A lot of share prices have had a rough few months. That is true among some of the blue-chip names of the FTSE 100 as well as lesser known companies.
But not all shares have fallen. Both among risers and fallers, I see some attractive options for my portfolio right now. As a believer in long-term investing, here are three shares I have either bought or would consider buying right now if I had spare money to invest.
Unilever
The investment case for consumer goods giant Unilever (LSE: ULVR) is fairly simple in my view.
It operates in market segments that are likely to see resilient demand from billions of users, such as shampoo and laundry detergents. The company’s collection of well-known and distinctive brands such as Marmite helps keep customers loyal.
That gives the firm pricing power. It has used that to combat rampant inflation. In the first half, for example, although volumes fell 1.6% compared to the prior year period, the company saw underlying sales growth of 8.1% thanks to higher prices.
Inflation remains a risk to profit margins, which decreased in the first half. But I think in the long term demand should be resilient and Unilever’s pricing power should be good for profits.
British American Tobacco
I already own shares in British American Tobacco (LSE: BATS). The company behind products such as Lucky Strike and Vuse is a cash flow machine thanks to the high margins and resilient demand of the tobacco industry.
Over time that could change. Cigarette smoking is in long-term decline and the company has a large debt pile that could eat up free cash flow.
However, I think its experience in managing changing markets across the globe for many decades already could help the tobacco manufacturer face such challenges. It has been expanding its non-cigarette business rapidly. Its portfolio of premium brands gives it pricing power.
Despite rising 27% over the past year, British American Tobacco shares still offer a dividend yield of 6.6%. That is higher than many other FTSE 100 shares. I regard it as attractive.
Legal & General
While those two consumer goods firms have seen their share prices increase in the past year, it is a different story at financial services powerhouse Legal & General (LSE: LGEN). The Legal & General share price has declined 16% over the past year.
But as a long-term investor, I feel upbeat about the outlook for the firm. I expect demand for financial services to remain strong. The company has a long-established brand that can help it win new clients and retain existing ones, without having to spend very heavily on marketing.
Weakening investor confidence could lead to some customers withdrawing money from investment products, hurting profits. But I see Legal & General as a well-run company that I expect to benefit from strong customer demand over the course of the coming years.
These FTSE 100 shares yield 8% and I recently bought them for my portfolio.
