales and advertising agency DCC (LSE: DCC) might not spring out as a FTSE 100 dividend hero, with a trailing yield of simply 3.53%. Nonetheless, it’s a real Dividend Aristocrat, having hiked shareholder payouts for every of the final 19 years.

Dividend heroes

AJ Bell just lately calculated that DCC had hiked its dividend by a mean of 10.8% yearly for the final decade. Now might be time for me to purchase into this earnings stream. The DCC share price fell 4.42% final week, decreasing its valuation to only 11.9 instances earnings. Over one 12 months, it’s up a strong 18.08%.

DCC is a tough firm to classify because it presents advertising companies to international companies and can also be one of many largest bottled fuel suppliers on the earth. Some will see this as helpful diversification. Others as a distraction.

Retirement enhance

Revenues recovered sharply after the pandemic, boosted by the power shock, however have slowed as fuel costs ease, as this chart exhibits.

Chart by TradingView

But on the similar time, the inventory has been getting dramatically cheaper, as measured by its price-to-book ratio. Try this chart.

Chart by TradingView

Final month, JPMorgan Cazenove went ‘overweight’ on the inventory and set a 6,700p price goal. That’s nearly 25% larger than right this moment’s 5,405p. It mentioned DCC ought to profit from the rising European photo voltaic set up market and rising gross sales in its healthcare phase. I’ll purchase it when I’ve the money.

I’d prefer to match it with FTSE 100 distribution and outsourcing group Bunzl (LSE: BNZL). It’s additionally a Dividend Aristocrat whose low 2.21% yield masks the truth that it has hiked payouts for twenty-four consecutive years.

The shares have placed on present currently, rising 12.9% over one 12 months and 48.05% over 5.

Final month, Bunzl mentioned first-half revenues fell 3% to 4%, largely on account of alternate charge swings, however would choose up within the second half. This chart exhibits a slowdown, however the long-term image is encouraging, for my part.

Chart by TradingView

The board forecasts sturdy margin development this 12 months, boosted by its relentless acquisition drive (it’s spent £600m this 12 months and counting).

Its two latest purchases, Brazilian medical system distributor RCL Implantes and Canadian hygiene merchandise specialist Clear Spot, point out Bunzl’s international attain and vary.

Bunzl is affordable by its requirements, buying and selling at 16.12 instances earnings. The price-to-book ratio has been sliding too, as this chart exhibits.

Chart by TradingView

I believe now seems to be like time so as to add Bunzl to my retirement portfolio too. I’ll reinvest all my dividends right this moment and begin drawing them as earnings in some unspecified time in the future after I retire.