Not too long ago, I highlighted the shares I’d purchase if I may solely select three for my SIPP (Self-Invested Private Pension). The shares had been Microsoft, Alphabet (Google), and Nvidia – all US-listed tech giants with vital development potential.

Now i’m going by means of the identical train with UK shares. I’d decide these LSE shares SIPP.

20+ consecutive dividend will increase

I’d need to put money into firms with robust aggressive benefits and substantial long-term development potential.

Ine firm that matches the invoice is alcoholic drinks big Diageo (LSE: DGE).

The aggressive benefit of this enterprise comes from its manufacturers. Names like Johnnie Walker, Tanqueray, and Smirnoff have been round for a very long time, they usually’re unlikely to go away any time quickly.

In the meantime, the corporate’s publicity to the world’s rising markets supplies the expansion potential. At present, the group generates round 40% of its gross sales in rising market international locations.

Now, Diageo is experiencing a couple of challenges proper now as a consequence of the truth that customers are reining of their spending. These challenges may persist within the brief time period so I’d look to construct up a place right here over time.

Taking a long-term view, nevertheless, I see a number of potential, particularly after the stock’s latest pullback.

It’s price noting that Diageo has a powerful dividend development observe report (20+ consecutive dividend will increase) and is shopping for again shares.

A digital transformation play

One other UK firm that has each aggressive benefits and long-term development potential is Sage (LSE: SGE). It’s a number one supplier of cloud-based accounting and payroll software program.

The aggressive benefit right here comes from the truth that as soon as an organisation selects accounting software program, it’s unlikely to change to a different supplier as a result of excessive prices of switching. Consequently, Sage has a excessive stage of recurring revenues.

As for the expansion potential, Sage is nicely positioned to profit from the ‘digital transformation’ theme. It additionally has the potential to frequently enhance its costs, given the aggressive benefit I discussed above.

The draw back to this stock is that, like a number of software program firms, it has a better valuation. Presently, the forward-looking price-to-earnings (P/E) ratio right here is about 28.

I’m comfy with the above-average valuation although, given the corporate’s recurring revenues and long-term development potential.

Tailwinds from the ageing inhabitants

Lastly, my third decide could be Smith & Nephew (LSE: SN.). It’s a healthcare firm that specialises in joint substitute options and superior wound care.

I feel this stock would complement my different two UK SIPP holdings properly.

First, it’s in a really totally different sector to the opposite two.

It has a a lot decrease valuation than these shares. Presently, the P/E ratio right here is simply 12. I see a number of worth at that a number of.

What I actually like about Smith & Nephew, nevertheless, is that it’s a play on the world’s ageing inhabitants.

In response to Fortune Enterprise Insights, the worldwide orthopaedic joint substitute market is projected to develop by round 8% per yr between now and 2030, because of the ageing inhabitants.

So, the corporate ought to have some massive tailwinds behind it within the coming years.

It’s price stating that some traders consider weight-loss medication are a significant risk to this firm.

I’m not satisfied they’re, nevertheless.

In a world that’s getting older, I feel this healthcare stock has baggage of potential.