Image source: Getty Images In general, UK shares have underperformed their US counterparts over the last 10 years. But there’s a big reason to be bullish on FTSE 100 stocks going forward. According to recent reports, UK firms are favouring buybacks over dividends for returning cash to investors. And this could be very positive for share prices. Share buybacks In general, businesses face choices about what to do with the cash they generate. One option is to use some or all of it to buy their own shares and then cancel them. The main benefit is that it reduces the…
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Image source: Getty Images During the last five years, the total return from the FTSE 100 – including price appreciation and dividends – has been 83.68%. That’s the equivalent of 12.93% a year, and far better than anyone could hope to achieve in a savings account. And while part of the return is the result of a post-pandemic bounceback, there’s a lot more to it than this. What the FTSE 100 does well In one sense, there’s no magic to the FTSE 100 performance. The largest UK businesses that meet the qualifying requirements automatically become part of the index. That…
MSNModi’s govt’s masterstroke to shock China! prepares Rs 60000000000 plan for rare earth magnet, no more dependency on…China has recently halted the supply of rare earth magnets to India, to avoid this dependency, India has decided to become independent in the sector..20 hours ago Source link
Image source: Getty Images Historically speaking, September’s the weakest month for the stock market. And that could present some nice opportunities for investors who are ready to take advantage. I’m not saying share prices are going to crash in the next six weeks. But I do think having an idea of which stocks might become attractive is probably a good idea. Warren Buffett For a while, I thought a stock market crash shouldn’t change what I was buying. If everything falls 20%, the shares that are cheap relative to others will still be the same. That however, misses something important.…
For an average investor, high-yield bond mutual funds are the best to invest in bonds rated below investment grade, popularly known as junk bonds. This is because these funds hold a wide range of securities that reduce portfolio risk. In addition, these funds provide better returns than investments with higher ratings, including government and corporate bonds. Further, since the yield from such bonds is higher than investment-grade securities, they are less susceptible to interest rate fluctuations. Below, we share with you three top-ranked high-yield bond mutual funds, namely PIMCO High Yield Spectrum PHSAX, Franklin High Income Fund FHAIX and Fidelity Series Floating Rate…
Image source: Getty Images The Self-Invested Personal Pension (SIPP) is one of the best retirement preparation tools available to British investors. While taxes do eventually re-enter the picture, the elimination of dividend and capital gains tax, along with income tax relief, drastically accelerates the wealth-building process. So much so that even when starting later at the age of 40, it enables investors to accumulate a substantial nest egg. Here’s how. Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information…
There’s four more symbols of the inhumanity erupting in New York’s federal courthouses.The New York Daily News made headlines last month after a reporter discovered an abandoned bike in Lower Manhattan that belongs to a worker who was last heard asking for directions to the immigration court inside the Jacob K. Javits Federal Building.He never came out. The bike remains chained to the same pole weeks later, still adorned with a small teddy bear labeled “Love” and now featuring a taped-on message, “MY OWNER WAS KIDNAPPED BY ICE!”He’s obviously not the only victim of President Trump’s crackdown on immigrants, nor…
Image source: Getty Images Having 20 grand in the bank is a nice lump sum of capital to get started generating a chunky second income using the stock market. When leveraging a FTSE 100 index fund, it’s enough to instantly start earning £660 passive income overnight. And for investors willing to take on more risk, there are some dividend-paying stocks offering more than 8% right now. Take Legal & General Group (LSE:LGEN) as an example to consider. The insurance stock currently has an 8.4% payout, enough to start earning a £1,680 second income straight away. So what’s the catch? Investigating…
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Image source: Getty Images A lump sum of £15,000 might not seem life-changing. But with a smart investing strategy and enough time, it could form the foundation of a sizeable passive income portfolio. Historically, the stock market has delivered average annual returns of around 8%–10%. At a 10% growth rate, a £15,000 investment left untouched could compound into roughly £300,000 in 32 years. From there, a 5% yield could generate £15,000 in annual passive income — essentially turning savings into a salary. That’s one way to do it. But there’s a way to get there faster. By adding just £250…