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These 3 FTSE 100 stocks are my first buys of 2023

Athlete preparing to run on start line in a lane numbered '2023'

I’m optimistic that 2023 will be better than 2022 for investors. And as such, I’m on the lookout for some FTSE 100 stocks that I can add to my portfolio this month.

Last year proved to be a tough ride, with racing inflation alongside the war in Ukraine seeing global markets take a hit. There’s no guarantee that these issues will subside this year (and in fact it’s very unlikely). However, here are three Footsie constituents firmly on my watch list.


The pick of the bunch for me is GSK (LSE: GSK). The stock is down around 10% across the last 12 months, so a share today would cost me around £14.30.

With the surging inflation mentioned above likely to continue into this year, what I most like about GSK stock is its dividend yield. Currently, this sits just below 7%. While this doesn’t beat inflation, it does trump the FTSE 100 average.

Despite its share price falling in 2022, GSK released some strong results across the year. Sales growth grew 9% in Q3. It also saw its net debt reduced by a significant amount.

Other factors draw me to the stock, such as the Haleon demerger. And while it may face headwinds in 2023 as inflation could continues to push up costs, I like the look of GSK.


Next on my list is Lloyds (LSE: LLOY). Like GSK, the stock had a poor 2022, falling well over 10%. In fact, the last five years have been bleak for Lloyds shareholders.

However, I think now could be the time to buy. Firstly, in the short term, Lloyds is set to benefit from higher interest rates. With rates rising to counteract inflation, this allows the bank to charge customers more when they borrow.

The stock also has a low valuation, with its price-to-earnings ratio sitting at just 7.9. And with a dividend yield of 4.4%, I further like Lloyds.

The biggest challenge for the business is the recession that we’re currently facing. On top of this, as a mortgage lender it could it suffer. However, with its stock at 48p, I’ll be picking up some Lloyds shares.

Legal & General

The final company on my list is Legal & General (LSE: LGEN). Despite a 14% fall across the last year, the stock has had a strong start to 2023.

The top attraction to the business is its strong brand recognition. It already has over 10m current customers. And with its strong brand comes the ability to attract more.

The firm posted some impressive half-year results, which included growing contributions to its five-year (2020-2024) plan. Part of this involves its dividend payout, with cumulative dividends targeted to reach £5.6bn-£5.9bn by 2024. Of course, this may not be achieved, but with a yield of 9.3% and plans to grow, this is attractive.

The business may see investors shy away from making investments as they continue to tighten their belts. However, I deem the stock a solid long-term buy.


With these FTSE 100 stocks taking a beating in 2022, I think they could all be solid additions to my portfolio for the year ahead and beyond. With the spare money I have left over from 2022, I plan to pick them up in the next few weeks.

The post These 3 FTSE 100 stocks are my first buys of 2023 appeared first on The Motley Fool UK.

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Charlie Keough has no position in any of the shares mentioned. The Motley Fool UK has recommended GSK, Haleon Plc, and Lloyds Banking Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.