Top Three UK Property Developers To Invest In

Investing in real estate is profitable if you get a headstart in the right direction. However, The upfront costs of becoming a private landlord or a property developer along with the stress and risks involved make the prospect of buying shares in the professionals much more appealing, But the trick is to find the right company! You can do so by researching and evaluating the track record of companies before investing. 

Financial details about a company, such as dividend payouts, market cap, and gross profit, can tell a lot about its performance, and it is always wise to know these details. 

So which are the best property developers to invest in the UK? How to measure a company’s performance? Are companies that produce building materials ideal for investment?

If you have these questions in your mind, you have landed on the right page. We have done hours of research to bring you three of the best businesses that provide you with the best returns. 

Without further ado, let’s get started.

How to measure a company’s performance?

Measuring a company’s financial performance is crucial before investing. These details help you evaluate various aspects of a company and how you can benefit from it.

Here are some of the crucial factors that you need to evaluate before investing:

Company’s Liquidity

A company’s liquidity is one of the crucial financial metrics you need to consider before investing. Financial statements, such as income statements, cash flow, and balance sheets, can help you learn more about the company’s performance over the years.

One of the best ways is to analyze the balance sheet’s liquidity in cash form. In other words, a company must have enough money to support or cover its expenses. Additionally, checking out the current ratio can reveal a company’s financial position.

Income Statement

After determining liquidity, your next step should be to evaluate a company’s income statement, including financial metrics, such as net income growth and earnings growth.

These metrics can help you understand the financial condition of a company and simplify your investment decision. For instance, evaluating the growth lines and checking whether the lines are parallel can help you decide better. 

Examine Returns

Another way of finding out the financial position of a company is by checking its Examine Returns, such as Return on equity, Return on Assets, and Return on capital. If a company has strong returns, it is undoubtedly worth a shot!

Generally, a company with a 30% annual return is the one you should consider. Additionally, you can check how a company is using its assets to generate revenue before investing.

Operating Cash Flow

Operating cash flow is another crucial factor you need to consider before making an investment. You can check the operating cash flow by evaluating the cash flow statement and determining whether the company generates real cash. 

For instance, it would be wise to invest in a company wherein cash flow increases even after making capital expenses. However, if the company makes money by selling business assets and stocks, it is better to avoid it.

Now that you know what to consider before investing, here are the top three companies worth investing in the UK.

1. Taylor Wimpey

If you want to invest in a business that excels in building houses, Taylor Wimpey can be your ideal pick! Did you know? It is one of the best companies with the highest market capitalization. No wonder why it has thousands of happy clients!  

They state they build more than 15,000 high-quality homes a year and in the first half of the year, they managed 7303.

Taylor Wimpey is one of the largest house-building companies in the UK. Formerly known as Taylor Woodrow plc, the company merged with its fellow rival George Wimpey in 2007. Besides, you can find this company on the FTSE 100 Index of the London Stock Exchange. 

The company has an excellent track record of providing quality houses to its clients. Additionally, their market evaluation has been a profitable prospect for investors looking for a different approach to investing in real estate in the UK.

Market cap

As per the latest standings, Taylor Wimpey’s market cap stands at 165.50 GBX. The company has been maintaining a consistent run on the stock ratings, which is why they are considered one of the best businesses for investment. 

Dividend payout

Taylor Wimpey follows an excellent strategy to manage the market cycle. This strategy helps the company to balance its capital requirements while returning maximum capital to its shareholders. Additionally, they maintain their balance sheet flexibility and strength without altering the capital structure.

According to the latest reports, Taylor Wimpey paid 4.14 pence a share dividend representing a 2.67% yield, making them a lucrative option for aspiring stock and share investors. These metrics also make them a reliable business that can offer profitable returns without taking excessive risks.

Plus, you can opt for a bank transfer or deposit in your building society account to receive your dividend payments. 

Gross profit

The housing demand in the UK has seen a new surge, and companies like Taylor Wimpey consider this opportunity to maintain their position as Britain’s third-largest house-building company. 

According to reports, the company forecasts an operating profit of $1.14 billion or 820 million pounds in 2021, surpassing their top-end range of 756 – 808 million pounds. 

Growth

After Covid-19 halted the works and earnings of Taylor Wimpey, the company overcame the hurdles of 2020 by achieving a new feat. According to reports, the company constructed 7,300 homes in the first half of 2021 and planned to expand this tally to 14,000. 

The target of building 14,000 houses in 2021 would propel their operating profit to about 820 million pounds, which is a significant leap forward compared to last year. 

Taylor Wimpey delivers high-quality homes and ensures long-term sustainability, making it a profitable investment option for many. And we can’t think of any reason why this company shouldn’t be on your list!

2. Barratt Developments

Barrat Developments has been a consistent name featuring in the London Stock Exchange’s FTSE 100 Index because of its high market capitalization. It is another renowned house-building company in the UK and operates across Wales, England, and Scotland.

The company started its journey as Greensitt Bros in 1958 but acquired its present credentials after Sir Lawrie Barratt assumed the company control. Besides getting a new name, the company shifted its office from Newcastle to Coalville in Leicestershire.

The company is a lucrative option for investors in stocks or shares with high returns. 

Market cap

The latest market cap of Barratt Developments stands at 682.19 GBX. The company has been a favourite of investors as it maintains a consistent run on the stock ratings. 

Dividend payout

After Covid 19 played havoc in 2020, Barratt Developments churned out a new dividend policy, ensuring a 7.5 pence share dividend representing a 4.45% yield. The policy came into effect in February 2021, with final payments slated to be released in November 2021. 

You can also opt for their Dividend Re-Investment Plan that allows you to purchase additional Barratt shares with your dividend payouts. 

Gross profit

Barratt Developments have seen an upward trend over the years. Their revenue grew from 3.42bn to 4.81bn. The figures improved the company’s net income by 65.07%, from 399.70 million to 659.80 million. That’s impressive! 

Growth

After suffering a significant setback in 2020 due to Covid-19, Barratt Developments experienced a successful run in 2021. Their growth report indicates an increase of 64.66% in earnings per share. This percentage can become a deciding factor for aspiring investors looking for an alternative way to invest in real estate.

According to reports, Barratt Developments expects to complete more than 16,250 homes in 2021. 

3. Persimmon plc

Persimmon plc is a leading house-building company that can act as a safe refuge for aspiring investors. The company is an integral part of the London Stock Exchange’s FTSE 100 Index and is one of the largest house-building companies with excellent market capitalization.

Duncan Davidson founded the company in 1972 and named it after the horse that won the 1896 St. Leger and Derby. The company began its operations regionally but soon earned a global reputation because of its high-quality projects.

By the end of 2001, Persimmon started delivering 12,000 houses per year, which is an incredible feat to achieve. 

Market cap

Persimmon is a consistent name in the stock exchange. As per the latest records, the company had a market cap of 2,747.00 GBX with fewer dips in the past months. It is undoubtedly one of the best businesses to invest in to reap higher returns.

Dividend payout

According to reports, Persimmon pays two dividends each year. However, they may run special dividend schemes from time to time (based on special requirements). 

The company has a consistent dividend payout policy, which allows its beneficiaries to reap returns two times each year. Despite facing a steep challenge last year due to the Covid-19 crisis, the company plans to increase its dividend payout, which is good news for investors.

Gross profit

As per the company’s performance report, Persimmon generated housing revenue of 1.75 billion pounds in the first half of 2021, which is a significant jump from 1.10 billion pounds during the same period last year. 

The figures translate into higher profit numbers with 480.1 million pounds compared to 292.4 million pounds last year. Persimmon has been delivering robust financial performance and is growing as a profitable investment option for aspiring investors.

Growth

Apart from returning magic profit figures, the company has been growing in its business and customer satisfaction. Their promise to deliver high-quality houses has put them on the map, and many customers prefer to own a Persimmon house today.

According to the latest reports, Persimmon completed 7,406 houses in the first half of 2021 compared to 4,900 homes in 2020. 

Creating sustainable value, strong trading performance, and a positive outlook are a few factors that make Persimmon a profitable option for investors. 

Other investment alternatives

Apart from investing in large house-building companies, businesses that manufacture building materials and bricks can become an excellent alternative for investors. 

Since building materials are essential to building houses, you can get high returns by investing in their stocks. However, with a sea of businesses claiming to be the best, it can get pretty overwhelming to decide on one! 

After weeks of scouring the real estate market and research, we landed on Ibstock as the best alternative investment. Why? To begin with, they offer higher returns than their competitors.

Ibstock

Ibstock is one of the leading suppliers of brick products in the UK. The company has a long history of producing high-quality building materials that date back to the early 1800s. 

Their products include:

• Clay bricks

• Concrete roof tiles

• Concrete fencing

• Brick components

• Pre-stressed concrete products

• Concrete rail products

The company’s strategy to deliver value to its customers has driven its performance in recent years. This excellent market performance makes them one of the most profitable companies for investors. They also have signed lucrative contracts with the British government to supply goods for infrastructure upgrades planned over the next few years. With Brexit and supply chain issues becoming more of an issue a UK based company of this size is in a great position to propel itself into a profitable future.

Market cap

According to the latest standings, the market cap of Ibstock plc stands at 217.00 GBX with fewer dips. Its consistent run on the exchange can provide profitable returns for investors.

Dividend payout

Ibstock plc pays two dividends per year with an approximate dividend cover of 2.2 pence. The payout may differ if the company rolls out special schemes as per their requirements. 

According to reports, the last dividend paid by the company was 2.5 pence per share, which is an ideal amount for those looking for an alternate trading option. 

Gross profit

The company increased its total revenue by 54% to 202 million pounds by June 2021. The gross profit for the company stood at 72 million pounds with 40.81 million pounds as operating income and 10.97 million pounds as their net income. 

Considering that the company achieved a 54% jump compared to their last revenue, this may be a great time to invest some money!

Growth

Although Ibstock plc is not a widely-known stock, Perhaps due to the company’s nature as a raw materials manufacturer which isn’t as exciting as the popular out fancy tech companies, its recent performance in the London Stock Exchange has turned many heads in the industry. Its compelling stock price looks like a lucrative option for many investors!

Conclusion

Investing in any company can be tricky, especially if you are a beginner. However, with little effort and a detailed evaluation of the market, you can find yourself a profitable deal in any market space. The property market in the UK is experiencing rapid growth and with a variety of investment options for everyone, it can be a difficult task to narrow it down. By investing in home builders you get exposure to the booming housing market but get some insulation from the volatility as new homes are still needed across the country. If the housing market did experience a dip the profit the property developers make can absorb some of the blow. The one major concern would be problems with raw materials which we could experience with supply chain issues due to Brexit and covid. 

It would be best to research, compare, and evaluate the companies before investing, but as the saying goes during a gold rush sell shovels and I feel in a way home builders take that role in the housing market.

FreeTrade Review – The best Commission-free stock trading and investment app

Freetrade is an online trading service that started in the UK in 2016. It provides commission-free trading in stocks and is safe as it is regulated by the top tier regulator FCA. But should you choose this service over the others when others have been into business for so long? How does it compare with other services? Here is a detailed overview of Freetrade so you can have a better idea of why and when you should use it.

What is Freetrade?

Free trade was founded in 2016 by Dodds and Davide Fioranelli for the sole purpose of making stock trading easy and at the same time taking ownership of stocks affordable. They used to work in KPMG, a corporate finance firm from which they gained experience.

There isn’t much going on with the service as of yet as you don’t get all those extra features like precise calculations and speculations as offered by other services like Trade212 and Lansdown. However, they are implementing more analytic data such as Dividend yields, market caps. P/E ratio.  But what this service is known for is its low-cost trading account. The USP is that it allows you to trade with real shares with no commissions or any kind of fees. This helps those people who build a portfolio who find investing a large sum of money as a risk. Because you can start trading with only one pound, it is considered risk free.

You only need a Smartphone app to get started and the best thing is that you can even hold your shares in the ISA to keep yourself tax-free, Currently, they have a user base of 250000 and increasing.

How does it work?

In case you are using your trading platform, it can be expensive. The traditional platforms like Landsdoen and Its investors focus more on funds thereby increasing the cost of maintaining and trading stocks. But if you look at Freetrade, it is solely share based. It is extremely convenient to build a portfolio with just one pound of investment.

With free trade, you can invest by purchasing shares of companies in the UK as well as the US. It also has the option for exchange-traded funds. For a basic trading account, you only have to pay the basic stamp duty. If you want to hold your shares in the ISA, it will cost you three pounds a month. For depositing money, you can either set up a bank transfer or you can use your credit card to make direct payments.

It is recommended to use google pay as it will be instantly transferred. For bank transfer, you may have to wait for a while. For withdrawals, you can always transfer your funds to the same account you used with Freetrade and your funds will be transferred within 5 working days. If you urgently need to withdraw, you can pay an additional five-pound and withdraw instantly. Do remember that you will have to request before 5 pm and for solid investments, you will have to wait until the settlement of the case.

How to set up a Freetrade account

Opening an account with Freetrade is fairly simple. It has a detailed website that has all the information you are going to need to register your account. But you cannot register on their website. The only way to register is through your Smartphone. You can easily download the app from the Android play store or App store for apple. Registering your account and setting it up only takes minutes. This shows the developer’s intentions. This platform is only intended for those people who want to manage their money through their app. Just start by registering through your email and you will be sent a verification code to activate your account.

The next step would be to enter your personal details like your address, name, DOB, Insurance number, etc. You can link your bank account to transfer funds and also have the option to use Google pay or Apple pay. This app also allows you to search for ETDs and stocks and you can also see the variation in prices based on their weekly, daily or monthly report. When you invest your money, you can monitor your portfolio to see how it is performing and easily buy and sell stocks. The interface is simple and intuitive and can be deemed to be user friendly. It is also very informative as it shows what the share price is and how much stock you receive based on your investment.

Freetrade features

• Freetrade offers commission-free trading which means it is easy to go from one to ten and ten to a hundred pounds in no time. Freetrade won’t charge you anything for shares. This is a DIY investment that returns to you fully.

• The best thing about free trade is that it allows you to start with just one pound with minimal risk.

• Allows you to invest in major companies like Google, Facebook, and other giants.

• You can have dividends and interests free of tax by holding your funds in the ISA. Even if you have a previously existing ISA account, you can still transfer that ISA money to your current account.

• The free share feature allows you to have shares in the company worth three to over three hundred pounds if you refer a friend on the Freetrade platform. This is a way to have more users for this platform and for retaining them. This also allows users more opportunities to go for high flying stocks.

• Some companies provide perks to their shareholders. You can expect to get some discounts on their product if you can earn a specific amount. This is a nice way to save.

• The basic account that you get with free trade is free and it allows you to sell or keep shares. If you want a service from which you can get tax free dividends, then Freetrade is the best choice.

• Comes with Free trade plus service. This is a subscription that allows you to have access to more high flying stocks. It also comes with additional beneficial features. For example, it has priority alerts and stop-loss features which prevents you from losing more money than you earn.

How does Freetrade make money?

One must ask if it is all for free, how does Freetrade itself make money. For sure it is not a charity. The basic service is free but they earn their part from their monthly fees from optional subscriptions such as:

• Freetrade ISA, £3/month

• Freetrade Plus, £9.99/month

• A fee of 0.45% of the Base FX rate on each US order placed  (The standard FX rate is 1.50%)

• A small amount of interest earned from banks on customers’ cash

As a rough comparison, other brokerages can charge a 1% annual management fee for an ISA account. 

Freetrade is current £36 a year 

A portfolio of £5000 with another brokerage could be £50 (this is only going to get more expensive as your portfolio grows eroding your tax free gains)

Freetrade commission

Freetrade is quickly becoming one of the UK’s best online apps for trading. The app is hassle-free and simple to use. It’s great for the youngsters and the masses as well. One thing that sets this app apart from any other trading platform is that it is commission-free. No commission is charged while buying or selling shares from Freetrade.

In addition, it offers over 1000 stocks and ETFs (Exchange Traded Fund) free of commission. ETF comprises securities that are traded like stock exchanges. It’s similar to mutual funds. However, ETFs are sold and bought from other owners during stock exchanges all through the day. But with mutual funds, the trade starts after the market is closed.

Through Freetrade, you can buy shares and sell them with a profit. The app’s popularity is growing at a fast phase, especially with the influx of retail investors. If you are new to stocks and investment, this app would be great for you. Furthermore, the app is mainly built keeping the youngsters in mind.

Unlike other trading platforms, accessibility is hassle-free and straightforward. Anyone can use it without any issue. Note that this app does not offer advice on financial services. So, with freedom comes the responsibility to invest in the right stock.

Freetrades broker

Freetrade is a trading app that runs solely on a mobile phone. It allows easy access to any user, making it a user-friendly app for trading. The app currently doesn’t work on the web platform, but the company is working on it. So, in the coming years, you might be able to access it through the desktop.

There are various aspects to consider while looking for a good broker service. First, it should be user-friendly along with easy accessibility. In addition, it should have good customer service and low fees. It should also have a low minimum deposit.

Also, opening a new account process should be simple. Furthermore, one of the most important aspects is safety. You should see how secure your account is and if the authorities regulate it.

With that said, Freetrade broker is an excellent app for the beginner. It’s a mobile-based trading app that offers ease of use. It’s a simple two-step login process and has a good function for searches. The account opening process is fast and fully digital. As a broker service, Freetrade offers a multitude of features along with safety.

Freetrade is regulated by UK’s FCA (Financial Conduct Authority). It is an investor protection scheme that offers protection if a broker becomes inoperative. In addition, the customers under Freetrade are protected by the FSCS (Financial Services Compensation Scheme).

The scheme provides a protection amount with a limit of £85,000. Freetrade is a trusted broker that ticks all the excellent prospects of being a trusted trading platform.

Freetrade fee

Freetrade is free of charge when it comes to trading stocks and ETFs. In addition, it also doesn’t have withdrawal fees. Initially, it only had free charges for basic orders. However, starting from February 2020, it cancelled commission on instant orders too. Basic orders are available only after the market is closed. With instant order, you can place it when the market is up for operation.

Furthermore, it offers the lowest fees for trading in ETFs and stocks in the US and UK. Also, it has low costs for non-trading as well. Freetrade doesn’t charge inactivity fees. There is also a no-account fee for a basic account. However, if you choose Freetrade Plus, you will have to pay a monthly fee of £9.99. But with this account, you get more stocks options, priority customer service and limited options.

Overall, Freetrade offers a good bargain. It doesn’t have a withdrawal fee but is chargeable if you withdraw on the same day. It will cost you around £5. The charges might be higher as compared to some rival companies. However, one cannot deny the fact it also offers exciting features.

Freetrade referral

Freetrade comes with a multitude of features where some might help you to make money. For instance, you could earn a free share worth up to £200 if you signed up to Freetrade through a referral link. In addition, the person who referred you also will get some of the free shares.

Furthermore, you don’t have to be a YouTuber or an influencer to be able to refer friends to Freetrade. The feature is available for anybody that signs up for this app. In addition, it is also currently unlimited. You share the referral link with as many friends as you want.

And to do this, the process is simple and easy. First, you need to go to the home page of the app. There you will see the overall portfolio. Next to the portfolio, you will see a free share button at the top right corner. You can click the free share button and then click on the send free share button. With that, you will get multiple ways to share the link.

In addition, you should be able to activate the free share. The person that you have referred should sign up with at least £1 to activate the reward. It’s a great prospect to make money and without any limits. Some people might find it sceptical, but it’s an excellent way to earn money or shares through referrals.

Along with the low cost and free commission, Freetrade offers you an easy way to earn money. You can send the referral link to your friends or relatives, where both parties will equally get free shares. For beginners, this would be an excellent way to start your investment journey. Through a referral, you can begin earning shares and sell them when the price is higher. It can be a slow process, but it will all be worth it eventually.

Furthermore, with Freetrade, you don’t have to worry about fees. It’s low both for trading and non-trading. In addition, it’s a trustworthy investment platform that is regulated by high-tier authorities.

Freetrade minimum deposit

Freetrade comes with no real minimum deposit as the actual limit is £1. Along with free withdrawal, you can open an account without having to pay any amount. Any traders would find this feature interesting and profitable too. In addition, you also don’t have to worry about account creating process. It’s fast and fully digital! Also, one of the significant aspects of this app is that it is user-friendly.

Anyone can create an account without any hassle. You can deposit without having to pay any fees. Furthermore, you can deposit or withdraw through Google pay, Apple pay or bank transfer.

For withdrawal, Freetrade doesn’t charge fees for the non-same day withdrawal option. However, if you choose same-day withdrawal, you will have to pay a fee of £5.

Furthermore, you cannot withdraw through a debit card. It is only possible through electronic wallets and bank transfers. Unlike other brokers, it gives you the option to withdraw through electronic wallets. Also, it will take two days to withdraw through bank transfer.

Also, withdrawing money from Freetrade is an easy process. You need to log in to the trading app and go to the account tab. With that, click withdraw and type the amount you wish, and then you can proceed with the withdrawal.

It also offers you the option to open four different types of accounts:

• General investment account (GIA): This account is mainly for ETF and stock trading. There is no monthly fee, and the order types can be both basic and instant.

• Investment saving account (ISA): It’s a saving account with tax efficiency. You can trade both ETF and stock along with fractional shares. However, you have to pay a monthly fee of £3, and the order type is only basic.

• Freetrade Plus account: It is a new account, and under this, it offers different product portfolios and types of orders. However, it comes with a cost. You will have to pay £9.99 per month. But on the good side, you can trade both GIA and fractional shares. It is also tax efficient like ISA.

• SIPP (Self-invested Personal Pension) account: It is an excellent retirement saving account for pension savings. SIPP comes with a monthly fee that will cost £9.99 per month. Also, the product its offers are both GIA and fractional shares.

You can choose any account that suits your requirements. The step to creating the account is easy and will take only ten to fifteen minutes. However, you should note that it doesn’t accept credit cards. It only accepts debit cards for deposits.

Also, Freetrade only has a single base currency. It is only through GBP (Great British Pound). Unlike other brokers, it trades only through a single currency. So, if you have a bank account with a different currency, there will be a conversion fee.

But there is a way to avoid the conversion fees. You can open a multi-currency bank account through a digital bank. Digital banks offer accounts with different currencies along with reasonable exchange rates. In addition, you also get free or low-cost bank transfers for international transactions.

Is Freetrade safe?

If you are worried about the safety of your money then stop. This service is regulated by one of the top tier regulators. There is no question of your money going anywhere except trade. The financial conduct authority makes sure that each customer is treated fairly. If you have complaints, you have the option to complain to the platform as well as the financial ombudsman service in case your issue is not resolved. It also acts as principal secured financing because your assets are protected up to the value of 85000 pounds by the U.K. financial compensation scheme in case the platform becomes insolvent/bankrupt like all major banks. Other losses that occur through unsound decisions are not covered i.e. you keep buying high and selling low.

Pros

• The Freetrade platform is very easy to set up where you can very easily invest your money securely in the stock market within a matter of seconds because of the fast and simple process.

• The user interface is very user-friendly and the app is designed to be very simple.

  

• The app is very well organized and is arranged in easy to use five sections which include your insights, portfolio, information on stocks and ETFs, and where your money is going.

• Unlike other traditional stock trading, this does not cost you anything. Furthermore, it doesn’t have any commission, so you can increase your profits fast.

• A growing list of international stock options as well as IPO’s.

• It allows you to hold your shares in the ISA where you can be free of all taxes.

• It has a huge community where users can learn from the experiences of other traders.

Cons

• The biggest risk of trading with this platform is that it is easy to lose a lot of money without even knowing.

• There is not any kind of detailed information or warnings regarding stocks.

• Part of this has to do with the easy to use interface. It is very easy to buy and sell shares with this platform that it almost becomes like an addictive game.

• While the figures are decreasing, one doesn’t realize how much money he is losing.

• There is no trading limit to stop overspending like on most gambling websites.

• There is little to no research tools available for the user to analyze his place in the market and the condition of the stocks.

• There is nothing to tell neither you about how the stocks are progressing nor any news page where you can have an update about the companies.

• It is all share-based and there are no funds. Funds can diversify shares but in Freetrade you are only limited to stocks.

• Freetrade only has companies enlisted in the UK and US which means that you are left out of all other companies from Europe.

Free trade is essentially ETF and stock trading. While it is easy to maintain and open an account and trading seems effortless, it doesn’t have any protection from over-trading neither it provides many tools to analyze the stocks. Furthermore, cards are available only for deposits and not withdrawals.

Free trade ISA

When you are investing, there is always more risk of loss than profit. Couple that with tax laws and commissions, brokerage fees and you are left with pretty much nothing. Freetrade has a three-pound monthly fee for holding your shares in the ISA. ISA rules have different tax rules and this can save you from taxes.

• Tax-efficient

With the ISA there is no income tax or capital gains on your investments and return therefore you are always tax-free

• Limit

You can deposit up to £20000 pounds per year for a three-pound monthly fee.

• Long-term investments

While holding your investments in the ISA, you can secure your dividends and capital gains by making them tax-free. This allows your wealth to increase much faster. Furthermore, your investments are secured for the long term.

Why should you open an ISA with Freetrade?

• Commission-free

When you open ISA with Freetrade, there are no commissions whatsoever for buying and selling the stocks. This essentially means that your investments can grow manifolds in no time.

• Allows instant trading

Freetrade allows unlimited instant trades for free during the stock market hours.

• Safe and secure

As Freetrade is one of the few services regulated by the top tier regulator FCA, your investments are secured and safe. Furthermore, you are also covered by the Financial Compensation Scheme as well.

• Low fees

Freetrade doesn’t have hidden charges or vague fee structures. It charges three pounds flat every month for holding your investments in the ISA. This way you can grow your investments without having to worry about the increased fees.

• High-quality stocks

Freetrade allows you to choose from several high-flying stocks like that of Google, Apple, and many others.

• Fractional shares

Here is something that separates this service from others. Even if you have to buy the most expensive share, you can have a chunk of it for yourself for as low as two pounds. This is very good if you are looking to make a more diverse portfolio for yourself.

• Support

Freetrade has amazing support with fast resolution times. They are there for you when you need them. For ISA they have extended support as well.

 

 

Freetrade vs Trading 212

Both services have a lot to offer. Both allow you to trade stocks for free without even having to pay any commission fees. Other companies like eToro are also following suit. Freetrade allows you to trade in stocks and ETFs while Trade212 allows you to trade in instruments. You can trade over 1800 of them. Instruments such as commodities like oil and gold, stocks, currencies, and cryptocurrencies are some things that you can expect to trade-in. In this manner, Trade 212 has a broader scope. Let us see how these two free trading services compare with each other.

Both the Freetrade and Trade212 are the same in terms of Stocks and shares, ISA, Fractional shares, and Ethical investing practices. Neither of the two services provides anything for Pension (SIPP) or Lifetime ISA (LISA). Both platforms have apps for Desktop, Android, and iOS platforms. Trade212 has a lot of Guides and other information on the available products while Freetrade provides nothing like that. It has limited research tools as well unlike Traded212 which allows you an in-depth analysis. Trade212 offers demo accounts and has a good number of videos and walkthroughs while Freetrade doesn’t have any of those.

Costs

While both of the platforms are absolutely free and they charge you almost nothing, there are but few differences between the two when it comes to actual costs. Trade212 does not charge anything except for the 0.5 per cent foreign exchange fee. There are also some incumbrances on the deposit amount and withdrawals as well.

Compared to this Freetrade also has some charges. For example, it charges 0.45 per cent for foreign exchange if you are buying shares from another country. There are also a couple of charges to use their stocks. As for withdrawal, there is no fee but if you want the same day withdrawal, you will have to pay as much as five pounds. These fees are still peanuts if compared to other trading platforms. On other platforms, you can easily incur charges as much as ten pounds that decreases your returns. This ensures a good deal of incurring a lot of profits without having to spend money.

Demo account

Freetrade does not offer Demo accounts. This means that you have to go straight into trading without practising. Trading212 however, has Demo accounts and you can practice as much as you want before going into the real thing. Once you feel that you are ready to trade, you can try this for real. The good thing is that it lets you practice on a Demo account without having to register through an Email. But if you want to have an insight into your stocks then you will have to sign up for them.

Is Freetrade better than Trading 212?

Both services are amazing choices for free trading. Freetrade is simple to use and aims at new users. Trade212 has a lot of options and is a comparatively well-made platform for more advanced users. That is why it gives you a demo account to practice first. Neither of these two will give you a pre-made portfolio and you will have to make your own. If you want pre-made portfolios then these services might not be for you. We think that both Trading 212 and Freetrade have their own pros and cons making them suitable for a variety of users.

Freetrade vs Lansdown

• Interface

Both the platforms have an easy to use interface and allow for fast trading options.

• Stocks

They have free stocks and provide the option for ETF trading as well.

• App

Both platforms have mobile and desktop apps for easy usage.

• Learning tools

Both platforms have intuitive learning tools that educate the user of the trading principles and best practices.

• Customer service

Both platforms have great customer service who are always there to help you.

• Investor protection

Both the platforms offer a high level of investor protection

• Clients

The majority of the clients on both platforms are from the top tier authorities.

• Stock exchange listing

Lansdown is listed on the stock exchange while Freetrade isn’t.

• Negative balance protection

Freetrade does not have protection for the negative balance.

• Banking license

Neither of the platforms holds a banking license.

Freetrade offers almost no tools to properly research the stocks and has a very limited Portfolio. Furthermore, the Debit card can only be used for deposits and not for withdrawals. On the other hand, Lansdown has a high fee for ETFs and stocks and if you are outside of the UK, you have to open an offline account. Furthermore, if you want to trade in any other currency, you cannot do it with Lansdown.

Bottom line

Freetrade is a comparatively new company in its initial stages. Established in 2016 it has grown massively and has a good track record as a broker. It even survived the financial crises and has sustained its existence. Freetrade is regulated by top tier regulators and is, therefore, a safe platform to trade on. Furthermore, the PEC also does an annual audit of the company that provides a high degree of investor protection.

Free trade allows trading in stocks and ETFs with a great fee structure. Starting with almost nothing you can build a considerably vibrant portfolio because you get to purchase a part of the most expensive stocks for just two pounds. The account opening is easy and pretty fast. The app is intuitive and easy to use while the whole thing is very user-friendly.

Although it has some drawbacks like the inability to go beyond the US and UK stocks and the limitation imposed on credit cards plus the severe lack of research tools. But it is a great choice for people if you want an easy-to-use trading system with instant trades and execution on a very low fee. If you are looking for tax-free investments and want to hold them in the ISA then Freetrade is a great choice indeed.

 

Best EV Stocks that Pay Dividends

With the steady growth of Electric Vehicles (EVs) in the automobile industry, early investors may start reaping higher benefits sooner than later. However, the general trend among technology companies is that they don’t normally pay dividends (Eg. Tesla). So, finding the best EV stocks that pay dividends can be an uphill climb.

Fortunately, we’ve rounded up the best picks based on in-depth research and expert advice. So, you don’t have to go through the gruelling process of researching and identifying these companies.

But before we really get into the details of which EV stocks to choose, let’s get an understanding of the basics first.

What are EV stocks?

 

EV stocks are the stocks of those companies that design, create, develop, and produce electric vehicles, including their associated components. So, EV

 stocks do not only cover manufacturers of electric cars. They may include developers of batteries, battery chargers, charging stations, and related

 smart-car technologies.

EV stocks were among the best-performing stocks in the world for the past year. So, it makes sense to invest in it right now. So, it makes sense to invest in this new market because the prospects look bright.

Also, with the world gradually making the shift to green and renewable fuel, the EV market and stocks are bound to see growth in the coming years. So, investing in reliable EV stocks that pay dividends can be a wise move right now.

Do all EV stocks pay dividends?

No. Most EV stocks do not offer regular dividends to their shareholders. In fact, technology companies are notorious for not paying out dividends. The main reason is that these companies have to reinvest their earnings into the company.

If you know anything about EV markets, you know that industry giants like Tesla seem to be enjoying all the limelight. If you consider how Tesla has grown over the last 5-6 years, they seem to be breaking records in terms of growth. But most of their total revenue goes back into operations costs and capital expenditure. So, you could say that their operating profit isn’t really enough to pay dividends.

Another example of an EV giant not paying dividends is NIO Limited. While other players in the automobile industry suffered during the pandemic, this Chinese EV manufacturer experienced incredible growth.

With a market cap of over $70 Billion, it’s in the company of tech giants who pay dividends. But NIO still refrains from starting a dividend payout. Like Tesla, they also redirect most of their total earnings to R&D, administrative expenses, and further development.

Top Picks for EV stocks that pay dividends

So, we know what EV stocks are and why some of the biggest EV brands do not pay dividends. Today, we’re interested in bringing out the EV stocks that do pay dividends.

Remember that these companies are all associated with products services that go into the EV industry. And the list is not in any particular order. Those aside, let’s look at some of the best dividend-paying EV stocks to invest in right now.

Aptiv PLC

April is a renowned global tech company that focuses on sustainable technology in a wide range of niches. But their recent success has been in the automobile industry. The company excels in creating electronic systems and automated features in EVs based on green solutions and clean energy.

The Nasdaq Real-Time Price reveals that Aptiv stock price is hovering around the $140 mark at the moment. That makes it an affordable but valuable price for a growing EV stock.

Aptiv’s dividend yield has averaged around 1% steadily for several quarters now. The yield percentage isn’t very high. But the steady flow of dividends makes it a worthwhile investment in the long run. For most quarters of 2020, the dividend yield constantly stayed at $0.22.

Aptiv’s market cap is just short of $40 billion ($39.09 billion) right now. It’s a marked increase from the small beginnings that the company had in its initial years.

The company’s turnover suffered a little during mid-2020 because of the pandemic. But by Dec 2020, Aptiv’s total revenue already crossed $4.2 billion. As 2021 progresses, it looks like their total revenue will keep growing.

Aptiv’s current value is higher than 93% of the stocks in the US. So, it has an enviable position in the market as far as its worth is concerned.

BYD Company Ltd.

BYD is another EV stock that’s worth exploring, given the current scenario. BYD Co boasts of being a fast-growing, high-tech company. In the course of over 25 years, BYD has secured 30 industrial parks in a variety of locations around the world.

BYD deals with a wide range of new energy solutions and innovations. With the aim of creating a zero-emissions economy, BYD creates batteries, commercial vehicles, transits, and passenger cars that all run on renewable energy. And their EVs are among their most successful products. So, it’s a good example of stable EV stocks that pay dividends.

Their stocks currently range about $160 HKD (About $20 USD). Their dividend yield is projected to be about 0.11% for the first quarter of 2021.

The first number you notice here is the comparatively low yield percentage. But with BYD, it’s the steady flow of dividends that accumulates, not a one-time jackpot earning.

With a market cap of over $432 billion and a turnover of more than $180 billion, BYD is here to stay. So, although the yield percentage doesn’t seem all that high, it still looks like a good investment.

General Motors

When we talk of EV stocks that pay dividends, General Motors usually isn’t the first choice. That’s because it’s normally known as a fuel-based auto-maker. However, General Motors has ramped up its EV program by envisioning over 30 new EV models by 2025. Although GM was generally known as a conventional auto-maker, their new EV plan puts them in the center of the sustainable market.

They plan to design, develop, and engineer EVs for different price points and a variety of styles. So, it’s a comprehensive program that covers software, batteries, manufacturing, and vehicle integration.

As a legacy automaker, General Motors has consistently delivered 3-5% dividend yields throughout 2016 – 2020. The stock price has decreased to about $57 since the pandemic hit. That’s why their dividend payments were temporarily suspended for some time. But with the positive outlook of their EV sector, you can expect them to resume again soon.

Despite pandemic woes, GM still enjoys a respectable market cap of $82 billion. And with a total turnover of over $137 billion, they’re still a top contender. Throughout 2019-20, their operating income ranged around the $5 billion mark. So, their position in the market is also still stable.

With their wide range of EV designs coming up, GM is definitely one of the EV stocks to look out for. However, you’ll have to wait till they decide to start paying dividends again. And given the current state of Covid-19 trends, we’re not sure when this may take place.

BorgWarner Inc

BorgWarner is an international supplier of auto parts that has its headquarters in Michigan. With a presence in over two dozen countries, BorgWarner is listed as one of the top 25 suppliers of auto parts in the world. So, its foray into the EV industry comes as no surprise.

BorgWarner manufactures a wide variety of components that go into making electric vehicles. Their portfolio includes motors, transmission, electronics, power management, etc. So, they may not manufacture entire electronic cars, but they supply most of the components. The advantage with suppliers like BorgWarner is that their business will continue even when EV brands come and go.

Their dividend yield hovers around 1.40%, which appears low at first. But their market cap has grown to almost $12 billion over the years. BorgWarner’s stocks currently cost about $49.26 in the market. That figure makes it one of the most affordable EV stocks that pay dividends.

Their gross profit for 2020 came to around $1.9 billion, which is about 18% of their total net worth.

As a Fortune 500 company, BorgWarner continues to climb the ranks of EV stocks. While most tech companies flake out on rewarding their shareholders with dividends, BorgWarner continues to deliver the goods. Given their healthy track record and enviable position in the market, BorgWarner is another EV stock that may be worth buying in the future.

Volkswagen

Volkswagen, the maker of the iconic and classic Beetle, is also diving into the EV market. Their first electric SUV will hit Chinese markets by 2022. By 2023, they’ll roll out the ID 5 SUV-Coupe, and a much-awaited MPV will join in by 2024. So, it’s surely going to be a busy few years ahead for this German auto giant.

The good news here is that it’s an ideal opportunity for investing in their EV stocks. Their stock price recently closed in at $264, which is higher than some of the biggest names in the automobile industry. As their conventional cars already command this prestige in the market, their EV products may also follow suit.

By 2020 end, Volkwagen was already paying 1.82% as dividend yield to its holders. Their market cap stands at a whopping $124 billion. These numbers put Volkswagen among the best EV stocks that pay dividends.

Volkswagen’s total revenue crossed the $250 billion mark in recent years. The company revealed that the profits stood at about $14 billion after taxes. Also, till 2019, the company enjoyed the distinction of being the biggest car manufacturer when they overtook Toyota. If their EV products can replicate this success, their EV stocks will surely be worth the investment.

Nissan

The Japanese automaker, Nissan, is not a new name in the EV industry. Their first electric vehicle, Tama, was released all the way back in 1947. By 1997, they released the Prairie Joy EV, the first EV in the world to be powered by lithium-ion batteries. By 2019, their all-electric Nissan Leaf became the highest-selling electric car (later replaced by Tesla’s Model 3).

Nissan’s stock price recently closed at $10.03, making it an affordable option for those who want to invest in EV stocks. The brand enjoys a market cap of almost $20 billion.

The company’s consolidated net revenue for 2020 was about $20 billion. Out of this, the company recorded about $24 million in terms of operating profit. So, as far as turnover goes, Nissan is doing pretty well by today’s standards.

Nissan’s dividend yield under industry is about 3.28%, with a payout ratio of about 17.38%. Those are pretty impressive numbers given the competition it faces from other big EV players. Although their yield is not as high as it was back in 2017-18, it’s still one of the higher percentages if you consider the competitors.

With the 2021 Nissan Ariya already in the market, their EV prospects look brighter than ever. Investing in EV stocks can involve a lot of risks. But those risks are lowered with a reliable and time-tested brand like Nissan.

NextEra Energy Resources

We can’t talk of electric vehicles without considering power suppliers. NextEra Energy Resources is currently among the top generators of electric power in the region. It’s one of the world’s biggest providers of battery storage from renewable energy sources.

Apart from their other great numbers, NextEra truly stands out because of its impressive dividend yield of 3.31%. That amounts to about $2.48 on every yield. NextEra has provided its shareholders with a consistent increase in dividends for over six years now. In the last three years alone, NextEra’s dividend growth surged by over 51%.

NextEra’s market cap is currently at $150 billion, with an individual share worth about $76 in the last closing. The company records its net income as $1.67 billion in the last year. This figure is more than double its profits from the previous year when it netted about $421 million. So, there’s no doubt that NextEra can be among the best EV stocks that pay dividends.

The future of tech and automobiles will invariably make a move towards clean energy. The shift has already started. And companies like NextEra Energy Partners are at the helm of this transition.

Regardless of who manufactures the EVs, these energy solutions will always be required. Given these bright prospects, NextEra’s position in the market is almost cemented. So, investors who get a piece of this growing company may stand to reap great benefits later on.

Conclusion

Investing in EV stocks that pay dividends can be tricky. There’s always some risk involved, and no single stock is a guarantee for every season. However, with the right insights and market research, your investments can stand a much better chance.

Today, we’ve covered all the relevant information and upcoming stocks so that your decision is easier and more fruitful.

Best Pharmaceutical Stocks that Pay Dividends

 

If the past year (2020) has taught us anything, it’s that the world constantly needs reliable and efficient vaccines and medication. Whether it’s the Covid-19 pandemic or existing illnesses that plague human life, everyone wants access to the right treatment. So, pharma companies that develop and administer these treatments need to keep growing. As a practical investor, your attention is probably on pharmaceutical stocks that pay dividends.

Today, we’ll take you through valuable insights on some of the best pharmaceutical stocks that pay dividends. But before we really dive into the list, let’s understand some of the basics first.

What are Pharmaceutical stocks that pay dividends?

Pharmaceutical stocks that pay dividends are those companies who offer a regular payout to its shareholders from the profit it earns.

Having a dividend policy usually implies that the company is confident in the growth of its earnings. So, pharmaceuticals who have a proven track record in regular dividends are usually the ones that are doing well in the industry.

However, you should not finalize your investments merely on dividend yields alone. There are other considerations you have to make.

Fortunately for you, we’ve made all the comparisons and research on the best alternatives for 2021 and beyond. Today, we’re happy to share with you this list of the most prospective, dividend-paying pharma stocks. Let’s get into it!

Top Picks for Pharmaceuticals that pay dividends

GlaxoSmithKline (GSK)

GlaxoSmithKline, or GSK, is one of the leading companies that deal with healthcare. Their global businesses come under three categories – pharmaceuticals, vaccines, and consumer health products. By revenue alone, GSK is the largest company in the world that deals with vaccines. That itself is reason enough for many investors to grab stocks from GSK. But let’s look at the company and its figures in a bit more detail.

The last closing for GSK stocks was at $37.69. With over 2.5 billion outstanding shares and a market cap of $92.6 billion, GSK is definitely among the top players. But for those seeking dividends, GSK’s dividend yield of 5.3% takes the cake. It’s high enough to bring in sizeable profits without the risk of excessively high yields.

GSK recorded over $44 billion in sales during its report for the financial year 2020. Almost half of these sales were in pharmaceuticals. And the other half was split between vaccines and consumer healthcare. Out of this, their total operating profit measured over $8 billion. That explains how their dividend yields stay consistently high.

GSK is already in collaboration with major partners in developing a Covid-19 vaccine. Once that’s ready, the vaccine share in sales will surely go up. So, you can expect GSK to bag a bigger turnover for 2021 and more net profits.

Their adjuvant technology (enhanced immunity) promises to take the vaccine race to the next level. If successful, GSK’s position in the market is going to grow even more. So, it’s definitely a contender if you’re looking for reliable pharmaceutical companies that pay dividends.

Pfizer

If you’re even vaguely aware of the Covid-19 vaccine development, then Pfizer is not a new name for you. The company rose to prominence thanks to its Covid-19 vaccine that was among the first to roll out. And the vaccine’s application is not just in the US. Made with German biotech company, BioNTech, Pfizer’s vaccine is being administered to people from all over the world today.

However, it’s not the only vaccine or medication that’s netting profits for Pfizer. The company earned about $5.8 billion in revenue thanks to a range of vaccines and medications that aid in treating pneumonia, cancer, arthritis, and even prevent strokes. It’s probably from this kind of profit that Pfizer is able to maintain a dividend yield of almost 4%.

The last closing for Pfizer stocks was tagged at $38.83. Pfizer’s market cap of $222 billion is also set to grow more if the current trends continue. At 4.04%, their dividend yield amounts to about $1.56, which is higher than most other similar companies.

Pfizer believes that its Covid-19 vaccine has an efficacy rate of 95%. It was one of the first vaccines to be fast-tracked for approval in both the UK and the US. Today, it’s being administered all over the world (except China). Given these trends, we can surely consider it among the top pharmaceutical companies that pay dividends.

AstraZeneca

AstraZeneca is a Swedish-British Biotechnology company that deals with pharmaceuticals. In the past, the company was known for its products that deal with cardiovascular, oncology, infection, respiratory, and neuroscience. But today, it’s probably best known for its contribution in developing the Oxford-AstraZeneca Covid-19 vaccine.

The company has consistently shelled out dividend amounts of $2.80 for the past five years or so. So, you can expect past investors to be pretty satisfied with how the company is developing.

The dividend yield percentage looks like it’s decreasing. With a yield percentage of 4.50% in 2016, it was 2.70% for 2020. But this decrease in percentage is because of its increase in worth and revenue. AstraZeneca’s market cap has grown to a formidable $142.94 billion.

Since 2012, AstraZeneca has enjoyed over $25 billion in total revenue every year. So, it’s regularly featured as one of the top 15 pharma companies across the world. Their 2020 revenue alone was $26 billion. For 2021, their vaccine sales alone have netted them about $375 million in sales so far.

With the pandemic still continuing to lay hold on the world, vaccine suppliers like AstraZeneca will only grow from here. With further R&D, they stand likely to be the most prominent pharmaceutical stock that pays dividends.

Johnson and Johnson

Johnson and Johnson is widely regarded as the largest healthcare company in the world. They’re also believed to possess the widest range of health products for people of all ages. As a pharmaceutical brand, their position in the market is one of experience and great rapport.

J and J’s stocks closed at around $165.2. But this stock price is even more spectacular if you consider their market cap, which stands at $434 billion. Thanks to these numbers, J and J continue to be among the most sought-after pharmaceutical stocks that pay dividends.

In 2020, the company earned revenues of over $86 billion in sales. This revenue was distributed over health products, pharmaceutical segments, and medical devices. This number is an increase of about 0.6% from their 2019 figures. Their revenues will only grow in 2021, thanks to the Johnson and Johnson Covid-19 vaccine. It’s the first one-shot vaccine that was developed and is being widely used today.

The company has an order of 500 million doses today. At the standard $10 per vaccine, it stands to earn $5 billion in a single year from this vaccine alone. So, its position in the market is also stable and looks good for the future.

J and J also have the distinction of paying one of the highest dividend yields in the industry. Their yields stand at 2.48%, which amounts to about $4.24 on a yearly basis.

So, all things taken into account, J and J is surely one of the go-to stocks as far as pharmaceuticals go.

AbbVie

AbbVie is widely known among pharma investors as one of the best dividend-paying stocks. Although this biopharmaceutical company is still young, its parent company, Abbott Labs, has been around since the late 1800s.

Given this long history, AbbVie enjoys the reputation of delivering dividend increases for the last 49 consecutive years. Their current dividend yield stands at about 4.66%, which translates to about $5.2 annually. That’s easily one of the highest paying dividends among pharmaceutical stocks.

AbbVie’s stocks closed at $114.68, and it has consistently maintained this figure for the longest time now. Their market cap rests at $202 billion right now, which is an imposing figure by any standards.

AbbVie’s turnovers have been gradually increasing. For instance, their total revenue was about $28 million in 2017. The company experienced mild growths in 2018-19, taking the revenue figure to $33 million. However, this growth saw a sharp increase in 2020 when it rose to over $45 million.

AS far as market prospects go, AbbVie is here to stay. It may not have a Covid-19 vaccine just yet. But it sure has a series of medicines and treatments that will ensure its growth for years to come.

Sanofi

Sanofi is another pharmaceutical company that gives its investors reliable and regular payouts. Based in France, this multinational pharma company does R&D, development, marketing, and administering of a wide range of drugs and medication. Although its Covid-19 vaccine hasn’t taken off as well as the other names on this list, Sanofi’s other therapeutical products promise to keep it going.

Sanofi is a unique addition to this list because it’s not your conventionally impressive company.

It has a modest market cap of $129 billion, and stock prices currently sit at about $50.89. However, what makes it stand out is the alluring 3.75% yield in dividends. Ever since 2007, Sanofi’s dividend yields have seen a gradual but clear increase till today.

The French company has also seen steady growth in revenue since 2006. From a humble $31 billion revenue, it has now reached over $43 billion in 2020. This steady growth is one of the top reasons why it can shell out dividends over 3% regularly.

More than 89% of its stocks are publicly traded. That makes Sanafi an excellent choice for low-risk investors. Of course, there are no 100% guarantees when it comes to stocks of any kind. But Sanofi manages to come pretty close to being a reliable source of dividends.

The first quarter of 2021 saw Sanofi grow by an additional 2.4%. With a growing client base in both Europe and the US, Sanofi will see more revenue in the coming years. Given this healthy trajectory, you can expect more good things in the future if you already own stocks at Sanofi.

Amgen

Amgen is the last entry in our list of top pharmaceutical stocks that pay dividends. If the dividend yield percentage is anything to go by, Amgen is surely up there with the best. If you’ve heard of the arthritis medicine Enbrel, you have Amgen to thank for it.

With a yield of 2.67%, you’re assured of a steady income flow when you own a share in this company.

Amgen boasts of a wide range of medical applications in its products. These areas range from chemotherapy and cholesterol to neuroscience and bone health. This diversity of applications is a reason why the company manages to churn out great numbers every year.

The company’s revenues have grown to twice the size since 2004. Their sales numbers for 2020 alone stand at $25.4 billion. That’s also an increase from the $23 billion they sold in 2019. This growing trend is already taking their numbers higher in 2021. Amgen doesn’t have the market presence of giants like J and J or AstraZeneca. But their loyal payouts for shareholders make them a worthy addition to this list.

Amgen’s market cap is currently at $140 billion, and the stock last closed at $245. These numbers are good enough to help them maintain a growth trajectory for the near future. Amgen does not have a dedicated Covid-19 vaccine. But they’re very actively contributing immunology and antibody expertise in vaccine research. So, their continued participation in the industry is well on the way.

Conclusion

Pharmaceutical stocks that pay dividends are all the rage since the vaccine race started in 2020. However, each company brings something different to the table. As a wise investor, you need to make distinctions that allow you to choose what’s best for your financial plan.

This comprehensive list is intended to inform and assist you in making that choice. Although it’s not an exhaustive or guaranteed list, it will go a long way in helping you differentiate the best ones from the mediocre options.

Games Workshop – Investing in a hobby

When it comes to investing hard-earned cash into shares with a long-term viewpoint, I prefer to invest in a company I have some interest in. If it’s an interesting Tech company like Tesla or an everyday brand I’m familiar with like Coca Cola, I can take the dips without worrying too much as I believe in the long term.

For me the games workshop group plc (LON: GAW) is one of these companies but not just because I’m a massive nerd! I also think it has all the fundamentals to be a great company for many years to come.
Games workshop at its core creates miniature plastic figurines which customers use to create armies or small units to do battle within a tabletop setting. A key point to mention is, not only do they own the intellectual property behind the universe it’s set in they also makes there own products at its manufacturing base in Nottingham which they sell in there own stores around the world, leading to an impressive 75% gross margin, up 6 percentage points from last year.

The Fantasy world they’ve created throughout the years has to lead to a huge inflow of royalty income from licensing out its intellectual properties to game developers. the games themselves help reinforce the brand and attract new and old players alike back into the Games Workshop fanbase while providing what is essentially pure profit for the company.

keys to success in 2020

–Returning players with new attractive boxsets

Scores of returning players have been enticed back into the world of plastic mini-figure addiction. Their latest products have been heavily featuring figures that would have been around 20 years ago re-igniting passions from childhood.

–Covid has caused an increase in home-based hobbies

with half the world in some sort of lockdown or social distancing, outside of the home activities are at a minimal. Luckily for GW, a big part of there product can be done in solitude(making and painting their miniature figures)
-New update to there core product 40k with revisions and updates to existing armies
spiking demand and interest

–Engaging with the customer base

Kevin D. Rountree took the reins of GW back in 2016 he got to work engaging with the customer base and doing market research. This sounds obvious enough but previously GW had very little community engagement and 0 market research.

–Covid

A surprising fact about GW is that a relatively small portion of the customer base plays the game with the vast majority of customers being collectors/painter-hobbyists which is fine for those quarantined/in lockdown around the world.

–Publishing rights to produce figures

GW have the rights to produce figures for many notable franchises such as Judge Dredd, Doctor Who and Lord of the rings.

What the future of Games Workshop

– Expansion of there video game collection

The Warhammer branded Total War game has become one of the best selling franchises out of all the total war games. There are several games workshop licensed games currently in development which could lead to massive royalties as well as converting some of the video game fan base into hobbyists.
-Rapidly releasing much-needed updates to there core products
massive overhauls to the existing line up can re-ignite demand for certain figures, However, the rate at which they’ve been able to make the changes implies the infrastructure is there to be reactive and adaptive to the customer base.

–Social media growth

Social media for big business has been a focal point in many years, GW products lend themselves to social media content surprisingly well. GW own social media channels on twitch and youtube have been a great way to interact with the community providing teasers for upcoming projects as well as showcasing work from within the community. There has also been a steady rise in prominent YouTubers creating content related to GW, from Painting and crafting to actual live battles.

–Huge influx of new and returning players

The current schedule of releases has a focus on keeping current and returning players happys there’s also the new beginner-friendly starter sets.

 

-Games Workshop Dividend Yield

With 2020 over Games workshop group plc (ticker symbol LON: GAW) stock rose 54% over the year an impressive number, what’s even more impressive is if we travel back Five years ago, the share price stood near 540p. Today, the stock changes hands near 10,825p. 1823.15%

With a Dividend yield of 1.64%  (dividend cover is also 1.51)and a market cap of £3.7 Billion, it’s hard not to like the financials especially with its pre-tax profits growing £8.1 million a year (£89.4 million 2020) However its P/E ratio of 51.67 is relatively high mean its current price is not exactly value for money while the earnings per share are 218.70p.

 

I believe in the long term success of GW, Whilst I don’t think we’re going to continue seeing the percentage gains we have done over the last five years I think it’s still a relatively safe bet. Key factors Such as lack of any real competition, Having ownership over all levels of the business and finally the intellectual property which they’ve developed over the past 30+ years