Best FTSE 100 stocks to watch in 2025

FTSE 100 in brief

The FTSE 100 remains a popular index globally, delivering a total return of 9.7% in 2024. This was its best performance since 2021, where it returned some 18.4%.

Of course, the index underperformed the S&P 500, which delivered a total return of 25% — but it’s worth noting that the FTSE 100 has historically done better in more adverse climes — most recently in 2022, where the UK’s premier index rose by 1% and the S&P 500 fell in value during the year.

For context, FTSE 100 companies are usually well-established with strong brand recognition, large economies of scale and proven business models. They also tend to be reliable dividend payers, with FTSE Russell data indicating that roughly three-quarters of FTSE 100 corporate income is derived from overseas.

It’s worth noting that the FTSE 100 has very low exposure to technology stocks, making it a popular partner to the S&P 500.

How to invest in FTSE 100 stocks with us

1. Learn more about FTSE 100 stocks
2. Download the IG Invest app or open a share dealing account online
3. Search for FTSE 100 shares on our app or web platform
4. Choose how many shares you’d like to buy
5. Place your deal and monitor your investment

Investors look to grow their capital through share price returns and dividends - if paid.

But the value of investments can fall as well as rise, past performance is no indicator of future returns, and you could get back less than your original investment.

We also offer many FTSE 100 ETFs, including the populariShares Core FTSE 100 UCITS ETF, which seeks to track the index with minimal expense fees.

Top FTSE 100 stocks to watch

These are the 10 largest companies on the FTSE 100 by market capitalisation at the start of 2025.

1. AstraZeneca (LON: AZN)
2. Shell (LON: SHEL)
3. HSBC (LON: HSBA)
4. Unilever (LON: ULVR)
5. Relx (LON: REL)
6. BP (LON: BP)
7. British American Tobacco (LON: BATS)
8. London Stock Exchange Group (LON: LSEG)
9. Rio Tinto (LON: RIO)
10. Diageo (LON: DGE)

AstraZeneca (LON: AZN)

AstraZeneca is perhaps the UK’s most well-known success story. The global pharmaceutical company specialises in the development of novel treatments across oncology, cardiovascular, renal, and respiratory diseases. It boasts a strong pipeline of new drugs, and consistent revenue growth arguably makes the company an attractive investment for those seeking exposure to the healthcare sector.

In half-year results, total revenue rose by some 18% year-over-year to $25.6 billion, driven by ‘by an 18% increase in Product Sales and continued growth in Alliance Revenue from partnered medicines.’ For context, almost half of the revenue growth came from advances in oncology and CVRM (cardiovascular, renal and metabolism).

Shell (LON: SHEL)

Shell is one of the world's leading energy companies, and the larger of the two oil majors on the FTSE 100. It engages in the exploration, production, refining, and marketing of oil and natural gas, and is also at the forefront of renewable energy solutions. Its diversified energy portfolio and consistent share buybacks ensures that the stock remains in the top 10.

In Q3 results, Shell announced another $3.5 billion buyback programme, making it the ‘12th consecutive quarter in which we have announced $3 billion or more in buybacks.’ CFFO was $14.7 billion for the quarter, including a working capital inflow of $2.7 billion.

HSBC (LON: HSBA)

HSBC is a titanic international bank, offering a wide range of financial services, including retail banking, wealth management, and global banking. Its extensive global network and diversified revenue streams are popular with defensive investors, and its large footprint arguably makes the bank a relatively safe investment. Indeed, HSBC remains Europe's biggest bank by assets under management.

In Q3 results, profit before tax increased by $800 million to $8.5 billion year-over-year, and the bank saw its CET1 capital ratio rise slightly to a healthy 15.2%.

Unilever (LON: ULVR)

Unilever is a multinational consumer goods company with a diverse portfolio of well-known brands in food, beverages, cleaning agents and personal care products — including Dove and Magnum. Its strong brand recognition, global reach, and focus on sustainability make it a popular portfolio component among UK investors.

In Q3 2024, turnover was €15.2 billion, with underlying sales growth of 4.5% year-over-year. The company is also plotting a sale of its premium ice cream business to realise further value.

Relx (LON: REL)

Relx is perhaps the only company on this list which is not a household name. Despite this, the business is a global provider of information-based analytics and decision tools for professional and business customers across many industries — and may become more popular as the artificial intelligence boom takes off.

In half-year results, revenue saw underlying growth of 7% year-over-year to more than £4.6 billion while adjusted operating profit saw underlying growth of 10% to £1.59 billion.

BP (LON: BP)

BP is the second FTSE 100 oil major, and is also involved in the exploration, production and marketing of oil and natural gas, in addition to investments in renewable energy. Its commitment to transitioning towards sustainable energy solutions alongside the strong dividend history makes BP a popular stock for income-focused investors.

In Q3 results, BP generated $2.3 billion in underlying replacement cost profit alongside $6.8 billion in operating cash flow. It also announced a $1.75 billion share buyback.

British American Tobacco (LON: BATS)

British American Tobacco is a world leader in tobacco, and increasingly, new categories of non-traditional nicotine based products such as vapes. It controls brands including Dunhill, Kent and Lucky Strike — though is facing headwinds in key countries where a combination of legislation and changing consumer preferences is seeing the sales of cigarettes fall.

For context, half-year results saw revenue fall by 8.2% year-over-year, driven by the sale of businesses in Russia and Belarus in September 2023 and translational FX headwinds. However, CEO Tadeu Marocco notes that the company is ‘Building a Smokeless World. We added 1.4 million consumers (to 26.4 million1) of our Smokeless brands, now accounting for 17.9% of Group revenue, an increase of 1.4 ppts vs FY23.’

London Stock Exchange Group (LON: LSEG)

The London Stock Exchange Group is a diversified international market infrastructure and capital markets business, providing services including trading, clearing, and information services. It is itself the exchange which hosts the FTSE 100. Its strategic acquisitions and focus on the data and analytics side of the business has seen it go from strength to strength in recent years, though some investors are concerned that London is struggling to retain and attract quality companies.

In half-year results, total income rose by 7.1% year-over-year while free cash flow rise by some 29% to £761 million.

Rio Tinto (LON: RIO)

Rio Tinto is a leading global mining group, focusing on the extraction and processing of metals including iron ore, aluminium, and copper. Its strong balance sheet and the growing electrification of the world’s economy makes Rio a key FTSE 100 stock for many investors — though it has had to deal with several ESG concerns over the years.

In half-year results, underlying EBITDA came in at $12.1 billion while net cash from operating activities was $7.1 billion. The company paid out an interim ordinary dividend of some $2.9 billion, representing a 50% payout.

Diageo (LON: DGE)

Diageo is a multinational alcoholic beverage company which controls famous brands including Johnnie Walker, Smirnoff, Captain Morgan, Baileys, Tanqueray and Guiness. The company operates in 180 countries and is a major player in the premium drinks segment. However, it has struggled in South America in recent years — and in common with its rivals is somewhat struggling with changing consumer tastes in key markets.

H1 2024 and H2 2024 organic profit fell by 5.4% and 3.9% year-over-year respectively, though the company notes that some of this decrease is due to strategic investments made to generate long-term growth.

FTSE 100 stocks summed up

• The FTSE 100 remains a popular index globally, delivering a total return of 9.7% in 2024
• FTSE 100 companies are usually well-established with strong brand recognition, economies of scale and proven business models
• The index is dominated by dividend-paying miners, oilers and banks
• You can also invest in FTSE 100-tracking ETFs with us