The good news is that the stock market is not just a place for people with large sums of cash. In fact, it is possible to start buying shares and building a portfolio for just a few pounds a week.

In this example, I will demonstrate that using the sum of £20 a week.

Time can be the investor’s friend

In isolation, £20 might not seem like a worthwhile sum with which to invest. But that amount squirreled away works out at over £1,000 a year.

Multiply that by 10, 20, 30 or more based on how many decades of active investing you may have ahead of you and you start to see how even fairly modest sums of money can add up over the long term.

But that is if the money simply sits doing nothing. What if, thanks to share price gains and dividends, it can actually generate a return over time?

There is a risk doing that, of course. Share prices can also fall. But say someone puts in £20 a year for 30 years and it ticks away in the background of their daily life, compounding at 5% annually. After 30 years, they ought to have a portfolio worth over £69,000.

Setting realistic goals

I think 5% is an achievable goal in today’s market with a diversified portfolio of blue-chip shares (diversification matters to reduce the overall impact on the portfolio of any one share performing poorly).

In fact, I think an investor could potentially do better over the long term, depending on how well they select shares to buy and what price they pay for them.

Other things can matter too, such as fees and commissions eating into the portfolio. So it is important to choose carefully when selecting a share-dealing account, Stocks and Shares ISA or trading app.

Here’s a share I recently bought for the long term

One share I added to my portfolio recently has promising long-term prospects, I reckon.

It is consumer goods maker Reckitt Benckiser (LSE: RKT). Dividends are never guaranteed at any firm, but Reckitt’s cash generative business looks promising in terms of keeping its dividend well-funded. It currently offers a juicy 4.7% dividend yield.

The share price in recent years has done poorly. In fact, it is down 26% just since the start of this year. The Middle East conflict threatens to push up the cost of making and shipping household products, posing a risk to profit margins. Reckitt also faces ongoing risks from historical product liability lawsuits.

Still, that fall has pushed the Reckitt share price down to just 9 times earnings. That was attractive enough for me to start buying shares in the Dettol maker.

I plan to hold them for the long term as I think its portfolio of strong brands and proven business model offer ongoing opportunity not properly reflected in today’s share price.

Should you invest £5,000 in Reckitt Benckiser Group Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Reckitt Benckiser Group Plc made the list?

Christopher Ruane owns shares in Reckitt Benckiser Group.

The post Start buying shares with just £20 a week? Here’s how even that could help someone build wealth appeared first on The Twelfth Magpie.

The answer could be millions of pounds by the time you reach retirement age. Let me explain.

Three key elements determining long-term outcomes

There are three decisive factors when it comes to calculating how big a Stocks and Shares ISA might grow to be: how much money is invested in it, at what growth rate, and for how long.

Say someone starts putting in £800 a month when they are 27 and does so for four decades, before retiring at 67 (the State Pension age currently being phased in). If they can compound that ISA by 5% annually, it should be worth £1.2m by the time they are 67.

If they can achieve a compound annual growth rate of 7%, it will be £2m. With a compound annual growth rate of 9%, the ISA ought to be worth £3.4m by the age of 67.

Small-seeming differences can have large impacts

Did you notice something about those numbers? A couple of percentage points here or there may not seem significant at first. But over time, they can add up to the point that they make a huge difference.

That is because of the long-term impact of compounding. Based on that, squeezing out every bit of performance while carefully managing risks is important. That involves paying close attention to fees, charges, commissions and other costs when choosing a Stocks and Shares ISA to use.

Clearly though, the choice of shares owned in the ISA over time also plays a critical role.

One share to consider for its long-term prospects

Let me stick with the 7% example from above. Is that a realistic goal over the long term? I think it can be if an investor focuses on trying to construct a well-diversified portfolio of blue-chip shares.

One of the shares I think merits consideration for the performance I believe it may deliver over the coming decade or two is FTSE 100 consumer goods maker Reckitt Benckiser (LSE: RKT). Reckitt is the force behind well-known household brands including Dettol and Finish.

The market for consumer goods is resilient. Thanks to its portfolio of premium brands, this multinational manufacturer is able to command a pricing premium.

In turn that is good for profits and helps fund a dividend. The dividend yield on the share currently sits at 4.7%.

But over the past five years, the Reckitt Benckiser share price has fallen 31%.

That partly reflects a disastrous infant nutrition acquisition and historical product litigation expenses. While both relate to past activity, they remain a risk to medium-term financial performance at the company.

However, the share price fall means that the company now sells for less than 10 times earnings. That looks like an attractive valuation for the blue-chip business, as far as I am concerned.

Should you invest £5,000 in Reckitt Benckiser Group Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Reckitt Benckiser Group Plc made the list?

Christopher Ruane owns shares in Reckitt Benckiser.

The post Here’s how putting £800 a month into a Stocks and Shares ISA from age 27 could fund a £2m retirement! appeared first on The Twelfth Magpie.

But here’s the thing: that money won’t come from their historical National Insurance (NI) payments. It’ll come from those of someone else.

The reality

The UK State Pension operates on a contributory system — it’s not a savings pot, it’s a transfer from current workers to pensioners.

Every £1 you receive comes from someone else paying NI today. You generally need 35 qualifying years of NI payments to get the full amount.

The problem?

The dependency ratio is shifting. In 1960, there were roughly six workers per pensioner. By 2050, that’s projected to drop to 2.3 workers per pensioner.

More pensioners, fewer workers.

The triple lock guarantees the State Pension rises by the highest of inflation, wage growth, or 2.5% annually. This is popular, but potentially unsustainable.

The IFS warns the system faces “significant challenges given the UK’s ageing population” and calls for reform. Mercer reports the UK pension gap will rise from £6trn to £25trn by 2050.

What this means for you

Reports suggest three-quarters of UK workers aren’t on track for a moderate retirement income (£32,700 annually).

If you’re relying on the State Pension as your main retirement income, you might want to consider building an additional income stream.

Both a Stocks and Shares ISA or SIPP can help investors build a retirement pot with significant tax advantages:

• ISA: No income tax or capital gains tax on returns, £20,000 annual contribution limit.
• SIPP: 20% tax relief automatically (claim 25% more gross), up to £60,000 annual allowance, plus 25% withdrawal tax-free.

Even £200 a month invested can compound exponentially. Depending on the total return your investments achieve, here’s what that could look like:

This table shows the gross value before tax. Using a SIPP, you’d actually pay just £160 for £200 invested thanks to 20% tax relief.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

A good starter stock to consider

Reckitt Benckiser (LSE: RKT) is an example of a solid starter stock to look at. It’s a large, well-established UK consumer goods company with strong fundamentals and a long history of rewarding shareholders.

When building the initial foundation of a portfolio, it makes sense to consider companies you are familiar with. If the brand is well-known and you see it every day, it probably enjoys steady, consistent revenues.

As the producer of top names like Dettol, Nurofen, Lysol, and Air Wick, it’s fair to say Reckitt fits that criteria.

Here are a few quick financial points:

Still, risks should never be ignored. Consumer goods face stiff competition, input cost inflation, and currency volatility.

Selling healthcare products adds additional risk, exhibited recently by the legal case involving Reckitt subsidiary Mead Johnson’s Enfamil baby formula.

Final thoughts

Retirees without a private pension need to ask themselves: are you ready to rely solely on a system where the next generation supports you?

The tax benefits of an ISA or SIPP can make a huge difference. The large annual allowances and tax-free growth can compound your pot significantly.

If you’re 35 years from retirement, just £200 a month with market-average returns could grow to over £300,000 by retirement age.

Should you invest £5,000 in Reckitt Benckiser Group Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Reckitt Benckiser Group Plc made the list?

Mark Hartley owns shares in Reckitt Benckiser.

The post Relying on the State Pension for retirement? Here’s why it might not be enough appeared first on The Twelfth Magpie.

Reckitt shares have slumped

Consumer goods group Reckitt (LSE: RKT) is a huge global operator. Every day, more than 30m people in nearly 200 countries buy its household, health and personal care products such as Dettol, Finish, Nurofen and Durex.

It was always seen as one of the more solid long-term income and growth blue-chips, until its disastrous purchase of Mead Johnson Nutrition in 2017 triggered a blizzard of US lawsuits over its premature baby formula. Adjusted operating profits have been pretty flat too.

• 2025 – £3.54bn
• 2024 – £3.48bn
• 2023 – £3.37bn
• 2022 – £3.45bn
• 2021 – £3.11bn

The Reckitt share price is down 30% over five years. It was making headway this year, but its shares have plunged again on Iran war worries and a soft outlook.

There’s a good business here, and the shares could kick on when the cyclical consumer market swings back in its favour. With a modest price-to-earnings ratio of 12.6 and a dividend yield of 4.75%, today could prove a handy entry point.

3i Group has taken a beating

Private equity specialist 3i Group (LSE: III) is arguably a victim of its own success. It built its reputation by buying businesses, sorting them out and selling them on. But then one investment did so well it began to dominate the entire portfolio.

Discount retailer Action has turned into a pan-European giant, with more than 3,300 stores across the continent. Today, it makes up 70% of the 3i portfolio. It was growing so quickly that all it took was the slightest hint of a slowdown for 3i shares to crash. After years of outperformance, the shares have plunged 50% in a year. Incredibly, it’s the worst performer on the entire FTSE 100 in that time. And that’s despite delivering a healthy 22% return on shareholder funds.

The investment trust now trades at a massive 30% discount to the underlying value of the assets it holds. 3i is likely to remain bumpy for a while, but has long-term potential for investors comfortable with a bit of risk.

Babcock retreats

Babcock International Group (LSE: BAB) also raced ahead of itself. The shares rocketed as investors poured money into the defence stocks, pushing its price-to-earnings ratio towards 30. But it’s dropped 25% in the last three months. That’s partly due to a £140m hit as costs on its Type 31 frigates overran, combined with some profit taking. Today, it’s P/E is down to 20. Not dirt-cheap, but better value than before.

Babcock’s latest trading update (13 May) showed underlying operating profit up 19% to £433m. Free cash flow jumped 71% to £262m. With a hefty £9.6bn order backlog, roughly twice last year’s revenue, I’m hoping the shares will power on once the sector swings back into favour.

Should you invest £5,000 in Reckitt Benckiser Group Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Reckitt Benckiser Group Plc made the list?

Harvey Jones owns shares in 3i Group.

The post 3 beaten-down FTSE 100 shares to consider buying and holding for a decade appeared first on The Twelfth Magpie.

At first glance, that can feel like a daunting target.

But the more important question is not just the size of the pot, but how an investor actually gets there — and what kind of long-term investing behaviour makes that outcome realistic.

Because in practice, a SIPP is not built in one step. It’s built through years of contributions, reinvested returns, and the compounding effect of holding the right kinds of assets over time.

So, the more useful question is not just how much is needed, but what kind of investing behaviour is required to get there.

Investor behaviour

Building a SIPP capable of generating a £3,000 monthly retirement income is less about short-term investment skill, and more about long-term financial behaviour during working life.

The key driver is not just returns, but consistent contributions over decades, especially when rising income often brings higher lifestyle spending.

Opening a SIPP is the easy part. The challenge lies in funding it steadily through career and salary changes, while balancing competing priorities such as mortgages and family costs.

These allocation decisions matter as much as market performance. Regular investing through different market cycles builds resilience. Missed years of contributions can also have a disproportionate impact on the final outcome.

Ultimately, this behaviour determines whether a SIPP reaches the level needed to support meaningful retirement income.

Repeatable demand

One stock that I believe possesses the right kind of qualities for a long-term SIPP strategy is Reckitt (LSE: RKT).

What stands out is not just its global footprint, but the way its growth is increasingly being driven by repeatable consumer behaviour.

A key structural shift is emerging in global consumption. For the first time, emerging markets now contain more households with $25,000+ disposable income than developed markets. That matters because it expands the addressable base for the company’s “power brands” in a way that is gradual, persistent, and largely behaviour-driven.

Long-term engine growth

Rather than relying on a single growth engine, the company is executing across multiple layers.

In emerging markets, the focus is on expanding penetration in established categories. At the same time it’s building entirely new ones as consumption habits evolve.

In developed markets, the emphasis shifts towards premiumisation, where consumers trade up within trusted brands such as Finish and Nurofen.

What links these strategies together is consistency of demand. Whether it’s everyday hygiene products or health-related purchases, Reckitt’s portfolio sits in categories where repeat behaviour dominates. That is what ultimately supports long-term cash generation.

There are, of course, risks. Consumer sentiment in Europe remains weak, and execution in a highly competitive environment will need to be carefully managed, particularly around pricing and market share defence. Emerging markets expansion also depends on sustained distribution and execution strength.

Even so, the underlying investment case is straightforward. This is not a business dependent on cyclical timing or short bursts of demand, but one built on steady category growth, brand loyalty, and incremental global adoption.

For long-term SIPP investors, that consistency of demand is what ultimately underpins sustainable dividend income over time.

Should you invest £5,000 in Reckitt Benckiser Group Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Reckitt Benckiser Group Plc made the list?

Andrew Mackie does not hold any positions in the companies mentioned.

The post How much would you need in a SIPP to replace a £3,000 monthly salary? appeared first on The Twelfth Magpie.

Many will have expected a crash this year, given concerns over the oil price spike, an AI bubble and the shadow banking sector. It hasn’t happened yet. However, I can still see plenty of FTSE 100 stocks trading at bargain valuations, as measured by their price-to-earnings (P/E) ratios.

How can I tell if a stock is cheap?

The P/E shows how much investors are willing to pay for every pound of profit. It’s a crude but useful way to gauge investor confidence. 

P/Es change all the time, in line with share prices and company earnings. Across the FTSE 100, the average today is 16.2. Theoretically, it would take 16.2 years for the average UK blue-chip to earn back the price investors currently pay for its shares.

Once the P/E slips into single digits, it’s very much into bargain territory. So here are five companies I think worth investigating, with insanely low trailing P/Es.

• Reckitt Benckiser – 0.5.
• International Consolidated Airlines Group – 6.8.
• Lion Finance Group – 6.8.
• IG Group Holdings – 6.9.
• JD Sports Fashion – 8.7.

Often, a low P/E is a sign of a struggling company. That’s certainly the case with ‘King of Trainers’ JD Sports, where sales have been squeezed by the cost-of-living crisis. The JD share price may be a once-in-a-decade bargain as it now trades at 2016 levels.

By contrast, shares in British Airways owner International Consolidated Airlines Group are up almost 120% over five years. It almost went to the wall in the pandemic and I think investors are reluctant to bid the price too high as a result. So the P/E is just one factor among many investors must take into account.

Which is Reckitt Benckiser so cheap?

Consumer goods giant Reckitt Benckiser (LSE: RKT) easily has the lowest P/E on my list. The reason? Its shares now trade at 2014 levels, a staggering 12 years ago. 

The £30bn multinational makes household, health and personal care products such as Dettol, Durex, Nurofen and infant formula Nutramigen. Like JD, it’s also been punished by the cost-of-living crisis. But the big culprit was its disastrous 2017 acquisition of Mead Johnson Nutrition, which left Reckitt facing a blitz of US lawsuits over its premature baby formula. 

Reckitt’s now ultra-cheap with a trailing P/E of below one. But even this hasn’t sparked a recovery. Reckitt made a disappointing start to 2026, amid weak demand for seasonal cold and flu products. As inflation flares up, it could struggle to make headway, although the the board expects revenues to grow 4%-5% this year. It’s also trying to sharpen the company’s focus, by streamlining the business and beefing up its best performers.

With recovery potential and a tempting 4.7% trailing dividend yield, I think Reckitt is worth considering today. But I suspect we need a wide economic recovery before it can really crack on and push that P/E up.

Should you invest £5,000 in Reckitt Benckiser Group Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Reckitt Benckiser Group Plc made the list?

Harvey Jones owns shares in JD Sports and International Consolidated Airlines Group.

The post Are we staring at a once-in-a-decade chance to buy cheap FTSE 100 shares like this one? appeared first on The Twelfth Magpie.

Here are three UK shares I think merit investors’ consideration at the moment.

Reckitt

Consumer goods maker Reckitt (LSE: RKT) has had a difficult few years.

That helps explain why the Dettol maker’s share price is down 7% over the past year alone — and 28% over five years.

A 28% fall looks particularly bad considering that the wider FTSE 100 index of which Reckitt is a member has moved up by 50% during that period.

Why the fall?

A disastrous infant formula acquisition has long dogged performance, even though Reckitt has worked hard to move beyond it. Ongoing risks from legal action about historical product liability are also weighing on the share price.

But with a price-to-earnings ratio of just 10, I think the Reckitt share price now looks like offering potentially excellent long-term value given the company’s strong brand portfolio, pricing power, and global distribution footprint.

The 4.5% dividend yield is around one and a half times as lucrative as the FTSE 100 yield overall.

Legal & General

Another underperformer in the FTSE 100 over the past five years has been financial services firm Legal & General (LSE: LGEN).

During that period, the Legal & General share price has shed 4% of its value.

The company aims to keep growing its dividend per share annually, as it has done over the past few years. Given that its 8% yield is already the highest in the index, that is attractive.

Can it last?

The rate of annual growth has been reduced to 2%. One risk I see this year’s sale of a large US operation. That will likely eat into the revenue and profit base at Legal & General.

Still, I like the long-established company’s strategic focus on the huge and resilient retirement-linked financial services market.

With a powerful brand, large client base, and proven cash generation potential, I continue to think Legal & General shares look attractively priced.

Domino’s Pizza

There is, of course, life beyond the FTSE 100.

FTSE 250 member Domino’s Pizza (LSE: DOM) has been moving up this year. The share price has increased 11% since the beginning of 2026.

That still leaves it 28% lower over the past year, however.

The City is concerned about risks such as higher staff costs and market saturation. Chicken is displacing pizza in some consumers’ affections, though Domino’s aims to stay on top of that trend with a revamped chicken offering.

The local master franchisee of the global giant is profitable and offers a juicy 5.9% dividend yield.

In a trading update last month it said that it has had “an encouraging start to the year”, with like-for-like sales growth of 5%.

Domino’s has a relatively simple, tested business model. It benefits from economies of scale and a strategic focus on its main UK market. I see those as strengths.

Should you invest £5,000 in Reckitt Benckiser Group Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Reckitt Benckiser Group Plc made the list?

Christopher Ruane owns shares in Domino’s Pizza.

The post 3 UK shares to consider buying and holding for a decade appeared first on The Twelfth Magpie.

Still, that could be a lost opportunity. So if someone was to start investing now with £18 a day, what sort of portfolio might they have built by the time December rolls around once more?

Starting now, for the long term

Starting today, there are 223 days left before Christmas. So if someone starts investing £18 a day this weekend, they could have accrued over £4,000 by Yuletide.

That is quite an impressive figure, in my view, as it shows how relatively modest but regular contributions can soon add up.

Plus, that is only the start. I am a believer in long-term investing that stretches across years or decades, not just months. That £18 a day for a decade would add up to over £65k someone could invest in the market.

What’s a reasonable return?

Back to the short-term example though, to demonstrate how starting now could already mean making waves by Christmas.

Putting the money in is one thing, whether through a share-dealing account, trading app or Stocks and Shares ISA. But the reason people start investing in shares (instead of just using a Cash ISA or building society account, for example) is often because they hope to get an attractive return on their money.

That could consist of dividends, which some shares pay, and capital gains. Then again, shares can fall in value, resulting in capital loss.

The savvy investor starts as they mean to go on: focused on a balance of potential reward and risk that meets their own objectives, ability and comfort level.

Still, I think a reasonably good investor who takes risk seriously ought to be able to target compound annual growth rate of at least 5% over the long term.

Starting now, with an eye on the future

That does not mean by Christmas someone who starts investing today will have 5% more than they invest. That is an annual number, after all – and there is no guarantee that they will hit it.

What might it look like over the long term? Putting in £18 a day and compounding the portfolio annually at 5%, after a decade it ought to be worth around £84,530.

One share to consider this month

Back to today! One share I think someone who wants to start investing now should consider is consumer goods maker Reckitt Benckiser (LSE: RKT).

Its 31% share price fall in five years may look alarming. Indeed, some of the risks that have pushed the price down remain, such as litigation risks connected to past product liability. But the price fall has pushed the share cost down to around 9 times earnings.

I see that as an attractive valuation for a blue-chip company that owns well-known brands such as Dettol.

I also like the 4.7% dividend yield. Reckitt is a FTSE 100 share but that yield is around one and a half times as good as the FTSE 100’s overall yield.

The post If someone starts investing now with £18 a day, how much might they have by Christmas? appeared first on The Twelfth Magpie.

Sometimes though, there may seem to be no rush even to consider a SIPP. Retirement can seem a long way off for many of us and pensions often never seem to have much urgency.

But a SIPP can offer an investor benefits – and those can be more substantial over the course of time.

SIPPs have a significant advantage compared to ISAs

There are some things I like about my Stocks and Shares ISA over my SIPP. For example, unlike a SIPP, before reaching 55, I can take money out at any time.

Also any capital gains and income inside the ISA are tax-free, whereas a SIPP is more complicated. There is a tax-free drawdown allowance from 55 onwards, but apart from that the contents could be subject to tax.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

So, why do I bother with a SIPP? One big advantage is tax relief.

In layman’s terms, that means that for every £80 an ordinary rate income tax payer puts into their SIPP, the Exchequer gives them another £20. So they will then have £100 to invest.

For higher and additional rate income tax payers, the financial benefits can be even greater, thanks to more generous levels of tax relief.

Twenty pounds in my example might not sound like much. But that could instead be, for example, a free £20k on an £80k investment. That is enough to get many investors to sit up and pay attention!

Compounding’s a powerful wealth-building technique

We do not know how long that tax benefit may last. Apart from that though, what is the rush? In short, taking a long-term approach to investing allows money more time to grow – something it may do, thanks to the power of compounding.

Say someone invests £80k in a SIPP today which, thanks to tax relief, will be rounded up to £100k. By compounding that at 5% for 15 years, they could more than double their SIPP value to almost £208k.

But if they did that for just 10 years longer, the SIPP ought to be worth far more: some £338k. Adding more years of investing once retired is tough. So it is easier to aim for the same effect, by starting the SIPP investment much sooner!

One potential income and growth opportunity

One share I think SIPP investors should consider for its long-term prospects is consumer goods firm Reckitt Benckiser (LSE: RKT). The 4.6% dividend yield is already attractive, as it sits well above the FTSE 100 average.

But I also believe the Reckitt share price has long-term growth potential given that it currently trades on a lowly 10 times earnings.

Why is Reckitt priced like that? It has had legal problems around product liability in recent years and they may continue. The Middle East conflict threatens to add ingredient inflation and costlier shipping rates to the company’s woes, eating into profit margins.

As a long-term investor though, I feel chipper about Reckitt’s future potential. Its stable of long-established brands such as Dettol and Harpic give it pricing power. Hopefully, that will help it keep making sizeable profits.

The post Why bother with a SIPP now rather than wait 10 years? appeared first on The Twelfth Magpie.

Despite the index’s strong performance, though, not all of its 100 constituent members are doing so well.

Here are three blue-chip UK shares I think potentially look cheap from a long-term perspective — and worth considering.

Associated British Foods

For years, Associated British Foods (LSE: ABF) has faced a couple of ongoing challenges.

One is how to convince customers that foodstuffs and ingredients deserve a price premium. Using brands like Twinings can help, but ABF’s portfolio contains unbranded as well as branded products.

A second challenge has been getting investors to value the Primark discount clothing chain attractively. Its loyal customer base and strong brand can sometimes feel overlooked by investors.

Those challenges persist as April ends.

Inflation driven by the Middle Eastern war threaten the food business’s profit margins, though for now the company has said the cost consequences for this year ought to be “manageable“.

This month also saw plans to demerge Primark as a standalone listed company. Over time, that could help unlock value if investors perceive it differently out of the ABF structure. Meanwhile, ABF’s foods business is unexciting but well-run and profitable.

Taken together, the company’s price-to-earnings (P/E) ratio of 14 and 3.6% yield look attractive to me following a 14% share price fall so far this year.

Reckitt Benckiser

A FTSE 100 company that has had an even worse start to 2026 is Vanish-owner Reckitt Benckiser (LSE: RKT).

Its share price has plummeted by a quarter so far this year. The P/E ratio of 10 is even cheaper than ABF. Reckitt’s 4.6% yield is well above the 3.0% average of the FTSE 100 overall.

Reckitt clearly has challenges that have hurt its share price. Take your pick: ongoing legal risks in its infant formula business, ingredient cost inflation, weakening consumer sentiment in key markets, like-for-like sales declines in both North America and Europe in the first quarter – and more.

But I think Reckitt also has the tools to deal with such challenges over time. Its premium brands give it pricing power and it operates in product categories that will endure, like detergents and cleaning agents.

It may take years, but I expect Reckitt will ultimately be worth considerably more than today.

WPP

Still, I could have the balance of risks and potential rewards wrong with Reckitt. Nobody knows the future. An even trickier share in that respect is ad group WPP (LSE: WPP).

The WPP share price has crashed by 21% so far this year. That is on top of a dreadful performance last year, meaning it has more than halved in 12 months.

The clear culprit? AI.

Investors are fretting that AI could eat ad firms’ business.

So far, WPP has not convincingly reassured them. Like-for-like revenue fell 4% year on year in the first quarter.

Still, with its 5.6% dividend yield, deep expertise, superb client roster, and its own plans to use AI to help the business, WPP looks potentially cheap to me, although risky.

I plan to hang onto my shares.

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