If someone were to describe me as boring but beautiful, I am not sure if I would take that as an insult or a compliment. Fortunately FTSE100 Shares don’t have feelings, so I can certainly describe a company as one. For this reason, here are a few shares that may not always make the headlines, but can also provide high returns to my ISA that allow me to sleep soundly.

Beautifully packaged

First of all, DS Smith (LSE:SMDS). First listed on the stock exchange in the 1950s, the international packaging company has a proven track record, delivering profits year after year, even during the pandemic.

A key factor here is the type of business you do. Packaging and recycling probably falls into the boring category, but it is certainly a lucrative business! In addition, certain types of packaging are a necessity for other companies to help sell their products, so there is (and I believe always will be) a constant flow of orders.

Recently, the company has also been making a greater emphasis on using sustainable, plastic-free packaging. This will make it attractive to ESG-focused investors. It also future-proofs it, as I expect there will be a greater focus on sustainable business in the coming years.

The stock is up 53% in the last year. Given the recent rally, it is currently close to its three-year high. Some see this as a risk that the stock may be a little overvalued at the moment. I understand this, but as my ISA is where I put long-term investments, I am not too concerned.

Admire the Admiral

The second idea is Admiral Group (LSE:ADM). A leading UK insurance company, it offers everything from car insurance to pet insurance. Over the past year, its share price has risen 19%, outperforming the FTSE 100 average.

I’m not sure any of us said at school that we wanted to pursue a career in insurance when we grew up. It’s true that the business isn’t that exciting. However, similar to DS Smith, the business model has worked. By collecting insurance premiums, Admiral is able to generate a high level of positive cash flow. This helps ensure that the company has no liquidity problems. The most recent annual results showed a solvency ratio of 200%.

I also like the business in the long term because of the diversification of revenue. Of course, it is still an insurance company. But the different markets are not correlated with each other, for example, car insurance and pet insurance. This means that the company should be able to weather any storm in a particular business area.

One concern I have is the scope for high growth. The sector is mature. Although Admiral still has scope to continue to increase its market share, it will never be able to offer me large share price gains.

The story continues

I like both ideas and am thinking about adding them to my portfolio when I get some cash.

The post 2 boring but beautiful FTSE 100 shares to supplement my ISA appeared first on The Motley Fool UK.

Further reading

Jon Smith does not own any of the stocks mentioned. The Motley Fool UK has recommended Admiral Group Plc and DS Smith. The views expressed on companies mentioned in this article are those of the author and may therefore 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.

Motley Fool UK 2024