10 FTSE shares to buy and hold for long term

Highlights 

• Increasing vaccination rates across the country are driving the recovery of businesses.
• Investors seeking to invest in stocks for long-term may look to stocks that offer regular dividends and appreciation over time.

The COVID-19 crisis impacted the United Kingdom just as hard as the rest of the world. It resulted in the imposition of lockdown restrictions bringing business activities to a halt and the stock market crashing in early 2020. However, increasing vaccination rates across the country have driven the recovery of businesses and stocks.

However, there is persisting fear of mutant variants, which has been keeping the markets edgy. With the stock market constantly fluctuating, investors often find it difficult to keep up with the changing market dynamics.

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Here is a list of 10 FTSE shares to buy and hold for long term

1.       EVRAZ Plc (LON: EVR)

UK-based EVRAZ is a multinational steel manufacturing and mining company. For the H1 ended 30 June 2021, the group reported free cash flow of US$836 million compared to US$315 million in H1 2020, while its consolidated EBITDA stood at US$2,082 million, representing a year-on-year increase of 94 per cent from US$1,073 million in H1 2020. The group’s net profit was US$1,212 million in H1 2021 compared to US$513 million in H1 2020.

For 2021, Evraz fixed an interim dividend of US$802.3 million or US$0.55 per share. In H1 2021, EVRAZ paid interim dividends of US$0.30 per share (US$437 million) in April 2021 and US$0.20 per share (US$292 million) in June 2021 to shareholders.

EVRAZ’s dividend yield stood at 11.75 per cent, and the company’s market cap stands at £9,393.96 million as of 12 August.

2.       Diversified Energy Company Plc (LON:DEC)

FTSE 250 listed Diversified Energy Company is a producer of oil and gas in the Appalachian Basin, the US. The company’s average net daily production stood at 106 MBoepd for H1 2021, an increase of 11 per cent from 95 MBoepd in H1 2020. The adjusted EBITDA for the group was US$151 million in H1 2021, an increase of 3 per cent from US$146 million in H1 2020.

Diversified Energy Company declared an interim dividend of 4.00 cents per share for Q2 2021 ended 30 June 2021, $34 million more than the already paid $62 million dividends for the year till date.

Diversified Energy Company’s dividend yield stood at 10.74 per cent, and the company’s market cap stands at £912.47 million as of 12 August.

3.       Imperial Brands Plc (LON: IMB)

Imperial Brands is a UK-based multinational tobacco company. Some of the company’s most popular brands include - Davidoff, Rizla papers, JPS and West cigarettes, and blu. The company’s revenues stood at £15,568 million for the half-year ended 31 March 2021, an increase of 6.1 per cent compared to £14,672 million for the same period in 2020. Its operating profit rose from £925 million for the half year ended on 31 March 2020 to £1,637 million for the same period ended on 31 March 2021, an increase of 77 per cent.

Imperial Brands announced a dividend of 42.12 pence per share for the six months ended 31 March 2021, compared to 41.70 pence per share for the period ended 31 March 2020.

Imperial Brands’ dividend yield stood at 8.64 per cent, and the company’s market cap stands at £15,123.60 million as of 12 August.

4.       Ferrexpo Plc (LON: FXPO)

Ferrexpo produces, develops and markets iron ore pellets to the metallurgical industry. For the half-year ended 30 June 2021, the company’s revenues rose by 74 per cent to US$1,353 million compared to US$ 776 million in H1 2020, reflecting growing investments in improving pellet quality. Its EBITDA increased by 147 per cent to US$868 million (H1 2020: US$352 million), and its profit after tax increased by 165 per cent to US$661 million in H1 2021, from US$250 million in H1 2020.

Ferrexpo announced an interim dividend of 39.6 US cents per share in H1 2021 compared to 13.2 US cents per share in H1 2020.

Ferrexpo’s dividend yield stood at 8.67 per cent, and the company’s market cap stands at £2,585.24 million as of 12 August.

5.       Centamin Plc (LON: CEY)

Centamin is a gold mining firm and constituent of the FTSE 250 Index. The company’s revenues for H1 2020 ended 30 June 2021 stood at US$367.4 million from the sale of 203,802 ounces of gold at an average realised gold price of US$1,799 per ounce. Its pre-tax profit was US$116.8 million, and its EBITDA stood at US$190.4 million in H1 2021.

Centamin recommended a total dividend of US$105 million (interim and final) for the six months ended 30 June 2021 and a final dividend of approximately 5.0 US cents per share (US$58.7 million). 

Centamin’s dividend yield stood at 5.20 per cent, and the company’s market cap stands at £1,122.45 million as of 12 August.

6.       Genel Energy Plc (LON:GENL)

Genel Energy is an oil & gas exploration and production company. The company’s net production averaged at 32,760 bopd in H1 2021 (ended 30 June 2021), slightly above 32,100 bopd in H1 2020. The company’s revenues increased to US$151.5 million in H1 2020 compared to US$88.4 million in H1 2020.

Genel Energy declared dividends for the period at 6 cents per share compared to 5 cents per share in H1 2020.

Genel Energy’s dividend yield stood at 8.30 per cent, and the company’s market cap stands at £389.62 million as of 12 August.

7.       Ros Agro Plc (LON:AGRO)

Ros Agro Plc is an agricultural company engaged in the cultivation of grains, sugar-beet, and other crops; and is into processing and production of sugar and vegetable oil. For Q1 2021 (ended 31 March 2021), the company’s sales totalled RUB49,933 million (US$671 million), an increase of RUB17,000 million or 52 per cent compared to Q1 2020. Its adjusted EBITDA was RUB11,169 million (US$150 million), an increase of RUB6,164 million or 123 per cent compared to Q1 2020.

Ros Agro’s dividend yield stood at 8.29 per cent, and the company’s market cap stands at £1,439.33 million as of 12 August.

8.       Rio Tinto Plc (LON: RIO)

Rio Tinto is a company engaged in the mining and processing of mineral resources. It increased spending on exploration and evaluation to US$324 million in H1 2021. For the half-year ended 30 June 2021, net cash generated was US$13.7 billion, an increase of 143 per cent compared to H1 2020 figures, driven by higher pricing for aluminium, iron ore, and copper. Its underlying EBITDA was US$21.0 billion, an increase of 118 per cent compared to US$9.6 billion in H1 2020.

Ro Tinto announced cash returns of US$9.1 billion for H1 2021, comprising an interim ordinary dividend of 376 US cents per share (US$6.1 billion) and a special dividend of 185 US cents per share (US$3.0 billion).

Rio Tinto’s dividend yield stood at 8.09 per cent, and the company’s market cap stands at £76,132.97 million as of 12 August.

9.       Carnival Plc (LON: CCL)

Carnival Plc is a leading leisure travel company, and its portfolio of global cruise line brands encompasses Princess Cruises, Carnival Cruise Line, Holland America Line, P&O Cruises (Australia), Seabourn, Costa Cruises, P&O Cruises (UK), and Cunard.

For the half-year ended on 31 May 2021, the group revenues decreased to US$75 million compared to US$5,529 million for the same period in 2020. During the half-year ended on 31 May 2020, net cash provided by financing activities of US$9.4 billion enabled payment of US$689 million cash dividends.

Carnival’s dividend yield stood at 8.10 per cent, and the company’s market cap stands at £2,839.35 million as of 12 August.

10.    Cineworld Group Plc (LON: CINE)

Cineworld Group is a cinema operator with business operations spread across ten countries, including the United Kingdom and the United States. It operates at 759 sites and 9,269 screens globally. 

For the six months ended on 30 June 2021, the group revenue stood at US$292.8 million, down from US$712.4 million in H1 2020. The group’s adjusted EBITDA loss was US$21.1 million (H1 2020: profit of US$53.0 million) due to the impact of COVID-19 related restrictions and closures.

On 7 April 2020, the company announced the suspension of the Q4 2019 dividend of 4.25 cents per share. No dividend was declared for the current period, as the group focused on preserving liquidity for its recovery from the COVID-19 crisis.

As of 12 August 2021, the company’s market cap stands at £841.10 million.

Conclusion

In the recent past, the highly volatile nature of the stock market was primarily due to the COVID-19 pandemic. Rising vaccination rates and relaxation of COVID-19 related restrictions are driving the return of normalcy across business operations of companies and on the trading front. For long-term investors seeking stocks with robust fundamentals and those who offer regular dividends and appreciation overtime are always a good option.