3 UK shares to consider as a long-term investment for retirement

To retire comfortably, I’m searching for the best UK shares for long-term growth.

The UK market’s uniquely positioned to provide a stable foundation for long-term investment. Some of the top British stocks in 2025 have been around for over 100 years, delivering consistent value to investors since the 17th century.

Such well-established companies offer an excellent foundation to build on.

I’ve identified three FTSE 100 shares that fit the criteria, each boasting a strong dividend history, global reach, broad diversification and a sustainable business model.

Unilever’s (LSE: ULVR) a consumer goods giant with a a £114.2bn market-cap and a diverse portfolio of globally recognised brands. The shares are up from around £10 in 2005 to £45 today, with revenue in 2023 reaching almost £60bn. Over the past 20 years, it’s held a consistent yield of around 3% with annual dividend growth of around 5% a year.

A key attraction is its stable and defensive nature. Historically, it’s remained resilient during economic downturns.

But it still faces challenges. Rising inflation has revealed flaws in its model, with cash-strapped consumers opting for lower-cost alternatives. If it fails to address changes in economic behaviour, it risks losing market share to competitors.

It recently announced a restructuring effort to save £670m which includes 7,500 job cuts and the sale of its ice cream brands Ben & Jerry’s and Magnum.

Diageo‘s (LSE: DGE) a worldwide distributor of premium alcoholic beverages, flaunting a portfolio of famous brands such as Guinness, Smirnoff and Johnnie Walker. Its focus on emerging markets in Asia and Africa has helped drive profits in recent years.

For over 20 years, dividends have grown at an average annual rate of 5.4%, achieving a yield between 2% and 4%.

However, the company risks losses as inflation has led to consumers shying away from premium brands. Revenue declined from £17.1bn to £16.1bn last year, bringing down net income by 17.5%. This trend’s exacerbated by the growing popularity of healthier, alcohol-free lifestyles among younger generations.

To avoid losing market share, a shift in focus to healthier products may be necessary.

Tesco’s the country’s leading supermarket chain, with over 4,270 stores across Europe. It commands a dominant market share and enjoys high turnover. As a highly defensive stock, it benefits from steady consumer demand even when the economy dips.

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