One example is Unilever (LSE:ULVR). It’s a giant in the consumer goods industry and it’s unusually cheap right now.

Consumer staples

Unilever has been one of the FTSE 100’s most consistent sources of dividends. And that’s not a big surprise – it makes the products people use every day.

That means demand is generally pretty stable, even in a recession. People might not always go on holiday, but it takes a lot for them to stop buying deodorant.

There is a downside to this. A bit like my wardrobe, Unilever’s products never go out of fashion – but they also never come into fashion.

As a result, it can be hard for the firm to generate meaningful growth. It’s already huge and the market it competes in isn’t really getting bigger.

The other risk is that it’s very easy for customers to switch to other products. So Unilever has to work hard constantly to keep them coming back.

Those are real challenges. But the FTSE 100 firm has some key strengths when it comes to generating growth and fending off competition.

Brand power

Unilever doesn’t just make stuff that people use. It has some of the top products in various categories, with brands including Domestos, Persil, and Vaseline.

This matters for more reasons than you might think. The obvious point is that these are names that consumers associate those names with quality. 

In some cases, having the right brand can be even more important than having the best product. But there’s another reason why it’s valuable.

Unilever’s products battle for shelf space with competitors. And there’s a big advantage to being in the best position to attract customers. Suppliers have to negotiate with retailers for these spaces. But having a strong brand portfolio is a big advantage on this front. Retailers want to stock Unilever’s products to attract customers. And that gives the company more power when it comes to negotiating.

Why is the stock down?

All of this sounds pretty good, so why is the stock down? The short answer is that not all brands are created equal. Some of Unilever’s brands have been performing less well than others. And the company has been making moves to divest these.

Most recently, the food division has been sold. But it will take time and won’t be as straightforward as investors were hoping.

Nonetheless, a falling share price means higher dividend yields. Investors who buy 702 shares for £30,807 right now can earn £1,200 a year.

That’s a 3.9% dividend yield. And it’s extremely unusual to see Unilever shares available to buy with that kind of starting return.

Ultimately, the company looks like it’s getting itself into a stronger competitive position. If that’s the case, it’s got to be worth a look at today’s prices.

Income investing

For investors looking for income, Unilever is a really interesting stock. It has long-term strengths in an industry where demand is relatively durable.

It’s unusual to find shares in this kind of business going cheap. But that might be the opportunity that’s on the table right now.

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However, the latest Fundsmith factsheet (for April) shows that Unilever has recently been sold. So, why might Smith have sold it? And should investors consider following the star fund manager and offloading the stock?

A dodgy deal?

In terms of why Smith may have sold the Footsie stock, I see a few potential reasons.

First, we have the recently announced ‘mega-merger’ between McCormick and Unilever’s food business (Knorr, Hellmann’s, etc). This has created some uncertainty.

This deal is quite complex – Unilever shareholders will own 55.1% of the combined entity, while Unilever will get 9.9%, and McCormick shareholders 35%. And there are some concerns around the transaction’s structure, long path to closing (it’s not expected to close until mid-2027), antitrust risks, and integration risks.

It’s worth pointing out that when the deal was announced in late March, Unilever shares fell sharply. The market’s reaction suggests that investors weren’t impressed (note that large-scale M&A in the consumer goods industry generally hasn’t worked well in the recent past).

One other thing worth noting here is that ratings agency S&P Global revised its outlook for Unilever to ‘negative’ upon news of the deal. It cited reduced headroom stemming from lower scale and diversity of operations if the deal closes.

Oil price uncertainty

Another reason could be oil prices. Ultimately, consumer goods companies are quite vulnerable to higher oil prices.

Not only are a lot of Unilever’s home care products (Domestos, OMO, etc) petrochemical-based, but a lot of its packaging is based on petroleum derivatives.

On top of this, there are transportation costs. So, Unilever will need to find ways to manage these increased costs.

A new long-term risk

Taking a longer-term view, one other risk that has emerged is potential economic weakness in India (a key growth market for the company). Amid the rise of powerful new AI tools like Anthropic, parts of India’s workforce are starting to see material job layoffs.

If this trend continues, it could hit middle class spending in India. This could lead to reduced demand for Unilever’s brands.

Time to consider selling?

Is it time to consider getting out of Unilever shares given all these risks? That’s hard to say.

Obviously, the investment case isn’t as clear as it used to be. But there are still things to like here.

For example, we have a company with a whole portfolio of trusted brands that is relatively recession-resistant. We also have a good CEO at the helm in Fernando Fernandez (he’s been at the company since 1988 and was previously CFO).

Additionally, there’s a decent dividend yield on offer at the moment. It’s currently near 4%.

Personally, I think long-term investors should consider holding on to the shares. In the near term, however, other stocks may offer better returns.

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Using a Cash ISA to build up an emergency fund isn’t a bad strategy. But trying to build real wealth this way creates a meaningful and unnecessary opportunity cost. Even the very best ISAs offering up to 5% interest today still fall short of the stock market’s 8% long-term average.

So, with that in mind, which UK stocks are the experts buying right now?

AstraZeneca – the UK’s crown jewel

Few companies on the London Stock Exchange attract as much institutional conviction as AstraZeneca (LSE:AZN).

The pharmaceutical giant has transformed itself into a global oncology powerhouse, with blockbuster medicines like Enhertu, Tagrisso, and Calquence driving revenues toward an ambitious $80bn target by 2030.

Even in 2025, the top line expanded by another 9% to a record $58.7bn. And with 20 Phase 3 trials currently under way, the pipeline powering AstraZeneca’s future growth remains pretty impressive.

But risks are real. President Trump’s Most Favoured Nation drug pricing push, which aims to tie US prices to cheaper international rates, could meaningfully squeeze AstraZeneca’s most profitable market.

At the same time, the company is also navigating through an ongoing anti-corruption investigation in China’s pharmaceutical sector. And combined, the group’s position in both of these crucial markets could soon come under pressure.

Unilever – the unsung stalwart

Another top pick from the pros in 2026 is Unilever (LSE:ULVR), which seemingly combines robust growth with solid defensive traits that could help reduce portfolio volatility in an uncertain market environment.

Under CEO Fernando Fernández, Unilever is in the middle of its most dramatic transformation in decades.

Having already spun off its ice cream business in late 2025, the group announced in March 2026 that it would combine its entire food division, which contains brands like Hellmann’s, Knorr, and Marmite, with US spice giant McCormick in a $44.8bn deal.

What remains will be a pureplay beauty, personal care, and home products business built around Power Brands like Dove, Axe, and Domestos – categories that carry higher margins and faster structural growth than food.

However, it’s important to highlight that the McCormick deal hasn’t gone down particularly well with shareholders of both companies. Large-scale mergers are complex and have a habit of incurring lots of unexpected costs. And since Unilever will still retain a 65% equity stake in the newly formed business, weak performance in the future could have knock-on effects.

Even if the deal goes through as planned, there remains the challenge of consumers potentially trading down to cheaper non-branded alternatives to Unilever’s products, limiting the group’s pricing power – a key risk to be aware of.

The bottom line

No stock is ever without risk, even FTSE 100 titans like AstraZeneca and Unilever and I can’t say they’re ‘the best’ to buy today. Yet when weighed against their potential long-term rewards, both companies look like potentially top stocks for investors seeking a more defensive way to grow their wealth that could still outperform a savings account in the long run.

That’s why I think both companies deserve a closer look.

The post With £9,633.30 to invest, are these the best UK stocks to buy now? appeared first on The Twelfth Magpie.

But first-quarter results released Thursday (30 April) make me think this could be one for cool long-term heads to consider. So what were the highlights? They include:

• Underlying sales growth of 3.8%.
• Full-year outlook for 4%+ sales growth.
• New €1.5bn share buyback.

Long-term strength

Currency effects did result in a 3.3% fall in total turnover, coming in at €12.6bn. But that 3.8% underlying growth in sales value was made up of a 2.9% volume increase — and only 0.9% in price rises. I rate that as a solid sign of Unilever’s long-term strength.

I’m thinking Unilever shares have what it takes as a defensive investment. The key is that the company has such a wide range of product lines covering so many essential categories. And its international reach provides geographic defence against localised disruption.

Actually, considering the worldwide fallout from the Middle East crisis, I’d say this quarter shows superb global resilience. I think it’s summed up by the opening words from CEO Fernando Fernandez.

We have started the year well with volume-led growth driven by our Power Brands and a positive performance across all business groups. There is broad-based momentum across our emerging markets business, with a strong performance in India, and a good recovery in Latin America following the decisive actions we have taken in that region.

Buyback too

The new €1.5bn share buyback shows how much surplus capital Unilever is throwing off, even in times of economic pressure. It’s starting right away, and management intends to complete it by July.

And looking forward, Unilever expects to return a total of €6bn in buybacks between 2026 and 2029. We’re also looking at a full-year dividend forecast at 4.1%, which is pretty decent. And future repurchases should help keep per–share measures like the dividend yield going.

Do Unilever shares sound like the kind of thing it would be nice to tuck away in a Stocks and Shares ISA and just forget for a couple of decades? Diversification is a vital part of long-term investing. And I reckon Unilever could be considered as a cornerstone for any ISA, whatever an investor’s main strategy.

Uncertain year?

One thing does count against it at the moment. And that’s uncertainty over the upcoming sale of the company’s foods business to McCormick. It’s not expected to conclude much before mid-2027. And that’s if a shareholder vote, regulatory approvals, and other formalities work out.

Is it a mistake? And will Unilever get enough cash from the transaction? Investors do appear split over the deal. Forecasts did show solid earnings growth in the next few years — but the foods disposal means they’re up in the air now.

Investors should expect some volatility, I think. But with Unilever shares lowly valued compared to historic averages, now could be a great time to consider adding some to your long-term ISA holdings.

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Food on the block

Like the broader stock market, Unilever’s shares slumped after the Iran war began. With it came fears of higher costs and weaker consumer spending power as oil prices surged. Inflation and its impact on global interest rates and economic growth could be catastrophic.

But that’s not the whole story behind the FTSE firm’s decline. Investors also reacted badly to news on 31 March that Unilever was selling its Foods division to McCormick & Company for $44.8bn.

The move makes sense to me, allowing the company to focus better on its Home Care and Personal Care divisions. This carries advantages like the opportunity to lean into faster-growth categories, products with better profit margins, and regions with booming population and wealth levels.

It follows the divestment of the firm’s ice cream division last year. So what’s the problem on this occasion? Put simply, the Food unit is more valuable than Unilever’s remaining operations, prompting the re-rating of its share price. Investors were also unimpressed by the structure of the deal — just $15.7bn of the deal in cash, with the remainder settled in shares in the spun-off business.

But I view the news as a net positive for Unilever, provided it goes through. So are its shares a buy?

Downgrades to come?

Let’s first look at this in the context of the firm’s most recent financial statement. In 2025, Unilever recorded underlying sales growth of 3.5%, below its multi-year target of 4% to 6%. And it’s warned that the top line could continue to underwhelm — this year, it expects growth to “be at the bottom end” of the range due to “slower market conditions“.

The trouble is these predictions were made before the Iran war kicked off. So there’s a good chance that sales will miss even this modest target. It’s also possible margin forecasts will be downgraded as cost pressures increase. Unilever predicted “a modest improvement in underlying operating margin” from the 20% last year.

In this landscape, Unilever’s share price could fall further over the coming months. And particularly if the recent Middle East ceasefire crumbles. But for long-term investors, I think the consumer goods giant could be worth a close look.

A FTSE 100 bargain?

Make no mistake: Unilever is a high-quality business, with ‘power brands’ like Dove soap and Persil detergent driving growth. It also has strong exposure to emerging markets, where consumer spending is rising especially rapidly.

What’s more, its shares trade at a slight discount to their historical average. The forward price-to-earnings (P/E) ratio is 16.5, below the 10-year average of 17-18. This doesn’t make Unilever shares a white-hot bargain, but it provides an added little sweetener for investors. Taken altogether, I think this is a top FTSE 100 share to consider following recent price weakness.

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Since then, large-cap stocks have partially bounced back. But is this just the calm before the real storm? And if so, how can investors protect their portfolios today?

Why the UK might be in serious trouble

With around 15%-20% of global oil & gas supply now disrupted due to the war, energy prices are surging, and Britons are already feeling the pinch at the petrol pump.

But it’s not just higher oil & gas prices that people need to worry about. Around one third of the globally traded fertiliser supply has also been severely impacted just as British farmers enter the biggest fertiliser application period of the year for winter cereals. And with April also the main planting season for mainline vegetable crops, the timing of this supply chain disruption is less than ideal.

Put simply, food and energy price inflation looks like it’s about to make a comeback. And with the economy already quite fragile, the risk of a recession’s rising.

Don’t panic

The economy’s in a tight spot. But the situation, while challenging, doesn’t guarantee a stock market crash. In fact, compared to most global indices, the FTSE 100’s actually far more insulated to the current headwinds. After all, most of its constituents operate in recession-resistant industries including energy, mining, defence, and healthcare.

At the same time, a large chunk of their earnings actually stems from international markets. As such, if the worst-case scenario does occur and the UK economy takes a tumble, many large-cap companies could comfortably absorb this impact.

Therefore, while the risk of a full-blown stock market crash is real, a correction seems far more likely.

Still, corrections can be painful. So what can investors do today to ensure their portfolios are better protected?

What the experts are doing

Beyond general diversification and ensuring portfolios are sticking within their risk-tolerance limits, institutional analysts are hunting for buying opportunities within all the ongoing market chaos. And here in the UK, several names are emerging as popular defensive favourites, including Unilever (LSE:ULVR).

The consumer brands powerhouse has been busy transforming and optimising its product portfolio to bolster profit margins over the medium term.

While the escalation of the UK cost-of-living crisis does create some headwinds, management’s being far more disciplined in its spending, including a recent hiring freeze and ongoing efforts to unlock significant operational savings.

As such, the analyst team at JP Morgan has just reiterated its Buy recommendation with a 5,700p share price target, implying a 36% potential upside from current levels even with all the external macroeconomic challenges.

However, while that certainly sounds promising, success isn’t guaranteed. Executing a large-scale transformation in the middle of an economic wobble is a challenging task. And with management pulling back on spending, it could make hitting earlier growth targets more difficult.

Nevertheless, for investors seeking shelter from wider market volatility, Unilever shares, while not risk-free, could indeed be worth considering in the current climate. And it isn’t the only defensive stock on my radar right now.

The post Is the FTSE 100 heading for an epic stock market crash? appeared first on The Twelfth Magpie.

The war in Iran continues, but lately investors have decided to look on the bright side. They believed Donald Trump when he said peace talks are happening, and ignored Iran when it said the opposite. They’ve absorbed so many shocks lately, they’ve decided to keep calm and carry on. Which is always a pretty solid strategy.

FTSE 100 volatility brings opportunity

Since 2020, investors have seen off the pandemic, Russian invasion of Ukraine, cost-of-living crisis and US tariffs. Markets fell every time, but quickly bounced back. Nobody wants to get locked out of the post-Iran recovery, when it comes.

Buying shares either side of this year’s Stocks and Shares ISA contribution deadline on April 5 nevertheless takes nerve. There’s a chance markets have further to fall. At The Motley Fool, we’ve learned that nobody can second guess where the stock market is going. Shares may crash next week, they may recover at speed. Nobody knows.

The best option is to feed in money whenever investors have cash to hand, then hold for the long term, to give the shares and reinvested dividends time to compound and grow. Today’s volatility is a good opportunity to buy stocks at a reduced price, and with a higher starting yield.

The Unilever share price has plunged

One stock worth considering is consumer group Unilever (LSE: ULVR). For years, it was seen as a bright, shining FTSE 100 blue-chip, but lately its star has dimmed. It’s been hit by the cost-of-living crisis, the attentions of activist investor Nelson Peltz, and a sense that the business just got too big and sprawling to manage.

On 12 February, the board said it expected 2026 sales growth to be at the bottom end of its underlying range of 4%–6%, due to slower market conditions. As the Middle East explodes and oil price climbs, those conditions must look a lot worse today.

The market has also responded poorly to news that Unilever will sell most of its food business, including Marmite, to US-based McCormick. This follows the sale of its ice cream division last year. Personally, I think this could be positive, as it allows Unilever to focus on its personal care and beauty brands, which have bigger margins.

Also, I’ve been worried about its food brands for years, thinking the likes of Hellmann’s, Knor, Bovril, Pot Noodle, Colman’s and Horlicks look vulnerable to changing consumer trends. Weight loss drugs have sharpened that concern. The market begs to differ though. Unilever shares have fallen 21.7% in the last month, and now trades at levels seen almost a decade ago.

The plus side is that they look much better value, with a price-to-earnings ratio of 15.5. I wouldn’t say it’s cheap, but this is well below its historic P/E of around 24. The dividend yield has crept up to 4.4%. I think it’s worth considering, and can see plenty more great value FTSE 100 stocks to consider. Unilever is far from the only company trading near a 10-year low today.

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The stock was down after news of plans to separate its food business. But a complicated deal might have created an interesting opportunity.

What’s happened?

Unilever has been on a restructuring mission. It spun out its ice cream division at the end of 2025 and is now divesting its other food businesses.

On Tuesday (31 March) Unilever announced a deal to sell its food brands to McCormick. The implied valuation is $44.8bn. 

This values the food business at an enterprise-value-to-EBITDA (EV/EBITDA) multiple of 13.8. But that’s not the interesting bit.

The stock fell 7% on the news. And the decline implies an EV/EBITDA multiple of 12.7% for the remaining parts of the company. 

That means the more attractive divisions are trading at a lower multiple than the ones it wanted to lose. That’s the bit worth noting.

The reason is the nature of the deal. It’s more complicated than investors might have been hoping for and that’s created some uncertainty.

The deal

Officially, Unilever is selling its food businesses to McCormick. But it’s not as straightforward as the FTSE 100 firm getting cash for its businesses.

Of the $44.8bn, only $15.7bn is cash. The rest of it is in stock – in a company featuring the businesses Unilever was trying to get rid of.

The company itself is going to own almost 10% of the new enterprise when the deal closes next year. And its existing shareholders will own 55%.

There’s also a potential antitrust issue. Merging with McCormick creates a firm so big that it might have implications for competition.

That creates uncertainty over what it will take to get the deal done. All of this makes it less attractive than a straightforward cash sale.

Complications

These might look like minor issues, but they’re actually quite significant. They affect both Unilever and its shareholders. 

The company won’t be able to sell its stake in the combined entity for at least a year. So it’s going to be stuck with that for some time.

Given the firm’s aim of moving away from these businesses. It’s a step in the right direction, but it’s not what investors might have hoped for.

Shareholders will be able to sell their shares immediately. But if they all try to do this at the same time, the price might well crash. 

That means their ability to realise the $44.8bn headline figure depends on the stock market. And it’s therefore far from guaranteed.

Opportunity?

Unilever’s strategy of focusing on its most promising divisions has been a good one. But the latest deal is more complicated than shareholders might like.

The stock market’s reaction to the deal is understandable. Despite this, it might have created an unusual opportunity for value investors to consider.

Unilever shares don’t often trade at low multiples. And the current situation isn’t one that’s likely to show up again. 

As a result, I think the stock is well worth considering. There’s uncertainty, but that can often be what creates the best investment opportunities.

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What might that mean for the Unilever share price down the road?

There is a strategic logic here

Personally I will be sad to see Unilever get rid of its food business.

After all, the firm itself is a combination of the Lever brothers’ detergent business, associated with the iconic Port Sunlight model village on the Wirral, and Dutch margarine maker Unie close to a century ago.

Unilever got out of the margarine business in 2017 but its food division remains a nod to its corporate heritage.

It is also a large part of the company today. Last year it delivered €13bn of revenue, just over a quarter of the FTSE 100 firm’s total revenue.

But it had the slowest revenue growth of Unilever’s four operating divisions.

Other large consumer goods companies have streamlined their portfolios to focus on higher growth potential businesses in recent years.

Unilever took a similar move last year when it spun off the Magnum Ice Cream Company. There is a logic to further reducing its footprint in the food business.

Could a transaction create value for shareholders?

That logic is debatable, though.

Going back to the original merger between Unie and Lever Brothers, the idea was that scale could help. For example, it would give the combined business more heft when negotiating with retailers.

I think that remains true today, even though Unilever would still be a substantially sized business even if it gets out of foods altogether.

Rivals have exited some businesses to focus on what is often described as the higher margin beauty business. That logic may seem to apply to Unilever, owning as it does brands like Dove.

Personally, though, I am not convinced by that. Last year, the food business and personal care business had the same underlying operating margin. Both the beauty and wellbeing and personal care businesses had markedly lower underlying operating margins.

The dust is still settling

Given its strong brand stable, I could see Unilever attracting potentially attracting other, unsolicited, bids for its food division.

The company’s smaller size after the transaction may make it more vulnerable to a takeover bid itself, I reckon.

The $16bn it is set to get in cash from the transaction will help its balance sheet and could fund strategic acquisitions.

Unilever will also own almost 10% of the new firm, so it will be in the foods business as a shareholder. Unilever shareholders will get the majority of the new firm.

That deal structure means the transaction may not affect the Unilever share price much in the short term. It seems to me that Unilever is getting a fair price.

At 19 times earnings, the company’s share price is not particularly attractive to me, so I have no plans to invest.

The post Could getting out of the food business help the Unilever share price? appeared first on The Twelfth Magpie.

Geopolitical tensions are the highest they’ve been in some time. That’s bad for the economy, but it might be good for investors.

Crisis? What crisis?

Covid-19 brought huge amounts of uncertainty and share prices crashed as a result. But this meant dividend yields shot up.

Opportunistic investors were able to take advantage of the uncertainty. And returns for those who bought dividend shares then have been terrific.

The situation today isn’t quite the same – conflict in Iran isn’t the same as a global pandemic. But the overall uncertainty level is extremely high.

With the US focused on the Middle East, some commentators are concerned that things might escalate elsewhere. This includes Taiwan and Eastern Europe.

That might make the situation the most uncertain since the pandemic. And that doesn’t sound like a good time to consider buying stocks. 

The stock market, however, is forward-looking. As a result, a number of stocks already look cheap and dividend yields have been rising. 

Where to look?

The likes of BP and Shell are obvious potential candidates at a time like this. Both stocks look cheap with oil prices above $95. 

I doubt, however, that this is going to remain the case. The US sees higher oil prices as a short-term necessity for long-term political stability. 

Whether or not that comes to pass is another question. But I’m doubtful about how long oil prices can remain at these levels. 

I think investors need to look past the next few weeks and months. Instead, there’s a chance to focus on companies that can do well for years.

One example is Unilever (LSE:ULVR). The stock is down 14% in the last month and the dividend yield has hit 3.75% as a result. 

Opportunities

In recent years, the chance to buy Unilever shares with that kind of dividend yield hasn’t come around often. So it’s worth paying attention when it does. 

Investors briefly had the chance a couple of years ago. But the business is arguably in a much stronger position than it was back then. 

One thing that hasn’t changed is the company’s scale. This gives it a big advantage when it comes to distribution and this is still firmly intact.

The firm’s brand portfolio, however, is much stronger than it was. Unilever has divested some of its weaker lines to focus on its more valuable ones.

That’s resulted in improved sales growth metrics in recent years. So I think the opportunity might be even better than it was during Covid-19.

Long-term thinking

Investors who can look past short-term challenges can do really well in the stock market. And I think that’s the case with dividend shares right now.

The risk for Unilever remains the prospect of customers trading down to cheaper alternatives. And that’s especially true in an inflationary environment. 

The company, though, has some key long-term advantages that put it in a good position to deal with this. These include its brands and its scale.

This is why the firm has such a good record of returning cash to shareholders. And I think the chance to buy it with an unusually high yield is worth taking seriously.

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