Two bargain FTSE 100 shares to buy now

Much of the FTSE 100 has dropped over the past few months, but here are two shares that I think are trading at a bargain price right now based on their financial performance and dividend payout history.

Profit growth

The GSK (LSE:GSK) share price is down 2% in the last year, and a staggering 19% in the last month! It is currently trading at 1,515p.

Like many stocks, GSK’s shares plummeted during the pandemic followed by a steady recovery. But the pharmaceutical giant has recorded strong quarterly revenues of around £7bn for the last two quarters, and posted a healthy net profit margin of 12% in the last quarter.

Last week it raised its profit guidance following increased sales of its shingles vaccine, so is forecasting sales to grow 6-8% in 2022. This could be an indicator that the current dividend yield of 5.2% is here to stay.

The recent spin-off of Haleon, which will focus purely on consumer healthcare, could be cause for concern, however. The “demerger” means GSK is no longer operating in this historically profitable market segment.

However, with much of the world now acutely aware of the importance of vaccines and specialty medicines, GSK’s consistent revenues and profit growth make it a great buy for my portfolio.

Dividend king

Aviva (LSE:AV) is trading at 467p at the time of writing. This is down 13% compared to the share price a year ago.

Potential investors might be worried about this, but they shouldn’t be. Its most recent dividend of 14.7p per share is the highest since April 2019, and the dividend yield is currently at 7.1%. The indication to shareholders is that we can expect low to mid-single digit growth in dividends per share from 2024 onwards. These payouts are well above the FTSE 100 average dividend return of between 3-4%.

The Aviva share price jumped this week following the announcement of an interim dividend of 10.3p per share. We were also told about a proposed share buyback scheme being launched. This suggests that Aviva itself sees the current share price as an attractive one.

There are more reasons to be confident when looking at the underlying financials. The insurer has recorded profits every year over the last five years – all in excess of £1.5bn. This is a positive sign that dividends will continue, but I need to remember that dividends are subject to company performance and market conditions.

It’s not all good news, though. A half-year loss of £633m was announced, which is considerably higher than the 2021 half-year loss of £198m. “Adverse market movements” was the reason offered for the result and, given that this is seemingly outside of its control, could be a concern for Aviva.

Overall, these FTSE 100 mainstays both have strong underlying financials. I think they’re trading at a great price right now, and I’m strongly considering adding to my position on both.