These are the seven popular shares so many are snapping up. Now our Midas investing guru JOANNE HART reveals which ones could make you a big profit and the ones to avoid

Investors will often find themselves chasing after the next big thing, but sometimes the old stalwarts can prove the most lucrative.

There is a handful of companies that have made us billions of pounds richer over the decades and remain among the most popular today.

But what is their outlook today? Should you join the crowds and get in on the likes of BAE Systems, NatWest and Aviva – or should investors quit now while the going is good?

Rolls-Royce

Rolls-Royce Holdings is the queen bee of popular shares, rising from below 50p in the dark days of 2020 to £12.62 today – a more than 25-fold increase. The turnaround follows the appointment of chair Anita Frew in 2021 and chief executive Tufan Erginbilgic two years later.

Before, Rolls-Royce was endlessly buffeted by external shocks. Today, the engine-maker seems to have taken back control. Swathes of unnecessary management have been removed, systems have been upgraded and new tools introduced so information moves faster through the organisation.

In a business with 43,000 employees and customers in 150 countries, that is no small feat. And Erginbilgic has added in many other changes too, all designed to increase profit margins and fuel growth for decades to come.

Commercial aircraft are a case in point. Known for powering long-haul flights, Rolls makes the Trent XWB engine, the most efficient of its kind in the world. When Erginbilgic arrived on the scene however, he noticed that this entire division was just not charging customers enough.

Now, contracts are changing and profits are soaring, allowing Rolls to invest in new technology and make longer-lasting engines.

Defence is a key category for Rolls, powering fighter jets, military helicopters and sophisticated drones for the Royal Air Force, the US Department of War and others. The group specialises in transportation planes too, including the V22 Osprey, a favourite of President Trump.

Rolls is also the only company supplying nuclear reactors for the UK’s submarine fleet from a special facility in Derby, which is about to double in size, to accommodate a joint programme with Australia and the US.

Rolls has adapted this expertise to make small modular reactors, which are easier and cheaper to build than those of Hinkley Point or Sizewell C and will help make the UK and other European nations more self-sufficient. Rolls even makes engines for superyachts and fancy business jets, transporting the likes of Taylor Swift and Elon Musk around the world.

Erginbilgic is acutely aware that we live in uncertain times but is confident that Rolls will deliver profits of more than £4billion this year, a chunky 15 per cent increase over 2025. Longer term, growth should come not just from existing operations but also from the burgeoning modular reactor division and a move into short-haul engines, where volumes are far higher than long-distance travel.

Rolls shares were down a touch last week but, at £12.62, they have come a long way since the banana skin days and investors who bought at less than £1 may choose to sell down and bank profits.

Most shareholders should keep the faith however, as this business has strong, long-term prospects. Erginbilgic admirers may even choose to buy more shares, following the recent price dip.

Traded on: Main market Ticker: RR Contact: rolls-royce.com

BAE Systems

Shares in BAE Systems may not have had quite the same supersonic ride as Rolls-Royce but they have still soared from £4 to more than £19 in the past six years – and virtually tripled in price since Midas recommended them in 2022.

Those gains do not just reflect a surge in global turmoil but also BAE’s expertise, world-beating technology and top-drawer management.

We Brits have a tendency to put ourselves down and defence is no exception. There is a lot of talk about the woeful state of our Armed Forces: less talk about the technical prowess of our arms industry. But BAE is a global powerhouse, behind some of the most innovative military kit in the world.

These include advanced, super-resilient drones, quadcopter drones, like crewless helicopters but safer and cheaper, and even satellite drones that can fly into the stratosphere and stay there for up to a year powered by solar energy. The group has also developed an electromagnetic safety bubble to protect troops from unmanned aircraft.

The US military is a big fan of BAE’s kit and, with President Trump eyeing a defence budget of up to $1.5trillion, that is no bad thing.

There are several government-to-government contracts too, especially in the Middle East but also in Norway, which recently ordered five anti-submarine frigates after seeing them in development for the Royal Navy.

Some investors worry that BAE will be left behind if modern warfare comes to rely less on multi-billion-pound fighter jets, frigates and more on cheap drones. That is almost certainly over-simplistic. BAE covers all bases and governments are queuing up for its help, with an £83billion backlog of orders and a further pipeline of around £180billion.

At £19.30, BAE shares are not cheap but boss Charles Woodburn and his finance sidekick Brad Greve are determined to deliver years of profits growth, alongside rising dividends. With the world more dangerous than it has been in years, BAE should prove a rewarding investment.

Traded on: Main market Ticker: BA Contact: baesystems.com

Lloyds

Lloyds Banking Group has more than two million shareholders, making it one of the most widely held stocks in the country. Midas recommended the shares in 2019, when they were 60p. Today they are £1, so shareholders have made a healthy return, bolstered by rising dividends. Looking ahead, however, there are almost certainly better places for investors to put their hard-earned cash.

Like many peers, Lloyds has reaped the benefits of rising interest rates, yanking up borrowing costs faster than savings rates and profiting from complex financial instruments that boost bank figures when base rates increase. In a benign environment, these tools would provide a vigorous tailwind for several years. But our economy is stagnant, businesses are suffering and consumers are cautious. There is even the chance of a full-blown recession.

Chief executive Charlie Nunn is set to update investors on next steps and perhaps he will come up trumps. But Lloyds has already risen substantially in recent years. With a 4.2p dividend forecast for 2026, the Black Horse offers a yield of 4.2 per cent. Time to dismount.

Traded on: Main market Ticker: lloy Contact: lloydsbankinggroup.com

NatWest

Like Lloyds, NatWest is firmly rooted in the UK economy, with Royal Bank of Scotland, Ulster Bank and Coutts under its belt, as well as motor and asset finance house Lombard. Boss Paul Thwaite knows the bank better than most, having worked there since 1997, during which time NatWest has seen plenty of change, including a dramatic government rescue after the financial crisis, followed by years of state ownership.

Thwaite is determined to put all that behind him and profits have certainly increased under his stewardship, fuelled by many of the same factors that have helped Lloyds to prosper in recent years. Looking ahead, NatWest faces similar challenges to its larger rival but there are some key differences between the two.

Earlier this year, Thwaite splashed out £2.7billion on wealth management firm Evelyn Partners. Market reaction was negative and Evelyn’s chief executive and finance director have said they will step down once the transaction completes this summer.

It will take time to see how much Evelyn contributes to NatWest’s progress. But investors can take comfort from knowing that, at £6, the shares offer better value than Lloyds, while a forecast dividend of 36.5p puts the stock on an attractive dividend yield of 6 per cent. On that basis alone, the shares are a hold.

Traded on: Main market Ticker: NWG Contact: natwestgroup.com

Aviva

Aviva is one of the most popular stocks on the market – and for good reason.

Under chief executive Amanda Blanc, the insurer has gone from strength to strength and the price has soared. Midas recommended the shares in 2021 at £4.14. Today, they are almost 50 per cent higher, at 603.20p. There have been robust dividends too and most City brokers believe there is plenty more growth to come. Blanc inherited a sprawling patchwork of businesses, a soggy share price and a disenchanted investor base. She rolled up her sleeves, raked in around £8billion from selling off non-core subsidiaries and concentrated on areas where Aviva could be a top three player.

Some of the money was returned to shareholders but Blanc also used the cash to invest in Aviva’s future, a strategy that has paid off in spades. One in four adults in the UK is an Aviva customer, with the group a major force across general insurance, life assurance, savings and pensions. Technology has helped the business to understand customers better and entice them to buy more products.

Around 40 per cent of new sales are to existing customers, a percentage that could grow over time, even as Aviva wins business from new quarters.

The company added Direct Line to its roster last year and has set about making the business work better both financially and logistically. Aviva is also the second largest general insurer in Canada, providing a presence in the North American market and an element of diversification from the UK.

Looking ahead, there is plenty to go for, while canny finance director Charlotte Jones is committed to increasing dividends and buying back shares, which makes existing stock more valuable.

Aviva is not a glamorous business but it sells products and services that we all need. At 603.20p, the shares have fallen more than 10 per cent this year, hit by concerns about Britain’s economic prospects. They are a buy at current levels and the dividend is a further attraction: almost 42p is forecast for this year, putting the stock on a yield of 6.9 per cent.

Traded on: Main market Ticker: AV Contact: aviva.com

Legal & General

If a near 7 per cent yield does not sound tempting enough, how about 8.2 per cent? That’s what Aviva’s cousin Legal & General is offering investors, with a dividend of 22.2p forecast for this year and a share price of £2.71. Legal & General is a potent force in the lucrative pension transfer business, acquiring schemes from companies, taking on the responsibility of running them and paying out pensioners.

The group snapped up schemes valued at almost £12billion last year alone and expects to add at least £100billion of business over the next decade.

L&G operates a thriving investment management division too, looking after £1.1trillion of assets for institutions and companies around the world. And it provides life insurance and pensions for individuals, including workplace schemes set up by employers for their staff. L&G boss Antonio Simoes joined two years ago and, like Blanc, simplified the group, focusing on markets that should generate long-term growth.

Last year, Simoes signed a canny deal with Japanese insurance giant Meiji Yasuda to expand its pension business in America. The Japanese firm has a sizeable US presence and has taken a 5 per cent stake in L&G, a sign of commitment to the new partnership.

L&G shares have lagged the market and even Simoes has failed to set the stock alight. But the dividend yield offers compensation and supporters believe the best is yet to come. At £2.71, the stock is a keeper.

Traded on: Main market Ticker: LGEN Contact: legalandgeneral.com

BP

BP is one of Britain’s best-known companies but investors have had a rocky ride on the oil and gas giant. In the past fortnight alone, BP shares have roller-coastered, following the abrupt sacking of chairman Albert Manifold by the rest of the board.

The shares fell 40p to £5.10 on the news, not just because it is unusual for a board to sack its boss but also because there has been an unfortunate round of top-drawer departures at BP.

The group also paid too much attention to the green lobby for a while, upsetting mainstream investors along the way.

That is in the past, however. Today, BP is led by Meg O’Neill, a no-nonsense US oil woman with 30 years’ experience behind her.

She is joined by finance director Kate Thomson and deputy chief executive Carol Howle, a triumvirate determined to slash BP’s debt pile, cut costs, sell non-core businesses and focus on what BP is good at – producing oil and gas, selling it and exploring for new assets, including a giant discovery off the coast of Rio de Janeiro last summer, the group’s largest find in 25 years. Dividends are a priority for the company, with 25.3p forecast for this year, rising by a penny in 2027.

BP shares have had a good run this year and seem to have swiftly recovered from the Manifold debacle. But, at £5.45, there should be more to come, as O’Neill and her team drive progress across the business. Amanda Blanc fans should note too that she is a senior director at BP and broke the news of Manifold’s departure.

Traded on: Main market Ticker: BP Contact: bp.com