2 UK shares I’d buy for a retirement portfolio

2 UK shares I’d buy for a retirement portfolio


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Some UK shares look like no-brainer buys to help me build wealth and retire later in life. Two picks I’d love to buy when I next have some spare cash are Unilever (LSE: ULVR) and Taylor Wimpey (LSE: TW.).

Here’s why!

Consumer goods king

There’s a high likelihood you’ve used one of Unilever’s popular products across food, cleaning, and personal care products. For context, some of its brands include Comfort, CIF, Domestos, Ben & Jerrys, and more.

With roots stretching back nearly 100 years, the business has grown into a giant, serving 190 countries and millions of consumers. It has an excellent track record of performance and shareholder return to fall back on. However, it’s worth noting that the past isn’t necessarily a guarantee of the future.

From a bearish view, the price tag that comes with Unilever’s premium branded goods is a concern. This is because during times of economic difficulty, consumers may move towards cheaper essential ranges to help conserve cash. This could dent performance and payouts, and something I’ll keep an eye on.

With such a storied track record, the business knows a thing or two about navigating tough times and emerging at the other side better off. What I currently like is the fact Unilever is now streamlining its brand portfolio. It’s decided to ditch lesser-performing brands, and invest more money into the ones serving it better. This could boost profitability and returns.

From a returns view, the shares offer a dividend yield of 3%. However, it’s worth remembering that dividends are never guaranteed. Nevertheless, I can see this level of return growing.

Overall, Unilever’s market power, vast presence, track record, and defensive ability through its varied product range make it an attractive prospect for me.

Building homes

Being one of the largest residential developers in the UK makes Taylor Wimpey look a great stock to help me build wealth.

The fact it builds houses offers it a certain amount of defensive ability. This is because everyone needs somewhere to live.

Despite this, when economic conditions are tricky, like now, due to higher interest rates and inflation, house builders can come under pressure. Mortgages are harder to come by for consumers, which impacts sales. Completions and profits come under pressure from inflation. So there are bearish aspects I’m aware of that could hurt Taylor’s performance and returns.

Speaking of returns, a dividend yield of close to 6% is significantly higher than the FTSE 100 average of 3.6%. Furthermore, the shares trade on a price-to-earnings ratio of 15, which isn’t the cheapest, but there’s room for the shares to grow, meaning the shares could become more expensive down the line.

Finally, Taylor Wimpey is in a great position to benefit from the housing imbalance in the UK. At present, demand is outstripping supply. The UK government recognises this, including the newly elected Labour government. Initiatives to boost house building could help Taylor’s performance and returns grow for many years to come.



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