Hi All,
I’m looking for the Trading 212 hive mind to suggest some picks in the Finance sector for me to add to a Finance pie.
So far I have Visa, Mastercard, JPMorgan and Square. Feel like I’m light on UK or Insurance companies.
Does anyone have a Finance company they really love that I should research?
Few ideas from the broad Financials sector in UK. In no real order of preference but I have all 5 in my ‘UK PIE’.
Sage (SGE) - Financial Payments Tech company (somewhat similar to Square, not as cutting edge but history of profitability and growth)
Financial Markets:
Hargreaves Lansdown (HL), IG (IGG), PLUS 500 (PLUS) - Benefit from market volatility as it increases trading volumes. All have posted strong H1 results.
Insurance (Good Value)
Legal & General (LGEN) - Life insurance and Pension Asset Manager. around 10th largest in world by asset under management. Pays a chunky c8% dividend and 9th best performing FTSE 100 stock over last 10 years with 355% return. (No guarantee of future performance)
I’ve avoided UK banks 1. High street names so you’ll know who they are. 2. They scare me!
I second Mirlo’s pick of LGEN
I too stay away from UK (and US banks). I do, however, like some of the Candian banks – I own some BNS. I think most of the big 5 Canadian banks look like solid picks, all great dividend payers.
Third on LGEN, one of my bigger single stock holding
I generally avoid the banks too however I couldn’t resist some LLOY when it was so cheap
(Please don’t buy anything on my recommendation, I am a fool)
On my screener, If I wanted to buy, my choices would be (in ranked order aswell)
UK (Combined Diversified and Banks);
SJG,
IPO,
GROW
HICL
INPP,
NUM,
3I
SNN
HRI
YCA
US (Diversified);
HRZN,
GPN
BX
APO
PAYC
CACC
TREE
US (Banks)
KNSL
TRUP
PLMR
GSHD
RY
PGR
CM
As a note, my screener uses a combination of Averages and RSI
Adyen’s worth a mention, think it’s been my best performing stock in the finance/payments sector over the years.
I like Blackrock, BLK in this sector. 2.44% dividend.
It is on the Bank of America, Merrill Lynch’s US 1 list of recommended shares. And of course PayPal, if you think that is part of this sector rather than technology.
My favorite financial company is Flow Traders, they’re a market maker in the ETP space. They are an atypical finance company because they tend to make more money when volatility in the markets increases. They had a fantastic first half of 2020 with their H120 EPS being €8.25 increasing from €0.71 in H119 which is an astronomical 1062% EPS increase. The dividend payed in 2020 has been €4.55 a share compared with last years €1.35. Although I personally don’t expect to see any march like volatility anytime soon the heightened base volatility seems to have a good effect on their future prospects (they’re investing more into several aspects of their business now as well).
Do your own research and make decisions according to your personal situation.
I also like: BNS, INGA, ASRNL, ADYEN, AFL, V, BLK
I’m going full Square.
Thanks for all the suggestions everyone.
Looked at LGEN and INPP so far. Think I will add LGEN to my Finance pie and INPP to my Property pie.
LGEN does not seem to have suffered as enormously as you might expect. Though the share price does not reflect this. The board seem positive based on the half year report and they are still profitable (only slightly different to last year).
I like investment companies such as INPP, I feel that the way they organise their portfolio to have guaranteed returns for X number of years suits me and big infrastructure spending is one of the common ways to “kick start” a struggling economy - which we might be seeing in the near future.
INPP is not fractonal yet though, so that will have to wait to be put into a pie.