Our approach to large-cap investing is to look for those shares that have the best combination of high earnings growth, high dividend yields and low PE ratios. This system is designed to find above average companies that are trading at below average prices. The approach is based on the findings of various studies which have shown that companies that can consistently grown earnings and that have high yields have a better chance of beating the market in the longer-term.
It’s hard to argue with Rolls Royce if you want a company which can produce steady income growth over the long-term with limited risks, but how does it stack up as a value investment at almost 830p a share? With sales and profits measured in billions, as well as staff measured in tens of...
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If you’re not worried about the ethical implications of investing in tobacco companies, then being a shareholder of British American Tobacco over the last decade would have been a very profitable experience. The shares have risen from around 700p in 2002 to more than 3,000p today. Along the way it’s paid out another 700p...
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Glaxo is a popular stock. It’s often among the most traded stocks in any given day and it’s a favourite of Neil Woodford, the current Master of the Fund Management Universe. Not only is it one of Woodford’s top holdings, but according to the Citywire web site, it’s a top five holding for four...
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It’s been a while since I last mentioned the model portfolio that I run as part of the investment newsletter I launched last year. The constituents of that portfolio match exactly those in my personal pension fund, so this is much more than simply a model that I’m ‘messing about’ with. The idea of...
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We’re all feeling the pain of high petrol and diesel costs at the moment with prices at the pump hitting more than 150p per litre in some places. I know that some investors like to hedge their bets and own shares in companies that do well at the expense of the rest of us,...
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The stock market can be a funny old place. One day (last week actually) you might look at the price of Prudential, the FTSE 100 listed, multi-billion pound global insurance and financial services giant, and see that it’s valued at £17.8 billion. Then a few days later, it announces some positive results for the...
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HSBC has taken a bit of a beating over the past few years just like all the other banks, but I think this one has done a solid job of steering through the crisis. Earnings and dividends may be down substantially from the peak years of 2007/8, but things are not remotely as bad...
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I thought I’d have a go at building up a database of info on companies, so I’ll be starting with the FTSE 100 from A to Z and we’ll see how it goes. The first company is AMEC, an engineering, project management and related services company that works with companies in the oil and...
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Smith & Nephew (a FTSE 100 medical equipment maker) recently released its annual results and managed to please Mr Market. It did this by increasing revenues, margins and adjusted earnings, which was better than many had expected. Suitably impressed, Mr Market responded with a four percent plus rise in the share price. AstraZeneca on...
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Tesco is the largest supermarket in the UK with over 2,000 stores here and around half a million staff worldwide. It’s a monster. It’s the dominant player in a recession-proof industry and has Warren Buffett on board as a major investor. So if the Christmas results for a single year were a bit disappointing,...
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