The next few weeks are set to see businesses update investors with their latest results. And with the way 2022 has played out, it’s no surprise some firms have been posting sub-par results. With this in mind, I’m keeping an eye on Lloyds (LSE: LLOY) shares.

It’s been a tough year for the business. The grim economic outlook has seen its share price fall by 14% in 2022. Across the last 12 months, it’s down a slightly more respectable 12%.

However, with the stock currently trading for around 43p, I think now would be a good time to add it to my portfolio. Here’s why.

Lloyds profits slide

It hasn’t been the smoothest ride for long-term Lloyds shareholders. And yesterday this continued as the bank announced that its pre-tax profits for Q3 fell by over 25% to £1.5bn.

The fall was largely pinned to provisions for bad debts and loan losses. And with these jumping to £668m, this indicates that Lloyds is protecting itself against customers who may default on payments in the future.

The release saw the Lloyds share price slip in the early hours of the morning. That said, it recovered to finish yesterday slightly up.

Silver lining

The large drop in profits clearly isn’t what Lloyds shareholders wanted to hear. But it’s not all bad news. One major positive was the 13% rise in net income due to rising interest rates. With rates in the UK currently sat at 2.25%, this has allowed the firm to charge customers more when they borrow from the bank. With this, Lloyds was also able to increase its net interest margins.

As inflation continues to soar and show no signs of slowing down as we head into 2023, there have also been predictions that rates could be hiked to as high as 4% in the months and years ahead. Going forward, this will continue to provide a boost for Lloyds.

What I also like about Lloyds is the passive income stream I can create by buying the stock. With a FTSE 100 average-beating 5% dividend yield, the stock seems like a smart play in current times. Its low price-to-earnings ratio of seven is also an attractive factor.

Housing market slowdown

Lloyds also gave a bleak prediction for the future state of the UK housing market. And as of one the largest mortgage lenders, this may spell trouble for the business. It predicted that UK house prices will fall by 8% next year, followed by a long period of stagnation.

However, this could be offset by its new rental venture, Citra Living, and it has predicted that demand is set to increase across the next five years.

Why I’d buy

There’s no doubt in my mind that Lloyds shares will be a slow burner. However, as a Fool, a long-term approach to investing doesn’t faze me. The short term may be volatile for the business as the UK braces itself for a tough year ahead. However, with the bank set to benefit from rising interest rates, along with its substantial dividend yield, I think the stock is a smart buy. While I don’t have any spare cash right now, if I did, I’d happily buy Lloyds shares at their current price.

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Charlie Keough has no position in any of the shares mentioned. The Motley Fool UK has recommended Lloyds Banking Group. 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.

It’s been a tough year for investors in Scottish Mortgage (LSE: SMT). Rising inflation as a result of supply chain issues, alongside the tragic war in Ukraine has seen the investment trust reverse some of the fine form that it’s produced in the past few years. In 2022, the Scottish Mortgage share price is down just shy of 40%. In the last 12 months, the trust has fallen nearly 45%.

It’s clear the next few months may be volatile when it comes to investing in the stock market. However, I think Scottish Mortgage shares, currently trading for well below 800p, could be a smart long-term addition to my portfolio.

The story so far

Scottish Mortgage made a name for itself back in 2020 when it rose an impressive 105% despite Covid-19 running rife on markets. However, since then, the trust’s growth has significantly slowed.

The main reason for its demise year to date is inflation. Rates have been on the rise across the globe. And as a result, markets have seen trillions wiped off their value. Inflation has at times been above 10% in both the US and the UK. And with rates showing no sign of slowing down, this could spell trouble for the Scottish Mortgage share price.

This is because during these volatile periods the worst affected assets are growth stocks, which Scottish Mortgage focuses on holding in its portfolio. Due to the volatility these stocks provide, investors tend to shy away from them during difficult times, instead switching to ‘safer’ alternatives.

Due to this, investors have been selling off their shares in the trust. With its top holdings including names such as Tesla and ASML, which are down 40% and 38% this year, it’s clear to see why Scottish Mortgage has suffered.

Is it time to buy?

Despite this, I think now may be the perfect time for me to buy the stock.

Firstly, the investment style adopted by its management team is one I can relate to. By this, I mean buying for the long hold.

Performance is measured over a five-year+ period, meaning the volatility that can be seen in the markets right now shouldn’t pose a threat. While past returns are not an indication of future performance, the last five years have seen the trust return an impressive 80%.

On top of this, I also like the diversification I get through buying Scottish Mortgage shares. As a retail investor, I get access to over 100 companies all through a single investment. For me, this is perfect.

One issue is its weighting to China. With some cracks beginning to appear in the country’s economy, this could leave the trust exposed. On top of this, as inflation rises in the months ahead, the trust may also see its price take a hit.

With this said, I’d happily open a small position in Scottish Mortgage today. Its focus on growth stocks combined with its long-term approach leads me to think I could see some healthy returns in the years ahead. I also think its weighting in China will bear fruit in the long run.

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Charlie Keough has no position in any of the shares mentioned. The Motley Fool UK has recommended ASML Holding. 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.

Lloyds (LSE: LLOY) shares have plummeted this week. With the stock down around 17% in 2022, it has fallen by 9% in the last five days alone.

The business has been a victim of the large drop we’ve seen in global markets in the last few days as a piling up of pressures continues to worsen the economic outlook.

However, I’d rush to add the FTSE 100 bank, currently trading for 41p, to my portfolio. Here’s why.

The story so far

Clearly, it’s been a tough year for Lloyds. Inflation has been on the rise. And as such, investors have lost confidence in the market. Rates have been above 10% in the UK and the US at times this year. And as a result, the FTSE 100 is down by over 8% in 2022.

The last five years have also followed a similar trajectory for Lloyds stock. In September 2017, a share in the bank would’ve cost around 68p. Today, it’s 40% lower.

Not all bad news

Despite its poor performance, I think now is a great time to load up on some shares.

The first reason for this is rising interest rates. To fight back against spiking inflation, the Bank of England has been hiking rates. Last week saw the central bank set the rate to 2.25%, a 50 basis points rise. There’s also large speculation that it could reach nearly 6% come next spring.

For Lloyds, this is a positive. This is because higher rates will allow the firm to charge customers more when they borrow from the bank. In turn, the firm will be able to increase net interest margins.

On top of this, I also like the stock because of its low valuation. It currently trades on a price-to-earnings ratio of 6.8, sitting well below the ‘benchmark’ of 10 and the average of its FTSE 100 peers.

Racing inflation also means I’m looking to create streams of passive income. With its 5.1% dividend yield, Lloyds offers this.

Lloyds concerns

With this said, there are a few issues I have with the stock.

Firstly, should interest rates reach as high as predicted, customers are more likely to default on payments.

On top of this, with its sole focus on the domestic market, Lloyds is more prone to the impacts we’re set to see as the UK economy weakens. The impact of the next few months could set Lloyds back in the near term.

As one of the UK’s largest mortgage lenders, the weakening housing market may also spell trouble for the business.

However, its new rental venture, Citra Living, will help it to offset risk through this diversification.

Why I’d buy

So, while the short term may be rocky for Lloyds, I see long-term value in the bank’s shares. The rise we’re set to see in interest rates will benefit it. And with its high dividend yield and low valuation, I think the stock is a smart buy below 45p. I’d happily add Lloyds shares to my portfolio today.

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Charlie Keough has no position in any of the shares mentioned. The Motley Fool UK has recommended Lloyds Banking Group. 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.

The trajectory of BT (LSE: BT-A) shares will no doubt have been leaving investors feeling gloomy in recent times.

The telecommunications giant is a FTSE 100 stalwart. And while it’s failed to excite for a while, I think its current price could be appealing. Here’s why.

BT share price history

Let’s start by assessing the performance of the stock.

Looking at the BT share price across the last five years isn’t pretty reading. Since then, its share price is down over 50%. The stock flirted with the 300p mark back then. Today, a share costs just 140p.

The last year has told a similar tale. In this time, it’s down 9%. And these losses have only continued in 2022.

The main reason for this is inflation. Rates going higher have seen investor confidence in the market go lower. While BT isn’t alone in its struggles as this year has seen a monumental amount wiped off global markets, it’s still not good news for shareholders.

On top of this, the business has also been in the news following staff strikes. The firm had been embroiled in discussions with the Communication Workers Union regarding calls for a pay rise amid the cost-of-living crisis. But BT’s offers haven’t satisfied the union.

Not all down and out

It’s clear to see BT has faced headwinds. However, I see potential with the stock.

Firstly, its dividend yield will most certainly come in handy during these times. For the year ended March 2022, its payout totalled 7.7p per share. At current levels, that equates to a 5.5% yield. And while it’s not inflation-beating, it offers me a greater hedge against inflation than the FTSE 100 average.

Another enticing factor is a potential takeover by French billionaire Patrick Drahi. He currently owns an 18% stake in the firm. And with the UK government providing Drahi an unexpected all-clear regarding his stake, this could open the door for a takeover attempt in the months ahead. This would provide the BT share price with a boost.

Of course, I don’t buy solely based on speculative factors such as a takeover that may or may not happen. You see, I also think there’s long-term value in the stock.

What I like about BT is the large infrastructure it already has in place. This provides it with some higher degree of pricing power. This was seen with raised prices for broadband and mobile contracts boosting its sales in the last quarter. With the continuous expansion of its Openreach network, which now reaches 8m homes and businesses across the UK, I think BT has solid foundations to excel.

My biggest concern is its debt. As of 30 June, its net debt stood at £18.9bn, which is a monumental sum. With interest rates rising, and with further hikes expected, this will make the debt harder to eradicate.

Is now the time?

So, is now a good time to load up on some shares?

I’d say yes. It’s been a tough year for BT. And I’d expect it to face further headwinds. While I have no spare cash right now, if I did I’d open a small position in the stock today. Its large infrastructure provides it with an edge. And its dividend yield and a potential takeover are also a draw.

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Charlie Keough has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

It’s been a turbulent few years for Rolls-Royce (LSE: RR) shares. The business has struggled in recent times as we’ve lurched from crisis to crisis. The stock took a massive tumble as the Covid-19 pandemic hit. Since then, it hasn’t really recovered.

This is largely due to the current macroeconomic environment. Stocks from a variety of industries have found themselves struggling this year as inflation and the Russia-Ukraine conflict have seen investors lose confidence in the market. This year alone, Rolls-Royce stock is down nearly 40%.

However, at their current price, Rolls-Royce shares look cheap. So, should I be rushing to add the FTSE 100 firm to my portfolio?

Rolls-Royce positives

Well, there are a few tempting factors for me.

Firstly, the business is heavily reliant on a flourishing aviation sector because it sells and services engines. This is the reason it took such a hit during the pandemic. However, with international travel edging ever closer to pre-pandemic levels, this should hopefully provide a boost for the firm going forward.

Elsewhere, Rolls-Royce is also set to benefit from an increased focus on defence spending. Its defence division is its second-largest revenue generator. And as the conflict in Ukraine has seen many countries across Europe place a greater emphasis on security, Rolls-Royce has already an order backlog for over £1bn just from the first half of this year.

This heightened awareness includes the UK, where new prime minister Liz Truss recently pledged to increase the defence budget to 3% of GDP by 2030, equating to £27bn of spending.

The business has also streamlined in the last few years, including a restructuring programme. While the months ahead could be tough as the UK stares a recession in the face, the streamlining could help the firm navigate this. The first half of the year also saw a £1.1bn free cash flow improvement. These are all encouraging signs.

Debt concerns

The biggest issue I see with Rolls-Royce is its debt, which as of 30 June stood at £5.14bn. The recent sale of ITP Aero to private equity firm Bain Capital for £1.5bn will alleviate the strain this debt places on the business. However, it’s still of major concern to me. On top of this, rising interest rates will only mean the debt becoming a steeper challenge to overcome.

The business is also engaged in a dispute with its workers as they bargain for better pay. Its latest offer was a 6.5% basic pay increase backdated to from 1 March. However, like all its previous offers, it was rejected. As a result, Rolls-Royce workers are now set to vote on industrial action in the weeks ahead. Should strikes occur, this would be negative for for Rolls-Royce and its share price.

Should I buy?

The shares look cheap. However, I won’t be buying them today. A greater emphasis on defence spending should see the firm prosper. But I think it faces too many headwinds in the months ahead to justify buying the stock right now. While I see long-term value here, I’m placing the stock on my watchlist. If its falls further, I could be tempted to open a small position.

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Charlie Keough has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

I’ve long been an advocate of investment trusts. I think they’re a great way for retail investors to gain exposure to a variety of stocks in a simple way. There’s also the bonus of, hopefully, some meaty long-term gains.

There are many trusts available to invest in. And many specialise in different areas. However, right now I have my eye on F&C Investment Trust (LSE: FCIT). Here’s why.

The lowdown

So, what exactly does this trust do? And how has it performed across this difficult year?

F&C invests in over 400 companies in 35 countries with the aim “to secure long-term growth in capital and income through a policy of investing primarily in an internationally diversified portfolio of publicly listed equities, as well as unlisted securities and private equity.”

The trust is run by fund manager Paul Niven, who’s been at the helm since 2014. Overall, it manages around £5bn worth of assets.

It’s been a tough year for the stock as it’s fallen around 9% year to date. This is largely due to the bleak economic environment. And with inflation on the charge across the globe, investor sentiment has been dented. The FTSE 100 is down 3% year to date. And in the US, the S&P 500 has plummeted by 18%.

Why I’d buy

With all of this, why would I buy the trust?

My main attraction is the diversification mentioned above. It holds hundreds of companies, including names like Microsoft, Amazon, and AstraZeneca.

By owning the stock, what I essentially do is offset my risk. This is because with a single investment I own a small slither of all of these companies. In the volatile times we’re experiencing, this is important for me.

What’s also an added bonus is the fact that its investment strategy aligns with mine. By this, I mean it buys for the long term. And as a Fool, I believe this is the best way to invest. While past returns are no indication of future performance, the last decade has seen the trust return 170% to its shareholders.

I also like the stock due to its stable nature. The trust is the oldest in the world, meanings it’s survived multiple crises. On top of this, it has increased its dividend payment for the last 51 years, highlighting its consistency.

The risks

With this said, there are risks with F&C.

They largely exist through its exposure to emerging markets, which make up 7.6% of its asset allocation. While these markets can offer great opportunities, they can also be volatile. And given the current economic conditions, these markets could suffer in the near future.

However, as mentioned above, this short-term volatility is of little concern to me. With a long-term approach, issues should be ironed out. In the long run, I back the trust to discover the opportunities that exist within emerging markets. I also like the diversification it could provide my portfolio with. While I don’t have the spare cash right now, if I did, I’d happily buy its shares today.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Charlie Keough has no position in any of the shares mentioned. The Motley Fool UK has recommended Amazon and Microsoft. 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.

Macroeconomic pressures continue to dampen investor sentiment. And it’s clear to see the impact that it’s having on the UK’s biggest supermarket chain’s share price.

However, I’m contemplating whether this is a chance for me to grab some cheap shares. Let’s find out.

Steady demand

My main attraction to Tesco is the relatively safe nature it provides as a business. The company clearly isn’t immune to the damning effects inflation is having, as we’ve seen. However, regardless of economic conditions, there will always be — to some extent — demand for Tesco’s products. While we’ve seen retail sales tumble this year, food has seen little change.

In its latest results released in June, this is highlighted through the 1.5% growth in UK & ROI sales seen compared to the same period last year. And on a three-year like-for-like basis, sales have grown 9.7%.

What also draws me to Tesco is its geographical diversification. While rising inflation is a common theme across many countries worldwide, the extent of damage is variable. With 9% growth in its central Europe sales year over year, this shows the firm isn’t solely reliant on domestic sales.

What’s also another pull to the stock given the current economic environment is its enticing dividend yield. At the time of writing, this sits at 4.4%. While this is far from inflation-beating, it does offer a greater return than the FTSE 100 average. On top of this, Tesco has paid out to shareholders consistently for the past five years. As a potential investor, this is an encouraging sign.

Budget competition

The obvious threat to Tesco is competition. With the cost-of-living crisis, it’s understandable that consumers will likely turn to cheaper, more affordable stores.

In light of this, yesterday it was revealed that discounter Aldi had overtaken Morrisons to become the fourth-largest UK supermarket.

Research group Kantar said Aldi’s sales rose by nearly a fifth in the 12 weeks to 4 September, giving the German firm a near-10% market share. With the grocery market worth an estimated £131bn, both Aldi and Lidl have a combined 16% slice of it. With costs looking like they’re set to continue to rise, this could spell trouble for Tesco.

The firm has hit back at discounters with its Aldi Price Match and Low Everyday Prices products. For Q1, the overall distribution of these rose 19% year on year. However, with inflation ramping up in Q2, we will have to wait and see just to what extent these moves have deterred shoppers from switching.

Am I buying?

So, is now the time to buy?

Well, despite the hit it’s taken this year, I see Tesco as a solid investment. Despite consumers opting for cheaper alternatives, with its dominant position I think it’s hard to write off the superstore. Its dividend yield is also an added bonus. While its next set of results may provide a better picture of the impacts of inflation, I’d be willing to open a small position in Tesco today.

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Charlie Keough has no position in any of the shares mentioned. The Motley Fool UK has recommended Tesco. 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.

Income stocks are a great way for me to put my money to work. Not only do they provide a passive-income stream, but they also require minimal effort.

With inflation sitting at the near-10% mark in the UK for August, this means my stagnant cash is losing value every day. And as such, I’m on the lookout for some cheap income stocks that can help me protect my money.

Here are two I’m strongly considering.

Rio Tinto

First on my list is Rio Tinto (LSE: RIO). The stock has fallen by over 5% across the last year, with it also down by just over 1% in 2022. However, in the last month the Rio Tinto share price has jumped 3%.  

At its current price, the stock offers an attractive dividend yield of 10.8%. While inflation is predicted to peak potentially above 20%, this yield is currently above the UK figure. This is a great way for me to mitigate the possibility of my cash eroding.

Despite cutting its interim dividend to $2.67 per share, the firm’s total payout for the first half still equated to its second highest ever!

On top of this, the stock looks cheap. It trades on a price-to-earnings ratio of 5.3, comfortably below the ‘value’ benchmark of 10. This is also below the average of its FTSE 100 peers.  

With a focus on iron ore, what could pose an issue for the business is the falling demand from China. The country accounts for half of the world’s steel output, so with ongoing Covid struggles alongside a weakening economy, this could spell trouble for Rio Tinto.

However, with a positive long-term outlook for commodities, I think Rio Tinto shares would be a solid buy for me today.

Taylor Wimpey

Another stock I have my eye on is homebuilder Taylor Wimpey (LSE: TW). Unlike Rio Tinto, it’s been a dire 12 months for the stock, as its share price has fallen around 36%. This year alone, it’s down nearly 40%.

With its demise, Taylor Wimpey’s shares offer a meaty 8.5% dividend yield. This isn’t above the UK inflation rate, of course. But the passive-income stream it will create will be valuable to my portfolio in the months ahead.

It’s been a turbulent few years for homebuilders. After making solid recoveries following the pandemic as the housing market boomed, 2022 has seen them suffer as a bleak economic outlook has seen market sentiment plummet.

Despite this, Taylor Wimpey’s half-year results were strong. The business managed to grow its operating profit on top of the impressive 2021 it had. It also saw its operating margin rise from 19.3% to 20.4%.

The biggest challenge the business is set to face in the months ahead is rising material costs as inflation continues to spike. Supply chain issues may also hinder its operations. However, with these as short-term concerns, I’d strongly consider buying Taylor Wimpey shares today.

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Charlie Keough has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

Lloyds (LSE: LLOY) shares are on a surge. Despite being down 9% year to date, this week the stock is up around 6%. The last 12 months have seen it rise by 7%.

In times gone by, a share in the FTSE 100 bank would set you back as much as 65p. Today a share costs just over 45p.

For this price, I’d rush to add Lloyds shares to my portfolio. Here’s why.

Lloyds share price history

Before we start, let’s take a look at why the Lloyds share price has fallen in the last few years.

The stock entered 2020 trading at 63p. However, with the pandemic causing markets to fall across the globe, the year saw Lloyds stock drop 42%, and at times to as low as 25p.

Since then, it has made small recoveries but has failed to sit above the 50p mark for a noticeable period.

With racing inflation, this year has told a similar tale. Consumers are tightening their belts and markets are losing value as rates continue to rise. Recently, it was predicted that inflation could spike to as high as 22%.

Why I’d buy

So, with such a bleak outlook, why would I buy Lloyds shares?

Well, the first reason is rising interest rates. To counteract rising inflation, the Bank of England has been hiking rates. Its most recent hike was to 1.75%. However, there have been predictions this could go as high as 3%-4%.

For Lloyds, this is good news. And this is because the firm can charge customers more when they borrow from it. Its net income rose 12% in the first half of the year, with interest rates likely playing a part in this. It also saw its net interest margin increase as the firm raised its outlook for the year.

With this said, it’s not just the potential of higher interest rates that attracts me. The stock currently trades on a price-to-earnings ratio of 7.5. This is below the ‘benchmark’ of 10. And to me this signifies that Lloyds is undervalued.

A smart play with rising inflation would also be to create a stream of passive income. And with a dividend yield of 4.7%, Lloyds offers this.

Lloyds concerns

Even with this, there are a couple of factors that are of concern.

While rising interest rates are positive, they could also see customers default on their payments. For Lloyds, this would clearly be bad news.

On top of this, as one of the UK’s largest mortgage lenders, Lloyds could also be affected by the UK housing market showing signs of a slowdown. In its latest results, homebuilder Barratt Developments said that the number of homes being reserved was now below pre-pandemic levels. As a result, it expects house price growth to slow.

However, I’d still buy Lloyds shares today. The inevitable rise in interest rates will benefit the bank. And with its low valuation and dividends, the stock would be a strong addition to my portfolio. While a housing market slowdown may pose a threat, I think the moves Lloyds is making in the rental market will help offset this. For 45p, I’d rush to buy.

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Charlie Keough has no position in any of the shares mentioned. The Motley Fool UK has recommended Lloyds Banking Group. 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.

As a retail investor, it’s been tough to navigate markets this year. While still feeling the side effects of the Covid-19 pandemic, we’ve also been hit with red hot inflation alongside the Russia-Ukraine conflict. However, this hasn’t deterred me from looking for investment opportunities. And in fact, I’m on the lookout for FTSE 100 stocks that I can hold for the long term.

Here are two I’d buy today and hold for years to come.

Consumer goods powerhouse

First on my radar is consumer good company Unilever (LSE: ULVR). The business owns over 400 brands, including the likes of Dove, Persil, and Sure. The stock has remained pretty much stagnant across the last 12 months, rising by just over 1%. In 2022, the stock is down under 1%.

While this may not seem great, given the economic conditions, this is fairly impressive, in my opinion. This year many stocks have seen sizeable chunks wiped off their market values. However, Unilever has been able to fight back against pressures such as inflation.

For me, this is important. And this is the case for a few reasons. Firstly, by buying Unilever shares I’m adding strong and recognisable brands to my portfolio. A third of the world uses Unilever products daily, highlighting the group’s everyday appeal.

What this also brings is, to a degree, pricing power. For the first half of the year, Unilever saw its revenue grow 8.1%, in part due to the 9.8% increase in prices for the period. This shows the business has the robustness to navigate difficult conditions. When looking for a long-term hold, this is a major attraction.

I also like the way Unilever is putting an emphasis on returning value to shareholders. This is predominantly in the form of a €3bn buyback scheme.

There are concerns I have surrounding the business, namely its debt. And with interest rates on the rise, this could spell further trouble. However, with its robust nature, I’d buy Unilever shares today and never look back.

Investment stalwart

My second choice would be Legal & General (LSE: LGEN). A financial and insurance services company, this year has seen it struggle. Despite rising 1% over the last six months, the Legal & General share price is down 15% year to date. Over the last year, it’s down 5%.

The main thing drawing me to this stock is its dividend yield. At the time of writing, this sits at an impressive 9.2%.

This hedges me to a large degree against inflation. And with plans to increase payouts in the future, the long-term outlook is also positive.

Like Unilever, Legal & General is a reputable brand. For the first half of the year, the business saw its operating profit and earnings per share rise by 8%. Within the period, it also made strides with its five-year (2020-2024) plan.

The months ahead could be rocky for the firm as consumers may be forced to cut back on spending. However, as a long-term buy, this short-term issue is of no concern to me. With an optimistic outlook, I’d happily buy some shares today.

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Charlie Keough has no position in any of the shares mentioned. The Motley Fool UK has recommended 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.