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When building an income portfolio, there are few things more reassuring than blue-chip FTSE 100 companies that have paid and increased dividends year after year. These sorts of stocks don’t capture headlines with dramatic growth, but they offer a dependable anchor when markets wobble.
Of course, the biggest danger is a dividend cut, which can wipe out much of the value proposition in one fell swoop. That’s why consistency in payments, healthy coverage, and solid financials are critical.
With that in mind, here are two FTSE 100 shares I think are worth considering over most others for long-term income: Bunzl (LSE: BNZL) and British American Tobacco (LSE: BATS).
Bunzl
Bunzl is a distribution and outsourcing group that supplies non-food products to customers in foodservice, grocery, healthcare, cleaning, safety and retail. It’s not the most glamorous business but the boring ones are often the most dependable.
At present, it yields 3.12% and has delivered dividend growth at a compound annual rate of 8.4% since the millennium, which is impressive consistency. Its earnings cover dividend payments more than twice, giving investors confidence that distributions can continue.
There are risks though. Rising debt is a concern, up 30% in the past five years to £3.72bn. Now slightly outweighing equity, it could limit reinvestment. The company also faces stiff competition across its sectors, which may pressure margins.
Its H1 2025 results were mixed, with revenue up 4.2% while operating profit fell 14%. Even so, Bunzl confirmed guidance for the year, including moderate revenue growth. The group also resumed its share buyback, with £86m remaining of the current programme.
Not long after, Morgan Stanley maintained a Hold rating on the stock, raising its target price to 3,100p from 3,050p. While it may not be an exciting growth opportunity, for steady, reliable income, it’s hard to ignore.
British American Tobacco
British American Tobacco is one of the most dependable dividend payers on the FTSE 100, typically yielding between 6% and 8%. It has managed to keep distributions rising for over two decades, despite shifts in regulation and consumer habits.
However, valuation might be a sticking point. With a price-to-earnings ratio of 27.78, the stock could be edging into overvalued territory, which might limit future returns.
Beyond that, the long-term risks are clear. Tobacco regulation could slow revenue, and the costly shift towards less harmful products may take years to become meaningfully profitable.
But financially, the business remains solid. It reported revenue of £25.6bn and net income of £3bn, giving it an 11.9% net margin. Its debt-to-equity ratio sits at 0.75, suggesting the balance sheet is manageable.
Betting on consistency
If an investor were building a long-term income portfolio today, Bunzl and British American Tobacco could be among the first names to check out. Their blue-chip status, consistent dividends and resilient businesses give me confidence. But even the best income stocks carry risk.
That’s why a diversified approach is essential. Balancing exposures across sectors, geographies and business models helps cushion against surprises. While neither of these stocks is guaranteed to flourish forever, they embody the qualities I look for in durable income names.
