Best UK shares: 3 FTSE 100 shares I’d invest in today for safe, yet robust returns

The prices of some of the best UK shares have run up quite a bit, but their credentials are strong too. I’d consider buying them today. 

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Buying defensive shares is one of the key fail-safe tactics for investing in uncertain times. If we as investors may have been unconvinced of this in the past, the latest stock market crash and the time since has been a good reminder of defensives’ merit. Not only have many of them sustained performance, they have also seen impressive share price increases, making them among the best UK shares to hold in our portfolios now.

The reason for their attractiveness isn’t hard to understand. Their share prices tend to be less volatile than their cyclical counterparts because their revenues are dependable even in recessions. On the downside this means that they don’t tend to show the superlative returns that cyclicals might during booms. But over time, they may still turn out to be clear winners. And we at the Motley Fool like stocks that will make gains for investors over time. These are also some of the best UK shares to buy for investors with low-risk thresholds. 

Best UK shares to buy

One of these defensive shares is the FTSE 100-listed Halma, which provides life-saving technologies. These include environmental protection technologies, medical devices, and safety equipment like security sensors and fire detection. It’s in a financially strong place that ensured it doesn’t have to draw on the government’s financing facility. It expects profits to shrink this year, but this is an exceptional year. I think Halma will ride out the year relatively unscathed. It has a high earnings ratio of 46 times, but I think that’s the price today for a safe, growing, and dividend-paying stock. In other words, it’s the price for one of the best UK shares around today.

Passive income stocks: our picks

Do you like the idea of dividend income?

The prospect of investing in a company just once, then sitting back and watching as it potentially pays a dividend out over and over?

If you’re excited by the thought of regular passive income payments, as well as the potential for significant growth on your initial investment…

Then we think you’ll want to see this report inside Motley Fool Share Advisor — ‘5 Essential Stocks For Passive Income Seekers’.

What’s more, today we’re giving away one of these stock picks, absolutely free!

Get your free passive income stock pick

Spirax Sarco Engineering is another FTSE 100 stock whose recent share price movements bear no recollection of the stock market crash. On the contrary, it’s near all-time highs. Despite some softening in its financials recently, it’s obvious why investors like SPX. In its recent update, SPX pointed to potential revenue stability. There are two reasons for this. One, its customers pay for its services with their operating budgets rather than their capital ones. So even if investments take a hit in the recession, the company isn’t impacted. Two, its revenues are from sectors less impacted by Covid-19. For this reason alone, I think it would be one of the best UK shares to buy today.

The FTSE 100 speciality chemicals company Croda International is also one of the best UK shares to buy for reasons similar to HLMA and SPX. Its share price too is around all-time highs as investors flock to safer stocks. It too boasts of robust financials. It has also recently completed an acquisition that’s expected to enhance its R&D capabilities. 

The takeaway

All these stocks are comparatively pricey, but as some of the best UK shares around I’d be better hedged when I buy them and be assured capital gains. If you are still unconvinced, I’ll leave you with these alternative investment ideas as well. 

Investing in AI: 3 Stocks with Huge Potential!

🤖 Are you fascinated by the potential of AI? 🤖

Imagine investing in cutting-edge technology just once, then watching as it evolves and grows, transforming industries and potentially even yielding substantial returns.

If the idea of being part of the AI revolution excites you, along with the prospect of significant potential gains on your initial investment…

Then you won’t want to miss this special report inside Motley Fool Share Advisor – 'AI Front Runners: 3 Surprising Stocks Riding The AI Wave’!

And today, we’re giving you exclusive access to ONE of these top AI stock picks, absolutely free!

Get your free AI stock pick

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.

Manika Premsingh has no position in any of the shares mentioned. The Motley Fool UK has recommended Croda International and Halma. 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.

More on Investing Articles

Investing Articles

3 high-yield dividend shares to consider buying for a retirement portfolio

Dividend shares can provide retirees with regular passive income in their golden years. Our writer picks out three with yields…

Read more »

Investing Articles

Tesla stock has halved. Could it now double – or halve again?

After a wild few months for Tesla stock, Christopher Ruane weighs some pros and cons of the investment case. Could…

Read more »

Investing Articles

Does it make sense to start buying shares as the stock market wobbles?

Does a rocky stock market make for a good or bad time to start buying shares? This writer reckons it…

Read more »

Passive income text with pin graph chart on business table
Investing Articles

£15k of passive income a year? It’s possible with the right dividend strategy!

To figure out how much dividends are needed for a lucrative passive income stream, investors must understand which strategies get…

Read more »

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

As US markets wobble, I’m listening to Warren Buffett!

The long career of billionaire investor Warren Buffett has included plenty of market turbulence. Here's what our writer's learnt from…

Read more »

UK money in a Jar on a background
Investing Articles

5 shares yielding over 5% to consider for a SIPP

Christopher Ruane introduces a handful of FTSE 100 and FTSE 250 shares he thinks an income-focussed SIPP investor should consider.

Read more »

Investing Articles

Here’s how an investor could invest a £20k ISA to target £1,500 of passive income per year

Can a £20,000 ISA throw off close to £30 per week on average of passive income when invested in blue-chip…

Read more »

Investing Articles

As gold hits $3,000, this FTSE 100 stock is primed for blast off

As Western institutions scramble to get as much gold as they can lay their hands on, Andrew Mackie believes this…

Read more »