2 FTSE 100 shares I’d buy in July

Here, this Fool explains why he’s adding these two FTSE 100 shares to his portfolio, both for July and the years to come.

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2022 has proved to be a volatile time for the UK stock market. With a Covid-19 hangover in full swing, and macroeconomic pressures such as inflation, year-to-date the FTSE 100 has fallen by nearly 4%.

With this drop, I’m on the lookout for FTSE 100 shares I can add to my portfolio in July and hold for years to come. Here are two I’d buy today.

Unilever

My first pick would be FTSE 100 powerhouse Unilever (LSE: ULVR). The company owns over 400 household brands, including names such as Ben & Jerry’s, Persil, and Sure. In 2022, the stock is down 5%.

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Created with Highcharts 11.4.3Unilever PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

What I most like about Unilever is its strong brand recognition. With a third of the world using its products daily, this gives the firm, to an extent, more pricing power. While the cost of living is increasing, it’s less likely that consumers will cut back on the essential items that the business sells. Chief executive Alan Jope warned earlier in the year of inflationary concerns. However, with a portfolio of well-known brands, I think the firm could fare well against the threat of surging rates.

In its latest results, Unilever also highlighted the start of a €3bn two-year buyback scheme. It began the first €750m instalment of this back in March. And this should hopefully boost the FTSE 100 share’s price in times to come.

My biggest concern with Unilever is its debt, which currently sits at over €25bn. With interest rates rising, this may also make the debt more difficult to eradicate. This could hold the firm back in the future.

However, I still have faith in Unilever. Its strong brand presence and stable nature are key for me in these volatile times. As such, I’d happily add the stock to my portfolio today.

GlaxoSmithKline

My second FTSE 100 buy would be pharmaceutical giant GlaxoSmithKline (LSE: GSK). It’s a healthcare business that offers medicines and vaccines globally.

GSK is similar to Unilever in the steadiness it can offer during stock market woes. And the fact that its share price is up 12% in the first half of 2022 is evidence of this. Healthcare and medicines are a requirement regardless of the economy. This has only been highlighted by the pandemic.

Created with Highcharts 11.4.3GSK PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

The company also posted some strong results in its latest update. The first quarter saw its sales increase by 32% to £9.8bn. Within this, its biopharma division saw a 40% rise in sales, while its consumer healthcare unit saw a 14% growth.

These impressive results posted by Glaxo may be threatened in the months ahead by headwinds such as supply chain issues and rising costs.

Yet despite this, I would buy GSK today. With economic conditions set to potentially worsen, the pharmaceuticals firm is a useful addition to my portfolio. Its 4.2% dividend yield may also offer me some form of protection against rising inflation in the months ahead.

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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.

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

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