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2 FTSE stocks I’ll ‘never’ sell!

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Amid some chopping and changing, there are a few FTSE stocks I can never see myself selling. There are several reasons for this, but its often because they’re hard to replace, or I see them benefiting from long-term growth trends.

So, without further ado, here are two FTSE stocks I never plan to sell.

Unilever

Unilever (LSE:ULVR) is a British multinational in the fast-moving consumer goods space. It’s value lies in the products it owns.

The London-based giant sells in 190 countries and says that 3.4bn people use its products every day. Unilever has defensive qualities because of the strength of the brands it owns, such as Hellmann’s, Marmite, Heinz, Persil, and Lifebuoy.

In fact, the group claims to have more than 400 household names under its umbrella. Some 13 of these brands deliver more than £1bn in revenue every year. Moreover, 13 brands in Kantar’s top 50 global brands are Unilever’s.

Some of Unilever’s biggest brands:

Product Reputation
Ben & Jerrry’s One of the world’s most-loved ice cream brands
Domestos Universally-known cleaning product
Dove Widely popular and affordable personal care
Magnum The UK’s most popular ice cream (by some distance), according to The Independent
Lifebuoy A soap that you see everywhere in the world, apart from the UK

The thing is, brands are highly aspirational, and Unilever should be well positioned to benefit as more and more of the world’s population are dragged out of poverty. In fact, the global middle class is expected to grow and reach 5.5bn by 2030. 

Brands also give Unilever defensive qualities, as customers often continue to buy branded goods even when times are bad. If the forthcoming recession is particularly bad, that won’t be good for sales, but broadly, defensive stocks outperform the market when times are tough.

Because of the above reasons, I’m planning on holding Unilever for the very long run.

Smith & Nephew

We have an ageing global population. And by 2050, Europe is projected to have the oldest median age, 47 years, and there will be more than 2bn people over the age of 60. This will undoubtedly increase demand for medical procedures.

One company at the forefront of the medical device industry is Smith & Nephew (LSE:SN). The last few years — where health services have focused on fighting pandemic rather than elective surgeries — have been tough and the share price reflects that.

But I see the general trend as being a positive one going forward. In the short term, there’s a considerable backlog of elective procedures in the UK. What’s more, there’s political determination to bring these numbers down. 

But in the long run, it seems inevitable that Smith & Nephew’s medical devices will be increasingly in demand. And that can only be seen as a positive. With operations in over 100 countries around the world, it’s got a truly global reach too.

Inflation is a near-term concern, but I’m holding this stock for the long run. In fact, I’m buying more.

The post 2 FTSE stocks I’ll ‘never’ sell! appeared first on The Motley Fool UK.

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James Fox has positions in Unilever and Smith & Nephew. The Motley Fool UK has recommended Smith & Nephew 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.