Equity roundup – Apple, Rolls-Royce and Unilever

​​​Apple reinforces defensive tech leadership

Apple continues demonstrating why it remains the ultimate defensive technology play during market uncertainty. The tech giant generated $85 billion from services in 2024, representing 22% of total revenue and highlighting successful diversification beyond hardware dependence.

​Services growth provides recurring revenue streams that smooth traditional iPhone cycle volatility. The App Store, iCloud, and subscription services create sustainable competitive advantages that competitors struggle to replicate, while generating significantly higher margins than hardware sales.

​With over $162 billion in cash and minimal debt, Apple possesses unmatched financial flexibility. Quarterly dividend payments of $15 billion demonstrate management's commitment to shareholder returns, while aggressive share buyback programmes continue reducing the outstanding share count.

​Trading at 28 times earnings with a 0.4% dividend yield, Apple commands premium valuations reflecting its market leadership and defensive characteristics. Investors seeking quality technology exposure can explore opportunities through our comprehensive trading platform.

​Rolls-Royce delivers aerospace turnaround excellence

​Rolls-Royce exemplifies successful industrial transformation following comprehensive operational restructuring. The aerospace engineering giant generated £1.6 billion free cash flow in 2024, marking a dramatic improvement from previous years of cash burn and operational challenges.

​The company's civil aerospace division has secured engine orders worth over £30 billion, reflecting strong demand for fuel-efficient engines as airlines modernise their fleets. Long-term service contracts provide predictable revenue streams extending decades into the future, creating substantial barriers to entry.

​Management's focus on operational efficiency and cost discipline has delivered margin expansion while positioning the company for long-term growth. The restructuring programme eliminated excess capacity and streamlined operations, resulting in improved cash generation and reduced operational complexity.

​Defence and power systems divisions provide additional diversification beyond civil aerospace exposure. Trading at attractive valuations following the successful turnaround, Rolls-Royce offers compelling exposure to aviation sector recovery and long-term aerospace growth trends through our share dealing platform.

​Unilever maintains consumer staples leadership 

​Unilever demonstrates consumer staples reliability through its diversified portfolio of essential brands spanning global markets. Operating in over 190 countries with annual revenue exceeding €60 billion, the consumer goods giant maintains market-leading positions across personal care, home care, and food categories.

​The company's portfolio of trusted brands reaches 3.4 billion people daily, creating substantial barriers to entry and pricing power that competitors struggle to challenge. Brands like Dove, Hellmann's, and Ben & Jerry's command premium positioning in their respective categories while generating consistent cash flows across economic cycles.

​Recent strategic restructuring has streamlined operations while focusing on higher-growth categories and emerging markets. Management's commitment to sustainable growth and purpose-driven branding resonates with evolving consumer preferences, particularly among younger demographics driving long-term consumption patterns.

​Trading at reasonable valuations with a 3.2% dividend yield, Unilever offers defensive characteristics appealing during uncertain market conditions. The combination of global diversification, essential product categories, and reliable dividend payments makes it attractive for investors seeking shares that deliver stability and income.