2 FTSE 100 shares I’m buying for July and beyond

Finlay Blair is adding these two FTSE 100 shares to his portfolio and holding them for years to come. Here’s why.

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The UK stock market has had a volatile 2022 with last month being particularly dire. However, my outlook is still optimistic. I am adding these two FTSE 100 shares to my portfolio for both July and for years to come.

An exciting property website

With 2.5bn visits each year and just under 90% market share, Rightmove (LSE:RMV) is the UK’s leading online property portal.

The share price has fallen 30% in 2022. Despite this fall in the share price, I still believe the company is positioned well enough for the future to merit a place in my portfolio.

Rightmove saw a 31.4% increase in browsing time in 2020 as COVID restrictions confined people to armchairs. Even as restrictions ease, the company continues to see an increase in listings and visits. This indicates to me that this online shift in the housing market is permanent.

The FTSE 100 share sits in a strong financial position. It is currently debt-free, which is an important attribute in an economy with rising interest rates. Alongside this, it has a hefty £48m cash position that comfortably covers all the company’s short-term liabilities.

Rightmove returned £239m to shareholders in 2021 through dividends and share buybacks. The lack of debt means cash can get funnelled back towards shareholders instead of being kept for interest payments.

However, some risks need to be considered. Interest rates are rising and mortgages are becoming more expensive. As a result, I believe the volume of houses on the market will decrease and Rightmove will see a drop in listings.

While this is a very real risk, I believe Rightmove’s dominance in a growing market is more significant. Regardless of what happens in the next year, I believe adding this share to my portfolio will deliver good returns over the next few years. That is why I’m adding this share to my portfolio with my next chunk of savings.

A FTSE 100 giant

Consumer goods company Unilever (LSE:ULVR) owns over 400 household brands worldwide. With a market position in food, beauty, and home care products, the company has a large position in several consumer sectors.

I believe that this FTSE 100 company will be able to handle the threat of inflation due to its large brand presence. Household names such as Ben & Jerries, Lynx, and Dove have been on supermarket shelves for decades and I think consumers are unlikely to shun them as the cost of living increases.

This may not be the greatest value share I could be adding to my portfolio this year. It is currently trading at a price-to-earnings ratio of 18.9, which I believe is fair but not a bargain. And a €25.5bn debt load is also a slight concern to me.

However, this investment is all about longer timeframes to me. I am confident that Unilever will retain its position in the consumer market for decades to come and I see now as the perfect time for me to get a slice of a high-quality company. As a result, I’m also adding this stock to my portfolio.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be considered so you should consider taking independent financial advice.

Finlay Blair has no position in any of the shares mentioned. The Motley Fool UK has recommended Rightmove and Unilever. 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.

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