News & Insights

Dividend Aristocrats

  • Anglo American: 14.08% dividend return
  • BP: 8.69% dividend return
  • Royal Dutch Shell:  7.59% dividend return
  • WM Morrison: 7.51% dividend return
  • HSBC: 6.11% dividend return

While these returns look fantastic in today’s current climate of low interest rates and investment returns, caution is well advised. For example, while from the above BP looks to have given a great dividend return of 8.69%, the selling price per share is around £3.20 at the time of writing.  10 months ago, however, the selling price was £4.80 so the value is down over 33%.  It is true that the markets in general are down over the last 12 months but this shows that caution still must always be taken even when investing in so-called blue chip companies.

The most important thing to do when looking at buying shares is spreading risk or ‘diversification’.  If a large enough spread is created this can improve your chances of getting a good performance and decent income without taking the hit of one or two underperforming companies.

Shares should definitely be looked at as long term investments (5 years plus) but buy selecting a portfolio that has the companies that consistently produce good dividend returns, an income can be enjoyed while the capital is invested for the long term.

Many of my clients do not want the pressure or hassle of selecting their own shares so a professional fund manager can be selected to do this for them – this usually incurs a cost of around 1-2% per annum but what can be achieved is expertise knowledge and experience alongside the benefit of pooling investments with thousands of others, creating a larger a pool of money to allow broader diversification and lower dealing costs.

In today’s financial climate it is essential you do everything you can to make sure your money is safe and secure so what you want to transpire in the future has the best chance of happening.


Other News

Sweden Voted Top Destination for Women Expats

Sweden flag and victory signExpats are in many ways the most forward-thinking of global citizens; living abroad shows a desire to embrace something more complex than a simple national identity and way of life. Yet, at the same time, it is also the most ancient act; humans began as nomads and then migrants, so being on the move is part of our species’ natural curiosity.

But there is more to being an expat than simply picking a destination on the map and moving there. By looking at all the available options and factoring in the many variables, people have an opportunity to make the most of their prospects and to enjoy the richest and most varied life possible.

Fortunately, this is what most expats do: the most recent HSBC expat explorer survey found that a move abroad adds around USD21,000 to the average salary, with some countries offering even more. For example, Switzerland, which has long been a destination of choice for the globally minded expat, boosts income by an average of USD61,000 a year.

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Spotlight On … Mark Hollingsworth – IFA

Mark HollingsworthHow / why did you get into your line of work in the financial services sector?

On leaving school aged 17, joining a bank or insurance company was a popular career choice. I spent 13 years with Standard Life, which also gave me the foundation to study and obtain advanced level financial services qualifications. I always wanted to further my career in the industry and to give direct client advice – this took me abroad in 1999 and I have never looked back since.

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