Blue-chip stocks are shares in large, established, financially sound companies with a history of reliable performance. In the UK, these are typically found on the FTSE 100 index — a collection of the top 100 firms listed on the London Stock Exchange by market capitalisation.
Investing in blue-chip stocks is ideal for those seeking stability, steady growth, and often strong dividend income. These companies may not offer explosive returns like small caps, but they provide a strong foundation for a long-term portfolio.
Below is a carefully researched list of some of the best UK blue-chip shares to consider in 2025, including the reasons why they stand out right now.
Unilever plc (ULVR)
Sector: Consumer Goods
Dividend Yield: Approx. 3.5%
Why Buy Now: Unilever owns a broad range of household and personal care brands including Dove, Persil, and Ben & Jerry’s. Despite global economic uncertainty, demand for consumer staples remains steady.
The company has been actively restructuring to improve margins and growth, focusing more on premium brands and emerging markets. Its commitment to sustainability also aligns with the growing focus on ESG investing.
Unilever’s consistency, strong cash flow, and defensive nature make it a solid blue-chip pick for 2025, particularly for investors looking for dividend stability.
AstraZeneca plc (AZN)
Sector: Pharmaceuticals
Dividend Yield: Approx. 2.3%
Why Buy Now: AstraZeneca has established itself as one of the world’s leading pharmaceutical companies, especially after its strong role in the global vaccine rollout. It has an impressive drug pipeline in oncology, cardiovascular, and rare diseases.
In recent years, AstraZeneca has delivered consistent earnings growth and increased its research and development efforts. Its long-term outlook remains strong, and it’s well positioned to benefit from an ageing global population and increased healthcare spending.
This is a stock that combines growth and stability with international exposure — a top choice for long-term investors.
Legal & General Group plc (LGEN)
Sector: Financials – Insurance & Asset Management
Dividend Yield: Approx. 7.5%
Why Buy Now: Legal & General is a UK-based financial services group that manages pensions, annuities, and investment products. It’s one of the largest institutional investors in the UK and has a clear focus on long-term value creation.
In a low-growth environment, its high dividend yield is especially appealing for income-focused investors. The business is also heavily involved in long-term infrastructure and green investment, which positions it well for future growth.
LGEN combines a strong balance sheet, a predictable business model, and a high yield — all signs of a blue-chip investment.
Diageo plc (DGE)
Sector: Beverages – Alcoholic Drinks
Dividend Yield: Approx. 2.5%
Why Buy Now: Diageo owns a global portfolio of premium spirits brands, including Guinness, Johnnie Walker, and Tanqueray. While it has faced short-term headwinds from inflation and slower emerging market growth, its brand power gives it pricing resilience.
Diageo is increasing its presence in emerging markets and digital distribution, ensuring it remains competitive for years to come. Its balance of heritage and innovation, alongside steady dividend payouts, makes it a staple in many UK portfolios.
For investors looking for global exposure and strong branding, Diageo remains a smart buy.
GlaxoSmithKline plc (GSK)
Sector: Pharmaceuticals & Consumer Healthcare
Dividend Yield: Approx. 3.8%
Why Buy Now: GSK has undergone significant transformation in recent years, spinning off its consumer health division (now Haleon) and focusing more on biopharmaceuticals and vaccines.
It has a promising pipeline in areas such as HIV treatment, respiratory conditions, and oncology. GSK’s renewed focus on core business areas, along with continued investment in R&D, offers strong potential for long-term growth.
GSK is a blue-chip pick for those wanting exposure to healthcare innovation and reliable dividends.
National Grid plc (NG)
Sector: Utilities
Dividend Yield: Approx. 5.5%
Why Buy Now: National Grid is a core infrastructure provider, managing the UK’s electricity and gas transmission. With the UK’s transition to renewable energy and electrification, National Grid is expected to play a central role.
The company offers a solid dividend yield and operates in a regulated environment, which provides earnings stability. With government support for net-zero goals, National Grid is investing in green infrastructure, which could lead to future upside.
A strong choice for risk-averse investors wanting income and long-term infrastructure exposure.
HSBC Holdings plc (HSBA)
Sector: Banking
Dividend Yield: Approx. 6.8%
Why Buy Now: HSBC is one of the largest banking institutions in the world, with significant exposure to Asia, particularly China and Hong Kong. Rising interest rates globally have helped improve bank margins, which has supported earnings growth.
While political and economic challenges remain in Asia, HSBC’s size and diversification offer resilience. The group is also focusing on digital transformation and cost control, which should improve long-term profitability.
For those seeking income and global diversification in financial services, HSBC is a top contender.
RELX plc (REL)
Sector: Information & Analytics
Dividend Yield: Approx. 2.0%
Why Buy Now: RELX is a lesser-known but highly successful UK blue-chip stock that operates in analytics, legal data, and scientific publishing. Its services are subscription-based, providing recurring revenue and strong margins.
The company has delivered consistent earnings growth for years, even during economic downturns. Its transition to digital platforms and artificial intelligence integration makes it highly scalable.
RELX is perfect for investors looking for steady growth, innovation, and less cyclical exposure.
BP plc (BP)
Sector: Energy
Dividend Yield: Approx. 4.6%
Why Buy Now: BP is one of the UK’s largest companies and a major player in the global oil and gas sector. It has rebounded strongly since the pandemic, supported by high oil prices and cost-cutting measures.
Crucially, BP is now heavily investing in renewables and aims to become a net-zero company by 2050. This transition is risky but potentially rewarding. The company’s large dividend and undervalued share price make it attractive for those willing to hold through volatility.
Ideal for value investors and those who believe in energy transformation.
Tesco plc (TSCO)
Sector: Consumer Retail
Dividend Yield: Approx. 4.4%
Why Buy Now: Tesco remains the UK’s largest supermarket chain and has performed steadily through economic uncertainty. It has managed inflationary pressures well, maintaining market share and cost control.
Tesco has diversified through its online platform and financial services, and continues to generate strong free cash flow, supporting dividend growth. It’s not the most exciting stock, but it is a stable and defensive option — especially useful during downturns.
Great for income and stability in a diversified portfolio.
Final Thoughts
Blue-chip stocks are a cornerstone of a balanced, long-term investment strategy. The UK offers a wide range of such companies across sectors like healthcare, energy, consumer goods, and finance. Whether you are an income-focused investor or looking for stable growth, there’s a blue-chip stock for every profile.
As always, it’s important to diversify and not rely on a single sector or company. And while blue-chip stocks offer relative safety, they are not immune to market risks — so do your due diligence and consider how each fits into your broader financial goals.