UK Value 2026: Low Multiples, High Payouts, Energy-Finance-Consumer

Goal: a balanced GBP income-and-value portfolio of twelve FTSE 100 names trading on single-digit to low-teens earnings multiples with dividend yields of 4-8%, bought while gilt yields sit at their highest since 1998 (30-year above 6%, Reuters, 1-2 Oct 2026) and the Bank of England holds at 3.75% but signals a November hike if energy prices stay high (FT, 24 Sep 2026). FTSE 100 at 10,462 on 4 Oct 2026 after a 1.7% drop on budget-tax fears for banks. Horizon 3 years, risk class balanced. Currency risk: all quotes in pence sterling (GBp); base currency GBP, so a EUR or USD investor takes sterling risk (GBP/USD 1.324, EUR/GBP 0.850) – note that Shell, BP, Rio, HSBC and BAT earn mostly in USD, which cushions sterling weakness. Rules: equal-weight start, reinvest dividends, trim anything above +40%, do not chase tobacco or oil above the sell zones. This is not a growth portfolio and not a gilt substitute: capital can fall 20% in a UK fiscal scare.