What to think when buying shares.

MRLX69

Aegis wrote: »

Well, for a start cancel that appointment. They'll try to sell you some pretty awful products with high charges. If you want their sharedealing service, you can open that through their online banking. I've never used it, but it's quite a cheap way to build up a portfolio if you don't mind which days your shares are bought on.

If you want to deal in real time, then InvestDirect and Selftrade both come in fairly well recommended on here. InvestDirect is an HSBC sharedealing service, slightly cheaper than Selftrade (though I think the available limit orders are somewhat more restrictive than Selftrade), while Selftrade comes with a deal whereby you can get up to £80 cashback by searching for "Selftrade referral" on this forum.

If you'd prefer to deal with funds, specifically OEICs and Unit Trusts, then Hargreaves Lansdown now seems to be more or less the standard for the industry. There are a few others which I can't remember at this time in the morning, but they are excellent.


As you can see, even the decent providers vary depending on your investment strategies!

But if I JUST want a share dealing service, wouldn't you recommend Hoodless Brennan as they're the cheapest for dealing with a few g? (Just taking it straight from the MSE cheapest share dealing page....)

Aegis

MRLX69 wrote: »

But if I JUST want a share dealing service, wouldn't you recommend Hoodless Brennan as they're the cheapest for dealing with a few g? (Just taking it straight from the MSE cheapest share dealing page....)

I would if you were looking to trade a lot. Their inactivity fees make it less suitable for someone just wanting to build up an investment portfolio.

Ok, I forgot to add them

MRLX69

Aegis wrote: »

I would if you were looking to trade a lot. Their inactivity fees make it less suitable for someone just wanting to build up an investment portfolio.

Ok, I forgot to add them

There are inactivity fees?!... Please confirm

Thanks! (Not sure if that was a joke or not )

Aegis

MRLX69 wrote: »

There are inactivity fees?!... Please confirm

Thanks! (Not sure if that was a joke or not )

I believe they charge you an ongoing £5 per quarter if you make no trades.

wallaceneil

I am already saving with my company share saving scheme and have been offered another annual opportunity to start another 5 year share option scheme. Due to the current financial climate and the growing uncertantity in the stock market would I be better advised to put my money in a 5 year savings account, or take a chance on the stock market recovering over the next 5 years. Yor advice would be welcome.

Neil

EdInvestor wrote: »

I'd like to emphasise to anyone starting out buying shares not to overlook the importance of dividends.Most of the returns on stockmarket investing over the years come from reinvested divis, not changes in the share price.

Many people know this because they bought shares in the Thatcher era "Sid" privatisations or got windfall demutualisation shares - most of these companies pay good divis.

It's quite easy at the moment to put together a portfolio of shares which will give you a dividend yield of 5-6% a year (tax free to basic rate taxpayers, 25% to HRT). So you know that it's pretty certain you're going to get that 6% income return, even if the share price wobbles up and down.

Here's a few shares you could consider - and if you can buy all 10, it will be safer, because they are in different sectors. It's rare for all types of company to be out of favour at the same time.

Lloyds Bank 7.7% bank
United Utilities 7.2% water company
Northern Foods 5.9% food supplier to M&S
Dixons 5.7% retailer
BT 5.2% telecoms
Legal and General 5.0% life assurance
British American Tobacco 4.6% cigs
Scottish and Newcastle 4.6% beer
Pilkington 4.6% industrial/automotive glass
Shell 3.8% oil

Overall a 5.4% yield. This is the "forecast yield" - what analysts expect the company to pay out in dividends over the next year.
Better than cash.:)

These are mostly what they call "defensive" shares - when there's a downturn people tend to still use banks, pay their life insurance, drive cars, eat, drink, smoke and talk to each other on the phone. So shares like these did well during the dotcom crash and are still doing well today. They're all big well known companies too - size does matter

I can't claim credit for inventing this idea of getting a basket of high yield shares - it was dreamed up by a very experienced share guru at the Motley Fool.He calls it a High Yield Portfolio (HYP).

But I can say the idea works, I'm so keen on HYPs I now have two.

If you're young and looking to grow your savings, just reinvest the dividends and buy more shares.Do this every 6 months when they've mounted up a bit -you don't want to trade a lot, as the charges cut into your profits. If you need income, take the divis to spend. Otherwise just buy and forget......of course some people just can't resist checking.....;).

kirt_2

I own about 1000 shares in HBOS and they have offerred to sell me about 1400 shares at 113p. The current share price is about 70p. My thinking is that if i wanted I could buy shares from a broker at the current share price. Could anyone tell me why HBOS is trying to sell me and many others I should think, shares at 113p?

flashnazia

Aegis wrote: »

I would if you were looking to trade a lot. Their inactivity fees make it less suitable for someone just wanting to build up an investment portfolio.

Ok, I forgot to add them

I don't think they charge inactivity fees? Just looked on t & cs

digerati

kirt wrote: »

I own about 1000 shares in HBOS and they have offerred to sell me about 1400 shares at 113p. The current share price is about 70p. My thinking is that if i wanted I could buy shares from a broker at the current share price. Could anyone tell me why HBOS is trying to sell me and many others I should think, shares at 113p?

I'd buy in the market. You will pay brokerage and stamp duty, but it's much cheaper than taking up the rights (which were priced when the market was much higher). If you buy at around 70p then you get new Lloyds Banking Group shares @ 115.71 each since existing HBOS shares are converted at a ratio of 1.653:1 into new Lloyds Banking Group shares...

adamd1

I am new to investing. If I buy a share before its xd date, I pay stamp duty and a dealing cost. I collect the dividend, and the share drops by that amount, but usually picks up in a day or two. I sell the share having owned it for only a few days, collect the dividend and incur a cost (spread, stamp duty, dealing fee). This should still give me a few % on each transaction. Why could I not do this every week? In an ISA - tax free.

I haave not seen this discussed as a strategy, and there must be good reason for it. Advice from wiser heads wold be appreciated.

Jake'sGran

deemy2004 wrote: »

UU my biggest single holdling - reporting today.. fingers crossed...

I have these UU shares in my single company BG PEP (does anyone remember those?) and the dividends from the FOUR companies now in that PEP are always used to buy more UUs. This is one I managed to get right:j
Not so lucky with some others.