Looking for quality stocks? I’d buy these two FTSE 100 shares

first_img “This Stock Could Be Like Buying Amazon in 1997” Stuart Blair | Monday, 29th June, 2020 | More on: DGE ULVR Image source: Getty Images. Our 6 ‘Best Buys Now’ Shares Simply click below to discover how you can take advantage of this. Enter Your Email Address Looking for quality stocks? I’d buy these two FTSE 100 shares Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee.center_img Stuart Blair has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Unilever. The Motley Fool UK has recommended Diageo. 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. The stock market crash has resulted in a number of FTSE 100 shares looking extraordinarily cheap. But as Warren Buffett states, “It’s far better to buy a wonderful company at a fair price, than a fair company at a wonderful price”. As such, it seems advisable to look at some of the highest quality FTSE 100 shares. I particularly like these two.This FTSE 100 share oozes qualityThe first FTSE 100 share that piques my interest is Diageo (LSE: DGE). This multinational beverage and alcohol company operates in more than 180 different countries and has over 200 different brands. These include big names such as Guinness, Smirnoff, and Baileys. These brands have attracted significant customer loyalty over the years, and I believe that this will still be the case in 40 years’ time.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Trading at a price-to-earnings ratio of 22 and a price-to-book ratio of 9, Diageo shares cannot be classed as cheap. Nevertheless, considering its quality, its current share price of around 2,700p seems a fair price to pay. After a 15% drop year-to-date, it could also be a case of buying the dip.On the other hand, the share is not completely risk-free. Due to Covid-19, the pubs and restaurants that sell Diageo drinks remain closed, and their return date remains unknown. This is likely to decrease Diageo profits this year. In addition, Diageo also has around £13bn of debt. While this is not unsustainable at the moment, it could be a problem should customer demand remain lower for a significant period of time. Although these shouldn’t be a major problem due to Diageo’s quality, it is worth considering before investing in Diageo shares.The perfect defensive share?Another FTSE 100 share with significant customer loyalty is Unilever (LSE: ULVR). Unilever owns some of the most well-known brands in the world, present in 98% of households across the UK. Examples include Dove, Magnum, and Lynx. Such a large variety of brands should help ensure the longevity of the company.Once again, Unilever shares are not cheap. They have a P/E ratio of 22.8 and are in fact up around 4% year-to-date. But unlike other FTSE 100 shares, Unilever has not seen a decrease in sales over the pandemic. This is due to a number of household staples, which ensures the company’s resilience in a market downturn. Unilever has also seen an increase in sales in its hygiene sector.Another positive is a reliable dividend which yields around 3.2%. This has a dividend cover of 1.35. While the dividend is not a huge amount, it’s still one to watch for income investors. This is because there seems very little risk of a cut, unlike many other FTSE 100 shares these past few months.In summary, while both these shares may seem expensive, I think their quality seems to justify their price. This is especially useful at the moment, when quality should help protect stocks from another market downturn. I’d have no hesitation in buying these shares today! Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. See all posts by Stuart Blairlast_img read more