This is why I plan to hold FTSE 100 stock Unilever for 20 years

Unilever plc’s (LON: ULVR) brands are present in almost every UK household and many abroad. That’s what makes it such a good long-term stock, says Edward Sheldon.

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When discussing Unilever (LSE: ULVR) shares, one of the first things that often comes up is the group’s world-class portfolio of brands. Believe it or not, its brands are present in 98% of households across the UK.

Yet I’m not sure people realise just how powerful the group’s portfolio actually is – it really is quite extraordinary when you take a closer look. Here’s a look at how many Unilever products I use on a day-to-day basis.

Morning routine

Let’s start with my typical morning. One of the first things I do when I wake up every morning is make myself a cup of tea. My tea brand of choice? The legendary PG Tips – a Unilever brand. After my tea, I take a quick shower and use Unilever owned-Dove Men shower gel to freshen up, and then follow this up by spraying on some Dove Men deodorant. At this stage of the day, I haven’t even started work yet and I’ve already used three Unilever products.

Late morning and lunch

Later in the morning, I usually make myself some toast. While I do tend to rotate what I put on my toast, Marmite – another Unilever brand – can be in the mix. And at lunch, I’ll generally make myself a sandwich. Here, there’s a good chance that a little bit Colman’s mustard or Hellmann’s mayonnaise will be involved – two more legendary Unilever brands.

Evening

While I am trying to watch my diet a bit these days, I do love some ice cream in the evenings after dinner, especially in the summer. Now, if I had to pick one ice cream brand, I’d probably say that Unilever-owned Ben & Jerry’s is my favourite. But to be honest with you I also love a Cornetto, a Magnum, Viennetta, Carte d’Or and plenty of Wall’s ice creams. And you know what? Unilever owns all of these brands. In other words, if I’m eating ice cream, there’s a good chance Unilever is profiting.

There’s more…

It doesn’t stop there though. I also wash all of my clothes with Unilever-owned Persil detergent. Moreover, my wife insists that I give the bathroom a quick wipe down every now and then so I regularly give the sink a quick spray with Cif, and squirt some Domestos in the toilet – both Unilever brands.

Additionally, my wife also uses a number of Unilever personal care products herself, including TRESemmé hair products, Simple face wash products, and Radox shower and bath products.

Overall, I think you’d find at least 10-15 Unilever products in our house at any one time, if not more, with many of these products being used every single day.

Brilliant long-term stock

And that, ultimately, is one of the key reasons I plan to hold Unilever shares for the long term. Whether the economy is expanding or contracting, Unilever’s trusted products will be used in our household – and nearly every other household in the UK – every single day. That’s what makes Unilever such a brilliant ‘sleep-well-at-night’ stock.

The shares may appear a little expensive by traditional valuation measures, but in my view, that kind of brand power is worth a premium.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Edward Sheldon owns shares in Unilever. The Motley Fool UK owns shares of and 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.

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