There are many FTSE100 stocks I’m glad I bought and hope to hold onto forever. My list includes HSBC Holdings, M&G, Rolls-Royce AND A Scottish mortgage investment fund. Bbut if I was only allowed to have two, I would stop at the next pair. I hold both of them as part of my Self-Invested Personal Pension (SIPP) and have absolutely no intention of ever selling them.

Why do I rate Lloyds shares so highly?

My first choice is Lloyds Banking Group (LSE:LLOY). I think it’s a great portfolio builder. It offers investors both share price appreciation and dividend income potential, although like any other stock it is not without risk.

Lloyds almost sank the British economy during the financial crisis and only survived thanks to a £20.3 billion bailout. At least taxpayers got their money back. The government’s share sale raised £21.2 billion. However, investors suffered and Lloyds shares struggled for years. So I’m not too dewy-eyed here.

The company has discontinued its riskier activities and now focuses on the basics of everyday personal and business banking. With any luck, this should lower the future share price variability. The downside is that the company may have trouble growing. Especially with smaller banks heated on its heels.

Still, it’s making a lot of money, as evidenced by its full-year profits:

• 2025 – £6.7 billion
• 2024 – £6.0 billion
• 2023 – £7.5 billion
• 2022 – £6.9 billion
• 2021 – £6.9 billion

But markets don’t just want massive profits. They want these profits to continue to grow, which is not always possible, especially given the struggling British economy. The Lloyds share price has risen by an impressive 145% in five years, although there may be a slowdown from there. With any luck, the income should continue to flow. Over the past three years, it has increased shareholder payouts by as much as 15%.

The company’s shares are forecast to gain 3.74% this year and augment to 4.4% in 2027. And the share value seems decent, with a moderate price-to-earnings (P/E) ratio of 11.5. This won’t always be effective, but I think it’s worth considering for long-term investors.

Is BAE Systems stock also worth considering?

My second buy and hold forever stock is the FTSE 100 Defense Group BAE systems (LSE: BA). I base this choice on human nature. Unfortunately, humanity may have evolved dramatically since we first walked on two legs, but we remain a risky species. Now the West, Russia and China are once again facing each other as during the Cold War. We also have to face uncertainty in the Middle East.

The beneficiaries were defense stocks. Over the last five years, the BAE Systems share price has increased by as much as 268%. Recently, however, things have been uneven. Some investors put their profits in the bank and went out in search of the next massive growth sector. Others may have found the stock overpriced, given its forward P/E of around 25. That’s understandable. Investing is cyclical.

There are other dangers. Cash-strapped Western governments may find it hard to spend more on defense. Peace agreements in Ukraine and Iran would be fantastic news for humanity, but a blow to BAE Systems stock. Unfortunately, another geopolitical threat will undoubtedly arise, making this another investment worth considering.

Should you invest £5,000 in Lloyds Banking Group Plc now?

If investing expert Mark Rogers and his team have stock advice, it can pay to listen. After all, Twelfth Magpie’s flagship Share Advisor newsletter, which it has run for almost a decade, provides thousands of paying members with the best share recommendations from across the UK and US markets.

Mark believes there are 6 standout stocks that investors should consider buying right now. Want to check if Lloyds Banking Group Plc is on the list?

Harvey Jones owns shares in BAE Systems, HSBC Holdings, Lloyds Banking Group, M&G, Rolls-Royce and Scottish Mortgage Investment Trust.