Which cheap stocks to invest in?

Aminatidi

CashMoney said:

Ok so its not the amount of shares I'm looking at for this one, just wanted to invest a small amount(max £500) in 1 or 2 companies whether that gives me 5 shares in 1 company and 300 in another.

If you're looking at reasonably small amounts have you ruled out simply using an investment trust or open ended fund?

You can go as diverse as you like or get a good degree of concentration (Finsbury Growth Trust or Troy Income & Growth Trust leap to mind for this) without exposing yourself to the fortunes of just one or two businesses.

AnotherJoe

CashMoney said:

Hi bowlhead, I am thinking long term (after Covid) so yes not bothered about no payments in the immediate future. I only picked out those from a few articles I've read online that are "cheap" and pay (in normal circumstances) dividends. Looking for anything under £3 a share.

Unless you only have £3 that makes no sense.

Example, I owned Apple shares when they were $700 each. Wow that's expensive for a share. 
Then I woke up one morning and they were $100 each (and I had 7x as many so I didn't lose out)  ........... were they now much cheaper at $100?

Gary1984

The OP's definition of cheapis very odd. But if you're looking for shares that pay good dividends perhaps take a look at the High Yield Portfolio (HYP) board over at the lemon fool. From memory some of the dividend paying shares considered good quality are: Unilever, rio tinto, L&G, Admiral, National Grid, Shell, Lloyds, Astra Zeneca, Vodafone. You could also do worse than a Ftse250 or Asia ex-pacific tracker. Numerous investment trusts also target regular increasing dividends. 

83705628

Buy an ETF that buys undervalued stocks like VVAL?

Doshwaster

Big Pharma are always a good choice for dividends. Even during an economic downturn people will keep being sick and need medicines. With the likes of GSK or AZ you aren't going to get rapid growth (or rapid fall) in share price as you would with some startup biotechs but they are good companies at generating cash.

AnotherJoe

Doshwaster said:

Big Pharma are always a good choice for dividends. Even during an economic downturn people will keep being sick and need medicines. With the likes of GSK or AZ you aren't going to get rapid growth (or rapid fall) in share price as you would with some startup biotechs but they are good companies at generating cash.

That's why I have healthcare as one of my two satellite investments outside the core generic pooled investments  and scary individual company shares.