August has been a good month for FTSE 100 insurer Aviva (LSE: AV). The Aviva share price hit a level last seen in 2008, when the financial crisis was taking hold. It has been a long road! Still, incredibly, the Aviva share price is barely half what it was in the late 1990s. Even as a long-term investor, I despair at the thought of putting money into a share and still nursing a large paper loss over a quarter of a century later. Yes, Aviva’s dividend yield of 5.7% is attractive, but share price movements matter too. Still, as the…
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Image source: Getty Images A Self-Invested Personal Pension (SIPP) offers the sort of long-term investment platform I think can be well-suited to long-term investing. Many investors like the idea of tucking some high-yield dividend shares into their SIPP and letting the income compound over the years or decades. Here are three high-yield UK shares to consider this September. Henderson Far East Income Henderson Far East Income (HFEL: LSE) aims to do what it says on the tin. In other words, the investment trust aims to use a portfolio of Asia-exposed shares to support it paying dividends. It aims to grow…
Image source: The Motley Fool In 2001, Warren Buffett devised an indicator which he described as “probably the best single measure of where valuations stand at any given moment”. He also warned that if it approaches 200%, an investor is “playing with fire”. In the US, it’s currently (29 August) at 214%. Expressed as a percentage, the Buffett indicator compares the gross domestic product of a particular economy with the value of that country’s stock market. It’s really a market-wide price-to-earnings ratio. And driven by the artificial intelligence (AI) boom, it’s never been higher. So what? Its present elevated level…
Image source: Getty Images When most investors think of the FTSE 100, it’s often the big dividend-paying stocks that spring to mind — big banks, oil majors, or tech giants. But reliable growth stocks are a different breed. Instead of dishing out large chunks of profit to shareholders, these companies plough earnings back into the business, compounding their value over time. The result? More consistent capital gains. Reliable growth stocks often show a return on equity (ROE) comfortably above 15%, alongside higher-than-average price-to-earnings (P/E) ratios that reflect investor confidence in their long-term potential. Two of the most reliable growth stocks…
Image source: Getty Images One of the advantages of having a Self-Invested Personal Pension (SIPP) is that you are in control. The downside is that the buck stops with you. And there’s plenty at stake. Get things right and you could have a comfortable retirement. Otherwise, you might have to work for longer than you had hoped. One possible strategy is to start with £20,000 and invest in a few shares. How many? Well, that depends. There are numerous theories as to the ‘correct’ number of stocks to own. The consensus appears to be 15-30. Most people agree that it’s…
Image source: Getty Images Gamma Communications (LSE:GAMA) is a relative newcomer to the FTSE 250. The company only joined the main UK stock market in May and was added to the index at the end of June. The stock’s down 33% over the last five years, but during that time sales have grown 76% and earnings per share have doubled. And that makes it stand out as a potential opportunity. What does Gamma do? Gamma Communications is a business-to-business communications provider. It provides integrated phone, video, and messaging services for businesses via the cloud. Source: Gamma Communications FY 2024 Results…
Image source: Getty Images By 2050, most of the global middle class is expected to be in Asia. Per-person income is forecast to reach Europe’s levels today, making this region the key global economic growth driver. The good news is that there are plenty of FTSE stocks offering ways to invest in this growth. Here, I’ll highlight two that I think deserve closer attention. FTSE 100 Let’s start with the largest by far, which is HSBC (LSE:HSBA). In recent years, the FTSE 100 banking giant has been shedding western assets to focus on Asian markets like India and mainland China.…
The BP (LSE:BP.) share price has recovered strongly since President Trump upset the world’s stock markets in April with his announcements on tariffs. However, although up a third since its 12-month low, the stock’s now changing hands for the same price as it was in August 2024. And this topsy-turvy performance is a reminder of one of the major risks associated with oil and gas shares. Because of the unpredictable nature of energy prices, nobody can tell with any certainty what’s going to happen next. Of course, this is true of any share. After all, it’s impossible to see into…
Image source: Getty Images Exchange-traded funds (ETFs) that track the FTSE 100 and S&P 500 remain firm favourites with UK investors. It’s easy to see why, as both indexes have been performing nicely over the past couple of years. However, for growth investors wanting something a bit more niche, I think these three ETFs are worth a gander. Digitilisation Up first is the iShares Digitalisation ETF (LSE:DGTL). This holds 206 stocks that are generating significant revenues but still have growth potential due to the “increasing prevalence and application of digital services”. What I like here is that the ETF isn’t…
Image source: Getty Images Sometimes market sentiment towards a stock just seems wrong, and I think that when I look at the Diageo (LSE: DGE) share price. I reckon this is a company with a solid defensive moat and it deserves a premium rating. But with a forward price-to-earnings (P/E) ratio of 16.5, it hasn’t really got one. And what edge it might have would be lost if forecasts are right and it drops to 14.3 by 2027. What’s so good about it? Having a good time? Think celebrate, think Johnny Walker, think Smirnoff, think Guinness… think Diageo. Feeling down?…