Fed up of chasing the next big thing? These stocks have stood the test of time
It’s been hard to avoid the chatter about AI stocks, debating whether the companies live up to lofty valuations or if it’s a bubble waiting to burst. Even though returns from many tech stocks in the past few years have been remarkable, it doesn’t mean they are the right choice for all investors.
Instead, some may be more comfortable with companies that have stood the test of time. The home market of the FTSE 100 happens to be full of them, with 27 of the original founding members over 40 years ago still having a place in the index.
While the returns might not look as punchy as some of the stocks in the AI and tech realm, there are other perks. Many of these established companies pay out chunky dividends to its investors, appealing to those looking for a bit of income. These stocks also avoid the complications of trading with overseas shares, which can involve additional taxes and paperwork.
The founding FTSE 100 companies that remain in the index today
| The remaining original FTSE 100 members | Average annual performance (past 5 years) |
|---|---|
| NatWest (previously called National Westminster Bank) | 41.9% |
| Barclays | 35.4% |
| Standard Chartered | 34.3% |
| HSBC (previously called Midland Bank) | 33.4% |
| BAE Systems (previously called British Aerospace) | 33.1% |
| Lloyds | 30.9% |
| Marks & Spencer | 29.5% |
| Aviva (previously called Commercial Union) | 27.1% |
| Imperial Brands (previously called Imperial) | 22.5% |
| Pearson | 17.7% |
| BP (previously called British Petroleum) | 17.5% |
| RELX (previously called Reed) | 16.3% |
| Tesco | 14.5% |
| Sainsbury’s | 14.5% |
| Legal & General | 13.3% |
| British American Tobacco (previously called BAT Industries) | 12.4% |
| Whitbread | 10.8% |
| Land Securities | 8.8% |
| Rio Tinto (previously called Rio Tinto-Zinc) | 7.7% |
| GSK (previously called Glaxo) | 4.2% |
| Associated British Foods | 3.7% |
| Barratt Redrow (previously called Barratt Development) | 2.6% |
| Unilever | 1.7% |
| Entain (previously called Ladbrokes) | 1.6% |
| Smith & Nephew | 0.2% |
| Prudential (previously called Prudential Assurance) | 0% |
| Reckitt (previously called Reckitt & Colman) | -3% |
Source: AJ Bell, ShareScope, total return data to 24 Sept 2025
The return of the banking sector
Notably, the top four stalwarts with the highest average annual returns over the past five years are in the banking sector, which has enjoyed a period of healthy returns amid high interest rates. Banks have also benefited from a return in investor confidence to the sector, over 15 years on from the global financial crisis.
Leading the group is NatWest, which has successfully fought off competitors that include not just other major established banks, but new players in the online banking sector like Monzo and Revolut. NatWest’s investors have been reassured by strong earnings, select strategic acquisitions, and the government selling down the remainder of its stake in the bank.
This has also come along with some decent dividends, with the shares currently yielding 5.8%. In comparison to AI and tech stocks, NatWest also holds its ground. Just one member of the US’s Magnificent Seven, including tech companies like Amazon, Apple and Microsoft, has beaten NatWest’s average five-year return, according to Sharescope. That company is Nvidia, with a 70.6% average return over the past five years.
BAE Systems
Defence company BAE Systems has captured the eye of investors that look to current geopolitical tensions, primarily Russia’s invasion of Ukraine and events in the Middle East. Various countries have enhanced their military strategies, creating a line of inquiries for defence contractors including BAE Systems.
BAE has also made a strong name for itself in cybersecurity, which has become a more prevalent issue for attacks in recent years. While BAE Systems is the only original member of the FTSE 100 with a defence focus, sector peer Rolls-Royce also sits in the blue-chip index today as well.
Marks & Spencer
Marks & Spencer may bring to mind your favourite edition of Percy Pigs, half of your mother’s wardrobe, or the distinct paper bags that come in handy when you need to take out the recycling. Whatever the identifier, they seem to keep coming back to the mind of investors, even after a stalling share price.
The brand benefits from customer loyalty when it comes to the food section, but what’s been the driver of higher returns in recent years is clothing. A combination of style and quality has attracted a wider range of shoppers. As usual, mothers might know best as daughters start flipping through the racks too.
Hannah Williford: Content Writer
Hannah joined AJ Bell in 2025 as an investment writer. She was previously a journalist at Portfolio Adviser Magazine, reporting on multi-asset, fixed income and equity funds, as well as macroeconomic impacts and regulatory changes...
