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For a comfortable retirement, I’m looking for the best UK stocks for long-term growth.
The UK market is uniquely positioned to provide a stable base for long-term investment. Some of Britain’s top stocks in 2025 have been around for over 100 years, delivering consistent value to investors since the 17th century.
Such well-established companies provide an excellent foundation on which to build.
I pointed out three FTSE 100 stocks that fit the criteria, each boasting a strong history of profitability, global reach, broad diversification and a sustainable business model.
| Company | Dividend Yield | Revenue Growth | Vital Powers | Hazardous Materials |
|---|---|---|---|---|
| Unilever | 3.5% | ~7% | Global reach | Inflation |
| Diageo | 3.1% | ~6% | Brand loyalty | Economic sensitivity |
| Tesco | 3.3% | ~4.4% | Market dominance | Industry competition |
The consumer goods giant
Unilever‘s (LSE: ULVR) consumer goods giant with aa £114.2bn-mark-cap and a diverse portfolio of globally recognized brands. Shares have risen from around £10 in 2005 to £45 today, and revenues by 2023 are expected to reach around £60bn. Over the past 20 years, it has held a constant yield of about 3% with annual dividend growth of about 5% per year.
A key attraction is its stable and protective nature. Historically, it has remained strong during recessions.
But it still faces challenges. Inflation has exposed the flaws in its model, with cash-strapped consumers opting for less expensive alternatives. If it fails to respond to changes in economic behavior, it risks losing market share to competitors.
It recently announced a £670m cost-saving restructuring effort that includes 7,500 job cuts and the sale of its ice cream brands. This is Ben & Jerry’s again The Magnum.
Global brand leader
Diageo‘s (LSE: DGE) global distributor of premium spirits, boasting a portfolio of popular brands such as Guinness, Smirnoff again Johnny Walker. Its focus on emerging markets in Asia and Africa has helped drive profits in recent years.
Over 20 years, dividends have grown at an average annual rate of 5.4%, yielding between 2% and 4%.
However, the company risks losses as inflation has led consumers to stay away from premium brands. Revenue fell from £17.1bn to £16.1bn last year, a 17.5% drop in revenue. This trend is fueled by the growing popularity of a healthy, alcohol-free lifestyle among younger generations.
To avoid losing market share, a shift in focus to healthier products may be necessary.
The retail giant
TescoThe country’s leading supermarket, with more than 4,270 stores across Europe. It controls a high market share and enjoys high profits. As a very defensive stock, it benefits from continued consumer demand even in economic downturns.
Revenue for 2023 came in at £68.19bn with an estimated operating margin of 3.8%. The dividend yield sits at around 4.3% and is well covered by cash flow and a long history of payouts.
Recently, it has been under pressure to improve sustainability and reduce carbon emissions, leading to higher operating costs and threatened profitability. While this may limit short-term price growth, the long-term benefits are worth it.
Consolidated returns
When thinking about retirement, the power of compounding returns cannot be underestimated. It makes it easy to make a small investment into a big one. Also, focusing on multi-year (rather than monthly) returns helps avoid panic selling during small dips or short-term volatility.
I believe that the above three stocks should be considered for investors who want to achieve long-term growth.
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