Indeed, despite retail data coming in softer across the March-April period, Sainsbury’s released another set of solid full-year results.

In practical investing terms, this disparity has widened the gap between the stock’s price and its real worth (‘fair value’). And because asset prices (including shares) tend to converge to this value over time, this could be a great opportunity for long-term investors.

So how big is this gap?

Where should the shares be trading?

Discounted cash flow (DCF) analysis enables investors to determine what a stock is truly worth by projecting future cash flows for the underlying business and discounting them back to today. When those forecasts become less certain, the discount rate on those projections increases.

Because analysts’ core cash flow projections may vary, so may their DCF price conclusions. My DCF modelling — including a 9% discount rate — shows Sainsbury’s shares are 53% undervalued at their current £3.10 price.

Therefore, their ‘fair value’ is £6.60 — more than double the present level.

So if share prices continue in their historical trend of trading to their fair value over time, and the DCF modelling proves accurate, this could be a tremendous buying opportunity today.

How does the business momentum look?

That said, to judge whether this valuation gap can realistically close, I need to look at the company’s underlying momentum.

A risk to Sainsbury’s is that UK consumer spending remains fragile, which would weigh on supermarket volumes. Another is an increase in the ongoing price‑competition cycle across the sector, which could pressure margins.

However, the giant supermarket business posted another set of solid full-year results on 23 April. Profit after tax rose 55.3% year on year to £393m, highlighting success in simplifying operations and sharpening its value proposition. Group revenue increased 2.7% to £33.6bn, underlining the resilience of its multi‑format retail model in a challenging consumer environment.

Meanwhile, retail sales rose 4.3% to £29.99bn, illustrating the continued strength of its core grocery offer and improving customer loyalty. Net cash generated from operating activities surged by £972m to £1.77bn, showing tight cost control and effective working‑capital management.

Together, these results point to a business with solid operational momentum supporting solid earnings growth. Indeed, analysts forecast Sainsbury’s profits will grow by an average 7.3% a year to end-2028 at minimum.

My investment view

Despite its solid results and bullish analysts’ projections, Sainsbury’s still trades at a steep discount to its fair value.

Moreover, the forecasts are also for its dividend yield to rise to 5% next year, and to stay there over the medium term. This compares to an average 3.1% for the FTSE 100 and adds a layer of regular income to any share price gains. Consequently, I think it is well worth investors’ consideration.

I will not buy it, as I already have another holding in the sector (Marks & Spencer). But other deeply undervalued, high-yield shares have caught my eye recently.

Should you invest £5,000 in J Sainsbury 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 J Sainsbury Plc made the list?

Simon Watkins owns shares in Marks and Spencer.

The post Sainsbury’s share price looks 53% undervalued to me, and here’s what the market may be missing… appeared first on The Twelfth Magpie.

However, after the group announced (23 April) its results for the 52 weeks ended 28 February (FY26), investors appeared disappointed and sent its share price 3.7% lower. It also led to a number of City brokers reassessing their price targets and revisiting their ratings for the stock.

As is often the case, opinion’s divided but, generally speaking, the brokers were less favourable to the stock after crunching their way through the numbers.

For shareholders like me, this is obviously disappointing. However, I’m not selling. Here’s why.

What’s going on?

At first glance, the reaction of investors and brokers is a little puzzling. After all, the headlines from the results were as follows:

• Retail revenue increased 4.3% year-on-year to £30bn.
• Grocery sales rose 5.2%.
• Retail underlying operating profit fell 1.1% to £1bn (a deliberate decision was made not to pass on cost increases to customers).
• Retail free cash flow improved by 8.1% to £600m.
• Net debt fell £100m to £5.8bn.
• Annual dividend hiked by 0.7% to 13.7p.
• £300m share buyback programme announced.

But what appeared to spook the City was the grocer’s outlook. Why?

Increased uncertainty

Although the group reported a “positive” start to the new financial year with grocery volume growth ahead of the market, it said the “conflict in the Middle East will impact both our customers and our business”.

Describing the consequences as “very uncertain”, it’s expecting to deliver underlying operating profit of £975m-£1.075bn in FY27. It’s a wide range so it’s hard to know what to make of the numbers.

The group’s expecting retail free cash flow of “more than” £500m. Given what’s going on in the world at the moment, this doesn’t seem too bad to me. But I’m aware of the challenges facing the group.

As well as events in the Gulf, the performance of its Argos arm remains a concern. It continues to under-perform the wider group and could be something of a distraction for management.

Also, the UK grocery market remains one of the most competitive around with tight margins and heavy discounting.

But the recent pull back in the retailer’s share price and the modest increase in its dividend has pushed its yield higher. New investors could avail of a 4.2% return (no guarantees, of course).

What am I doing?

The publication of results is often a time when shareholders reflect. I’m no different. And after doing this, I’ve decided to keep hold of my shares. Why?

Importantly, the group’s shown that it’s able to cope with the threat of the German discounters Aldi and Lidl, better than some of its rivals. And then there’s its impressive dividend.

Admittedly, its share price is unlikely to go gangbusters but the stock’s defensive properties could be ideal for the uncertain times in which we live.

Personally, I’m going to keep Sainsbury’s in my Stocks and Shares ISA and I believe investors could consider adding it to their own portfolios.

The post 2 analysts have changed their minds about this FTSE 100 founding member. But I don’t care! appeared first on The Twelfth Magpie.

A consistent track record

First up is GSK (LSE:GSK). The global pharma giant is up 57% over the past year and 10% so far in 2026, despite recent market turmoil.

If the share price performance wasn’t enough to prove the company can do well even during volatile times, the business model should. It sells essential medicines and vaccines, so demand doesn’t fall during recessions or geopolitical shocks. Healthcare demand is structurally rising, primarily due to ageing populations the world over.

At the same time, it’s investing heavily in new products. Recent trading updates showed a strong pipeline in areas like HIV, oncology, respiratory and others. This should act to future-proof the company, as medical advances continue to play out.

From a valuation perspective, I don’t believe it’s overvalued. In fact, with a price-to-earnings ratio of 12.19, it’s well below the FTSE 100 average of 17.6. Therefore, it could be considered a value play along with its defensive attributes.

In terms of risks, it’ll always be at the mercy of the respective regulators around the world. If sentiment changes and certain drugs don’t get approved, it could present costly mistakes for the company.

UK-centric

Another firm to consider is J Sainsbury (LSE:SBRY). So far this year, the stock is up 3%, and up 48% over the past year. I’d argue that food retail is one of the most non-discretionary items for any consumer. No matter what happens with global wars or a struggling UK economy, people need to eat.

That puts supermarkets like Sainsbury’s in the same defensive bucket as GSK, but arguably even more so due to the frequent, habitual spending of foodstuffs. Further, Sainsbury’s revenue is overwhelmingly UK-based, with supply chains that are more localised than global industrial firms. So even though it may experience some supply chain disruption due to the conflicts, it is not as large as other sectors.

Importantly, the firm competes across price tiers (including things like Aldi price-matching strategies). It has its own strong-brand ranges, which offer higher profit margins than branded goods.

When I add it all together, I think the company could be considered by investors. Of course, the supermarket space is very competitive. It operates on low profit margins, meaning that only a relatively small cost increase can hurt the overall business. But even with this, I still think the outlook for the coming year is net positive.

The post 2 FTSE 100 shares that could outperform this year regardless of geopolitics appeared first on The Twelfth Magpie.

But for long-term investors, weaker markets can create a rare chance to pick up solid businesses at lower valuations, and potentially lock in stronger dividend yields.

Opportunity during a correction

Let’s be clear here: not every falling stock becomes a bargain. Some shares drop for good reason, and a correction can still turn into something uglier.

I think the real opportunity lies in cutting through the noise, staying diversified, and focusing on businesses built to handle tougher conditions.

Of course, income investing during a correction is not about chasing the biggest yield on the screen. A chunky payout can be a warning sign if earnings are weakening or debt is rising.

In my view, the better approach is to focus on dividend durability, balance sheet strength, and whether a company is likely to remain relevant.

Events hit markets all the time and the stock market does tend to move in cycles. The key is picking companies that can battle through inflation, weaker confidence, and fiercer competition to still deliver strong returns over time.

Why Sainsbury stands out

One place I keep coming back to is the less cyclical end of the market. These are businesses that sell everyday essentials, which tend to hold up better when the economy wobbles.

Supermarkets are not immune to pressure, but demand for food and household basics tends to hold up better than demand for holidays, luxury goods, or other discretionary spending.

A good example is J Sainsbury (LSE: SBRY). In its 2025 annual report, the company said retail sales excluding fuel rose 3.1% and retail underlying operating profit climbed to £1.036bn, up 7.2% year on year.

It holds around a 16% UK grocery market share and has a dividend yield of around 4.3% as I write on 20 March. 

There is a simple reason this matters in a correction. If a steady dividend payer falls with the wider market, the yield can rise, assuming the payout remains intact.

That can improve the passive income equation without requiring heroic growth assumptions. It also helps explain why many investors look again at dividend shares and diversification when markets turn shaky.

Of course, there are still risks. Grocery retail is brutally competitive and margins are thin.

A sharp increase in essentials like fertiliser and urea amid the Iran war could impact food prices and pressure the company’s margins.

However, a combination of a strong dividend, solid market position, and provision of essential goods is a nice place for passive income investors to start their research.

Building a steady passive income

A stock market correction could be good news for passive income investors with the right approach.

Investors looking to establish a strong financial future should cut through the noise and focus on long-term returns. Snapping up durable businesses with steady demand and cash flow can be a powerful strategy.

J Sainsbury is just one example. If market nerves get worse from here, the most interesting passive income opportunities may come from the shares many investors stop watching at exactly the wrong moment.

The post Could a stock market correction be good news for passive income? appeared first on The Twelfth Magpie.

So when thinking long term (ie for retirement), what’s the best option?

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.

ISA types

Think of a Cash ISA as a safe money box at the bank. Interest is tax‑free, but the rate is often only a bit above inflation, so spending power may barely grow over time.

With a Stocks and Shares ISA, you can invest in multiple assets. Values bounce around, but over 10-20 years, shares beat cash. That’s because companies can raise prices, grow profits, and pay dividends that compound.

A SIPP’s powerful for retirement: you get tax relief on what you pay in, and the investments grow tax‑free. The catch is, your money’s locked up until at least your mid‑50s and withdrawals are taxed as income.

If you might need access earlier, a Stocks and Shares ISA often fits better than a SIPP. To say which is the best is hard as it depends on personal circumstances. But whichever you choose, the core benefit typically involves tax-free compounding returns. 

But which types of stocks make good long-term investments? Let’s look at one well-known UK company as an example

A high street staple

Sainsbury’s (LSE: SBRY) is a familiar UK supermarket chain offering groceries, homewares and clothing. It also owns the popular multifaceted (tech, toys, home, garden, appliances, games etc) retailer Argos, and has a big presence both in‑store and online.

Recently, the group’s been executing a ‘Next Level Sainsbury’s’ plan. The aim? To optimise its value and grow its digital and delivery services, which has helped lift sales, profits and cash generation in recent years.

Numbers-wise, it exhibits the kind of growth and stability wanted in a long-term compounder.

The shares are up 58% over five years and earnings are up 160% year on year. The dividend yield sits around 4%, and the group’s paid an uninterrupted dividend for 37 years. Cash coverage is particularly impressive, covering the dividend 5.7 times.

That mix of reliability and headroom is exactly what income investors like to see.

Aside from a strong dividend policy, it’s also initiated share buybacks, supported by the sale of its banking operations.

Challenges

Even established outfits like Sainsbury’s don’t have it easy. In the competitive UK grocery market, Tesco, Asda, and Morrisons edge in on its share. Plus, value chains such as Aldi and Lidl push hard on price and promotions.

In a tough environment where shoppers are very price sensitive, the pressure’s intense. It’s already a low-margin sector, so even small cost increases or price wars with discounters can hit profits hard.

To Sainsbury’s credit, its own‑label ranges and Nectar loyalty programme help it gain market share against discounters. Additionally, Argos, Tu Clothing and its online ops help drive non‑food sales.

The bottom line

Given its market position, improving profits and disciplined capital returns, Sainsbury’s looks attractive. It’s not risk‑free, of course, with competitive pressure and thin margins threatening future returns.

But for investors seeking dividend income and moderate growth with defensive qualities, I think it’s worth considering.

Whether opting for a Stocks and Shares ISA or a SIPP, companies with steady earnings and sustainable dividends are the cornerstone of good retirement portfolios.

The post Is a Stocks and Shares ISA the better option for retirement? appeared first on The Twelfth Magpie.

Instead of chasing momentum, lots of investors prefer to target undervalued stocks, in the hope of benefitting when they swing back into favour. I’m one of them. And despite the FTSE 100’s blockbuster performance, I can still see plenty of bargains.

Sainsbury’s shares got cheaper last week

Even though the index climbed another 0.8% on Friday, more than 20 shares fell. The biggest faller was supermarket chain Sainsbury’s (LSE: SBRY), which slumped 5.29% on the day.

Investors were unimpressed by its Christmas trading update, even though it posted a 5% increase in grocery sales in the six weeks to 3 January.

Investors retreated as cash-strapped consumers spent less at subsidiary Argos. Sainsbury’s looks cheaper as a result, with its price-to-earnings (P/E) ratio down to 13.5, comfortably below the FTSE 100 average of around 20. The trailing dividend yield is 4.4%, so there’s income on offer as well as share price recovery potential, and forecasts suggest it could hit 6.2% in the year ahead.

As ever, there are risks. If the economy slows further and unemployment rises, profits could come under pressure. But for long-term investors, this could be a buying opportunity to consider. I can see plenty more out there.

King of trainers JD Sports has a P/E of just 6.8, although I’d urge caution here. It’s suffered two poor Christmases in a row, and with consumers struggling generally, it may be heading for another disappointment. The JD share price dipped last week after Bank of America downgraded sportswear retailers. I’ve gone big on this stock but may gave to wait another year or two (or three) for the recovery story to play out.

Undervalued stock opportunities?

Could budget airline easyJet finally take off this year? It certainly looks cheap with a P/E of 7.6, as does rival International Consolidated Airlines Group, which owns British Airways. IAG’s shares are up 35% in a year and 180% over two, yet it still trades on a P/E of just 8.8.

Falling oil prices have dragged down Shell, another apparent bargain with a P/E of 9.4, while energy group Centrica sits on 9.5. That’s bargain-basement territory, although investors should dig into why the shares are so cheap. Oil could struggle this year too

BT Group looks interesting on a P/E of just 9.6. I’ve also been building a big position in FTSE 100 dark horse Bunzl, whose shares have slumped 35% over the last year, cutting its P/E to 10.7. I think it still has huge comeback potential, but as with JD Sports, patience is required. Housebuilder Berkeley Group Holdings, which has a P/E of on 10.8, and Marks and Spencer Group on 11.1, have scope to make up lost ground.

Then there’s paper and packaging group Mondi and property firm Land Securities Group, both on P/Es of 12.8 and offering yields of more than 6%.

The FTSE 100 is flying, but there are still potential bargains to be had. Just remember that there’s more to a good investment than a low price.

The post The FTSE 100 hits a new all-time high but these blue-chips still look cheap to me! appeared first on The Twelfth Magpie.

UK grocery giant J Sainsbury (LSE: SBRY) is one I’ve got my eye on. I think the company is worth a closer look given its strong recent trading and tasty dividend.

With supermarket margins squeezed and competition fierce, the Sainsbury’s story is one I’d like to unpack a little further to see if it’s one for income investors to consider in 2026.

What’s happening at Sainsbury’s?

The company remains the UK’s second-largest supermarket chain and a long-standing Footsie member. Its share price has climbed 18.9% in the last 12 months to 313p as I write on 9 January, after hitting a 52-week high in November. 

Today’s announcement of a bumper Christmas trading period will be music to investors’ ears. The company grew its grocery market share for the sixth consecutive year in its best Christmas period on record.

In the 16 weeks to 3 January 2026, grocery sales rose 5.4% due to customer switching, larger basket sizes, and standout fresh food sales. That included a 20% year-on-year increase in British turkey sales as customers invested in their festive feasts.

That’s good news for investors hoping for continued strong trading and a sustainable dividend from a company that has consistently rewarded shareholders. 

Strong cash flow and payout history

The most recent annual dividend payment was around 15.1p per share, translating into a forward dividend yield of 4.9% based on the 313p share price as I write. Given the Bank of England base rate now sits at 3.75% — the lowest level since late 2023 — that sort of payout could be attractive to investors.

The company recently upgraded its guidance and expects to deliver more than £550m in retail free cash flow for the year ending March 2026. That bodes well for dividend cover, which is sitting at a healthy 1.7 times.

Another plus is that the groceries sector isn’t as vulnerable to changes in the state of the economy as others like mining or energy. The company also has a history of delivering special dividends and share buybacks after selling non-core assets in some further shareholder-friendly behaviour.

What are the risks?

Groceries is a low margin business, and intense price competition, particularly from discount rivals like Aldi and Lidl, can put pressure on profitability.

That margin pressure could limit the company’s ability to grow payouts over time. Supermarkets often see earnings fluctuate with input costs like energy and transport, and there is no guarantee that dividend increases will keep pace with inflation or market expectations.

Income is also just one part of the picture within the Footsie. While it’s great to receive steady income, other more growth-focused stocks could provide better overall returns in the long run.

My verdict

The company’s position in the UK grocery market and its steady payout history make it a notable FTSE 100 dividend stock.

A strong forward yield and history of returning capital through special payouts are also positives for income investors. However, despite a strong Christmas period, the company is still operating in a sector with competitive pricing and tight margins, which could limit dividend payout increases.

I do think the stock has a place in a well-diversified portfolio over a long-term horizon and I think it’s worth considering for investors hunting for income in 2026.

The post Is this FTSE 100 stock a top dividend play in 2026? appeared first on The Twelfth Magpie.

I can’t help but think some of the forecasts are made only to grab the headlines. For example, if I say there’s going to be a crash in 2026 – typically defined as a rapid market drop of more than 20% — and this proves to be accurate, I can then claim to be amazingly insightful and a bit of an expert when it comes to predicting market movements. On the other hand, if a crash doesn’t happen, nobody will ever remember what I forecast.

That’s why I suspect some commentators regularly use this ‘C-word’. After all, eventually they will be proved right. But let’s try and cut through the noise and both ask and answer the question: will there be a stock market crash in 2026?

Getting warmer

Sorry to mislead anyone into thinking I have an answer but to be truthful, I have no idea!

Yet there’s plenty of evidence to suggest that the US market in particular is overheating. The Buffett Indicator – a bit like a market-wide price-to-earnings ratio – is close to its highest-ever level. As the saying goes, if America sneezes, the world will catch a cold. Goodness knows what will happen on this side of the Atlantic if the US gets a bad dose of flu.

And since the FTSE 100 was launched in 1984, there have been four crashes – Black Monday (1987), the bursting of the dotcom bubble (2000), the global financial crisis (2007-2008), and the pandemic (2020). Therefore, crude maths suggests there’s approximately a one in 10 chance of something similar happening in 2026.

Given the uncertainty, I think it’s sensible to, as the famous quote goes: “Expect the best, plan for the worst, and prepare to be surprised.”

That’s why I think it’s a good idea for anyone investing in the stock market to have a diversified portfolio. In other words, a balance of growth stocks and income shares, spread across different sectors operating in a wide variety of markets.

One option

A stock that I hold – J Sainsbury (LSE:SBRY) – has defensive properties that could make it worth considering by those expecting a crash, or at the very least, a market downturn.

Irrespective of the state of the wider economy, people have to eat. When incomes are squeezed, they may swap branded items for cheaper ones. But like most other grocers, Sainsbury’s has its own range of value products to cater for this demand. In fact, these offer the opportunity to earn higher margins as the grocer has greater control over the supply chain and can therefore capture more of the profit.

However, grocery retailing is a tough business. Competition is fierce and margins are tight. In addition, the logistics associated with keeping over 1,400 supermarkets and convenience stores fully stocked can be challenging.

But Sainsbury’s can trace its roots back to 1869. In its 156-year history, it’s survived wars, recessions, and a few pandemics, not to mention some stock market crashes. It’s also established a reputation for paying a generous dividend. And after all this time, it remains Britain’s second-largest grocer. That’s why I think it’s a stock worth considering by investors who are fearing the worst in 2026, but are also hoping for the best.

The post Will the UK stock market crash in 2026? appeared first on The Twelfth Magpie.

When pushed to give me the names of some of these companies it warned that the list did not comprise recommendations but “classic examples of stable, dependable dividend payers”.

What did it say?

The software pointed out that Procter & Gamble and The Coca-Cola Company have remarkably increased their dividends for over 60 consecutive years. It then identified types of stocks — such as consumer staples and utilities — that are, generally speaking, known for their above-average yielding shares.

Closer to home, it said British American Tobacco (“long-established, high-yield dividend payer”), Legal & General (“strong dividend yield and solid dividend history”) and National Grid (“stable cash flows and reliable dividends”) were examples of “widely cited” income stocks.

Again, it stressed these were “not recommendations”. At first glance, I can see why these three made the list. But then ChatGPT let itself down.

Oh dear!

That’s because I don’t think even the most loyal shareholders in Vodafone and SSE would claim they have invested in reliable income stocks. And yet these were among the five income shares identified.

In May 2024, the telecoms giant cut its payout in half. This followed a 50% reduction in 2019. As for the UK’s largest renewable energy provider, over the past 12 months, its dividend was 33% lower than it was for its March 2023 financial year.

The inclusion of these two is a valuable reminder that dividends are never guaranteed. It also highlights that relying on a computer program to identify suitable investments isn’t a good idea. And that there’s no substitute for human-led research.

One I’ve chosen

Even though ChatGPT didn’t identify J Sainsbury (LSE:SBRY) as a top income share, this human being decided to add the grocer to my ISA earlier this month. In my opinion, others could consider the stock too.

I took advantage of a pullback in the share price following the announcement that the Qatar Investment Authority (QIA) was to reduce its stake from 10.5% to 6.8%. The Qatari’s might be looking to book some profit. Alternatively, they could be fearful of increased competition and smaller profit margins.

However, the QIA has been selling shares for a while now. It doesn’t appear to be anything to be worried about. Indeed, in November, Sainsbury’s upgraded its full-year profit forecast.

According to Kantar, its share of the British grocery market was 16% for the 12 weeks ended 30 November. This puts it comfortably in second place. It hasn’t been higher since – at least – February 2020. Clearly, the group’s doing something right in a very competitive market.

However, it’s the passive income opportunity that interests me the most. Based on dividends declared over the past 12 months, the FTSE 100 retailer’s yielding (12 December) an impressive 7.7%. But this includes a special one-off payment following the group’s decision to exit the banking market. Even so, by excluding this, the yield’s still a healthy 4.3%.

But as much as I like Sainsbury’s, I’m aware that it’s just one high-yielding UK share that’s currently available.

The post I asked ChatGPT for the ‘ultimate’ income stock. Here’s what it said… appeared first on The Twelfth Magpie.

Having learned by watching the stock market success of billionaires like Warren Buffett, I aim to buy shares in British companies that I would gladly own for years or even decades, as long as the investment case did not unexpectedly change along the way (as happened to Buffett some years ago when he owned Tesco shares).

Here are three UK shares I think investors should consider this December for their long-term potential.

Cranswick

Meat, sandwiches and supermarket snacks might not seem like the money-spinning stuff of investor dreams. In fact though, that basic business has propelled Cranwsick (LSE: CWK) to a 50% share price gain over the past five years alone.

Success in this business area has also allowed the firm to be one of the few UK shares to grow its dividend annually for decades.

As Cranswick has become more successful, that has reinforced its success. It has developed economies of scale, deepened relationships with large customers and grown its expertise. Those bode well for the future.

That formula could keep delivering. There is a risk from any reputational damage caused by the company’s meat-rearing methods though. Treating animals well could be important for the health not just of those creatures but of the business too.

M&G

While asset manager M&G (LSE: MNG) does not have Cranswick’s decades-long streak of annual dividend growth, the FTSE 100 asset manager does aim to raise its payout share each year.

Given that its dividend yield already stands at a juicy 7.4%, that could potentially be very lucrative for long-term investors.

As well as dividends, M&G has been rewarding in terms of share price growth too. The share has moved up 46% over the past five years.

Past performance is no guarantee of what may happen in future, of course. One risk I see is investors pulling more out of the company’s funds than they put in, hurting fee income.

Still, with its large, multinational client base and strong brand, I regard M&G as a share for investors to consider.

J Sainsbury

People will keep buying groceries year after year in coming decades, whether in shops or online.

That could be good news for J Sainsbury (LSE: SBRY). The grocer has proven its business model over many decades, but has not stood still. As well as a large network of shops, it has developed an extensive online shopping operation.

Over the past five years, the Sainsbury share price has increased by 46%. The grocer also offers a dividend yield of 4.6%, well above the 3.1% offered by the FTSE 100 index of leading UK shares.

The UK grocery market is highly competitive and I see that as a risk for Sainsbury. It lacks the market dominance of rival Tesco — but also the reputation for keen pricing of German discounters such as Aldi.

However, if Sainsbury can keep striking the right balance between delivering quality products and competitive pricing instore while also developing its digital business further, I think it could potentially do well for many years or perhaps decades to come.

The post 3 UK shares to consider for the long term appeared first on The Twelfth Magpie.