Category Archives : Practical Advice on Investing

Articles on the practical aspects of investing. Articles show where to put your money. If you want to know how to invest, look at the Investing Theory sub menu

Imperial Brands (IMB) Stock Purchase – The Value of Sin Stocks 2

The value of owning sin stocks cannot be denied – research has shown that investing in sin stocks generate higher returns. From 1900 through 2012, tobacco stocks delivered annual returns of 19.7%. From the end of WWII through 2012, alcohol stocks delivered returns of 11.5%. Since the creation of The Standard Oil Trust in 1882, the average integrated oil company has delivered 12% annual returns. If you remove tobacco, alcohol, and energy from the U.S. stock market from 1926 through 2012, those 10% annual average returns that you hear about become 7% annual returns instead. Over a half-century long investing life, the difference between 7% and 10% is the difference […]

Legal and general (LGEN) share purchase – Insurance, Asset Management and Alternative Finance

Along with house builders and traditional banks, Insurance companies have felt the full force of the ‘Leave’ vote The biggest firms in the sector, like Aviva, Prudential and Legal & General, have all seen there stock prices tumble in recent weeks. To most, a share price decline is a terrible event, but to me, share price declines are opportunities to buy more shares in the companies I like at discounted prices. Since starting my dividend portfolio over a year ago, I have wanted to diversify my holdings in order to get exposure to some financial services related stocks. Banks to me have always been out of the question as they […]

Should you buy Banking shares after the Brexit Crash? Barclays, HSBC, Lloyds, Standard Chartered 1

The historic Brexit vote that took place last Thursday sent the market crashing. Although many stocks have partially recovered, those in the Banking sector have been hardly hit and have stayed down. The likes of Barclays (BARC), Lloyds Banking Group (LLOY) and Royal Bank of Scotland (RBS) are downing excess of 15%, whilst HSBC (HSBA) and Standard Chartered (STAN) have faired slight better. So this begs the question, are banking stocks cheap and should you buy them? Whilst on paper banking stocks around Europe look cheap, I would not touch them with a proverbial barge pole. As an investor, I aim to invest in businesses that are simple to understand […]

Dividend Withholding Tax Rates for Different Countries Around the World – Foreign Stocks 4

Over the years, various studies have shown that investors tend to favour home stocks as opposed to foreign stocks. One of the reasons is that people are more familiar with companies that are based in their own country than abroad. As a UK investor, I would rather hold Uniliver in my portfolio over Clorox, or Royal Dutch Shell over Exxon Mobil. Whilst there is undoubtedly an element of home bias in favour of local stocks, I believe that one of the biggest deterrents in ownership of foreign stocks is taxes – in specific withholding taxes on dividends. What are withholding taxes and how do they work? A dividend withholding tax […]

Safe and Stable Dividend Paying Stocks – Dividend Champion and Contenders List

With interest rates at historic lows and continuing to look to be that way for the foreseeable future, investors and retirees alike are looking at dividend paying stocks to supplement their income. Dividend paying stocks can offer relatively ‘stable and safe’ yields of 4% provided you do your research and buy in to the right companies. Unlike incomes from bonds, companies can cut their dividends in the face of trouble just like Tesco and BHP Billiton recently did. Although income from dividend paying stocks is riskier, it need not be. Buying into a diversified collection of blue chip can provide you with a decent income whilst partially insulating you from […]

Tritax Big Box Reit (BBOX) share purchase – making money by buying IPO shares at a discount

Tritax Big Box (BBOX), a Real Estate Investment Trust (REIT) which specialises in big warehouses recently had an IPO for issue of shares which I took part in. Normally, I shun these kinds of IPOs /new issuances but in the case of Tritax, it was just screaming buy! One of the reasons is because BBOX is a property company with great prospects which I have followed for a while and as I wanted to get exposure to property in my investment portfolio, this company seemed like the ideal way to go. But an even bigger reason for buying is that Tritax issued shares at 124p (£1.24) at its IPO whilst […]

How To Get Annual Reports Delivered To Your Door For Free

Not many people read annual reports anymore or so the claim goes by Terry Smith. But an Annual Report is the best place to conduct your research and analysis of a company. An annual report has the some great features such as giving you the description of a business, strategy and sales information, management discussion and analysis and other key pieces of information you need to know before deciding to invest in that company. Many people would like printed or hard copies of annual reports but don’t know where to find them or how to order them. Well, you can get an annual report sent to you in the post for free by […]

Crowdcube – A review of the equity crowdfunding website 2

Investing in fledging private start-up companies used to only be a rich mans game. You had to be a wealthy or accredited investor to get the chance to invest in companies such as Google, Facebook and Netflix in its early days and grow your wealth exponentially as a result of your investment at the early stages of the business. Thankfully, with the advent of technology and new business models such as crowdfunding, small individual investors like you and I now have a chance to invest in small start up companies we truly believe. Crowdcube is one of the platforms that gives us a chance to judge companies and see if […]

How To Get Free Alcohol For Life With Diageo (DGE)! 6

If you stumbled upon a magic lamp and the genie inside gave you three wishes, I bet one of those would be free alcohol for life. Alcohol takes up a good chunk of many peoples disposable incomes and this leaves them dreaming about having their own brewery and getting free alcohol for life. I didn’t used to think that ‘free alcohol’ was possible until a friend of mine showed me exactly how he lets his favourite drinks maker get the rounds in. In this article, I will show you how my friend got his favourite drinks company, Diageo, to give him money to buy his favourite bottles of alcohol. Many […]

How to buy stocks and shares in the UK – Review of the best investing platforms for new and experienced investors. 19

This post will help to give an idea of what I think are the best online investing platforms for the situations listed below: New Investor Long terms buy and hold investor in an ISA Investor wanting to make use of Capital Gains Allowance (non-Isa Account) Day trader.   Best Platform for new investors: Hargreaves Lansdown. One of the biggest dilemmas new investors who want to buy stocks and shares online face is they don’t know where to start looking. With so many stock brokers or online platforms around these days, it may be difficult for them to chose which one to use. When you are a new investor who has […]