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breaking news Best UK Stocks Right Now • Daily Update • Benzinga

Depending on your investment goals, diversification into foreign equities may make sense for your portfolio. UK equities are a strong choice among foreign equities when it comes to dividends and capital appreciation. Major UK stocks can also be purchased using American Depository Receipts (ADRs) which are traded on major US stock exchanges. In this article, we take a look at some of the best UK stocks to consider for your portfolio.

Quick look at the best UK stocks:

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Overview: Top UK Stocks

GlaxoSmithKline was previously called GlaxoWelcome before its merger with the American pharmaceutical company SmithKline Beecham in 2000. This combination made GlaxoSmithKline the 6th largest pharmaceutical company in the world.

Unilever is the product of the merger in 1929 of the British soap maker Lever Brothers and the Dutch company Margarine Unie. The transnational corporation is one of the largest consumer product manufacturers in the world and 2.5 billion people use its products worldwide.

Micro Focus International was founded in 1976 and is a global information technology (IT) company with over 40,000 customers. The company specializes in analytics and big data, IT operations management, collaboration software solutions, and mainframe and security applications.

Aviva plc is a leading international insurer with 33.4 million customers worldwide. It was founded in 2000 after the merger of 2 major British insurers, Norwich Union and CGU plc, and is the 14th largest insurance company in the world.

British American Tobacco is the second largest cigarette manufacturer in the world, born of a 1902 joint venture between Imperial Tobacco Company and American Tobacco Company. The company owns or has interests in tobacco companies in approximately 180 countries, with 11 million outlets and 150 million consumers worldwide.

Best Online Brokers for UK Stocks

Since the UK stocks mentioned above can be purchased using ADRs on US stock exchanges, you can buy them through any broker with access to US markets. You can also buy UK stocks directly on the London Stock Exchange with an Interactive Brokers or Charles Schwab International brokerage account. Other online brokers you can buy UK stocks from include TD Ameritrade, E*TRADE and Robinhood.

Features To Look For In UK Stocks

  • Solid balance sheet: The company’s balance sheet should show rising earnings per share, as little debt as possible in its gearing ratio and a positive outlook for future earnings. Other important balance sheet figures would be the company’s assets and cash position.
  • Dividend yield: A company’s dividend yield is calculated by dividing its dividend amount by its stock price. A high dividend yield makes a stock more attractive to investors looking to earn income from their investments.
  • Defensive qualities: With the current level of uncertainty in the markets resulting in geopolitical issues, investing in economic sectors that hold their value in these challenging times and likely future economic repercussions makes the most sense.

UK stocks to watch this year

After UK stocks fell sharply in late March due to the pandemic, many UK stocks have since rebounded correctively to recoup a significant percentage of their losses. All of the UK stocks mentioned below are currently trading below their pre-pandemic prices in mid-January. None of the stocks reviewed currently qualify for our list of stocks under $20.

1. GlaxoSmithKline plc

GSK stock has rallied significantly from its March 23 low of $31.85, currently trading at $42.15, which is only about 10% of the $47 level at which the stock was trading in mid-January, before the World Health Organization (WHO) declared COVID- On March 19, a pandemic broke out. GSK stock has a dividend yield of 5.85% and quarterly earnings per share of $0.31. Due to the stock’s dual listing in London and New York, you do not need to buy an ADR to buy this stock.


UL stock traded at the $60-$64 level from May 2019 to early February 2020. The stock then hit its yearly low of $44.62 on March 23 after news broke of the March 11 pandemic. March by the WHO. The stock has since rallied to over $50 per share in early May 2020 and has a dividend yield of 3.5%.

Despite likely shifts in consumer preferences post-pandemic, Unilever appears well positioned as a manufacturer of a variety of soap and personal hygiene products, which could offset any losses in its sales related to the pandemic. restaurant food.

3.Micro Focus International

MFGP stock hit its yearly low of $3.60 on March 30, 2020, but then rebounded to close at $5.70 in early May, simply disqualifying it from our list of stocks under $5. While the stock offered a substantial dividend before the COVID-19 crisis, the dividend has been suspended until the effects of the pandemic are more clearly determined. Interestingly, TMT Finance reported that Micro Focus recently held private talks with potential buyers.

4. Aviva plc

Aviva plc is the 14th largest insurer in the world and paid out £33.2 billion in claims and benefits in 2019. AVVIY shares were trading at $4.90 on March 23, 2020, which was much worse than the $11 level the stock was trading at in mid-December 2019. AVVIY shares have since recovered somewhat and are currently trading at $5.89 with a dividend yield of 7.22%, which qualifies Aviva stock for our Under $10 and Under $20 stock lists.

5. British American Tobacco

Due to its core business being dependent on tobacco consumption, BTI stock to some extent follows the general market but also tends to show resilience over the long term due to the persistence of tobacco use. BTI stock hit a low of $27.64 on March 23 and then rebounded to its current level of $36.98 per share.

Prior to the WHO pandemic announcement, BTI shares were trading between $42 and $44 per share. The stock is currently trading with a PE ratio of 11.54 on 12-month earnings of $3.22 as of December 31, 2019.

Today’s biggest movers in the UK

Since companies listed in the UK usually have their base in the UK, their shares will already have half a day of trading when the US markets open. All of the aforementioned actions could therefore be great pre-market drivers, especially during a major announcement such as earnings, a potential takeover or re-opening of regions after pandemic shutdowns.

UK stocks: is it a good time to buy?

Depending on your financial goals and portfolio, it would make more sense to watch the UK market to determine the optimal time to buy after the pandemic-related sell-off that began in March.

Income-seeking investors would probably do well to buy UK stocks that offer above-average dividend yields. Those looking for capital appreciation should look for companies that look likely to stay out of insolvency and whose shares look poised to rise significantly under more favorable market conditions once economic regions reopen from the wave of recessions. pandemic-related closures.


Does it make sense to diversify into foreign stocks?


Investing in foreign stocks can be a great way to diversify your portfolio. You may need a foreign broker to carry out the transactions.


Do UK stocks have a higher dividend yield than US stocks?


Generally, UK stocks have higher dividend yields than US stocks.


What UK stocks should I invest in?


You can find Benzinga’s UK stocks in the list above.


Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
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