5 FTSE-listed stocks new investors can buy

Highlights

  • Investing in stock markets outperforms saving cash in a bank account.
  • Investing in a range of companies is better than investing in individual companies in terms of investment risk.
  • Before investing, factors like profitability, earning per share, dividend payout etc. must be considered by beginners as per their risk appetites.

It is evident that investing in stock markets has outperformed saving cash in a bank account. A 2% inflation rate per year is currently targeted by the Bank of England, which means that the value of cash will decrease as the cost of living increases over a period of time.

To overcome the impact of inflation, a better option than a savings account is to invest in shares. As beginners, investing in individual companies instead of a range of companies might not be a good idea as it would carry a higher investment risk. However, if meticulous research is carried out and the stock market is studied regularly, a diversified and well-balanced portfolio of shares can be created which will potentially offer higher risk-adjusted returns to the investors.

As beginners looking to start your journey in the UK stock market, there are many factors you should consider before you choose to invest, such as the company’s profitability, dividend payout ratio, p/e ratio, earning per share, and so on. Stocks should be chosen as per your individual risk appetite and all such factors should be taken into account before investing.

ALSO READ: How Do Beginners Buy Stocks in the UK?

Let’s take a look at some of the UK stocks that beginners might consider before investing.

SEGRO PLC (LON: SGRO) 

Headquartered in London, Segro PLC is a UK-based real estate investment trust company.  With a current market capitalisation of £15,099.18 million, the company is listed on the London Stock Exchange since 1949 and is a constituent of the FTSE 100 index. It has given a return of 31.69% in 1 year with earnings per share of 1.24 and mean dividend per share of 0.24. The Segro PLC’s shares were trading at GBX 1,226.00, down by 2.58% from its previous close of GBX 1,258.00 on 24 September 2021.

Auto Trader Group PLC (LON: AUTO)

Headquartered in Manchester, Auto Trader Group PLC is a UK-based automotive classified advertising business. It has a current market capitalisation of £5,826.12 million, and is a constituent of the FTSE 100 index. It has given a return of 7.12% in 1 year with earnings per share of 0.13 and mean dividend per share of 0.08. The Auto Trader Group PLC’s shares were trading at GBX 592.00, down by 3.14% from its previous close of GBX 611.20 as on 24 September 2021.

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Experian plc (LON: EXPN)

Headquartered in Dublin, Experian plc is the world’s leading global information services company with a current market capitalisation of £30,261.77 million. It has given a return of 6.74% in 1 year with earnings per share of 0.88 and mean dividend per share of 0.38. The Experian plc’s shares were trading at GBX 3,153.00, down by 3.90% from previous close price of GBX 3,281.00 as on 24 September 2021.

Associated British Foods plc (LON: ABF)

Headquartered in London, Associated British Foods plc is a UK-based global food processing and retailing company. The ingredients division of the company is second-largest producer of both sugar and baker's yeast worldwide. With a current market capitalisation of £14,899.31 million, the company is listed on the London Stock Exchange since 1994 and is a constituent of the FTSE 100 index. It has given a return of 4.38% in 1 year with earnings per share of 0.58 and mean dividend per share of 0.25. The company’s shares were trading at GBX 1,945.00, up by 3.37% from its previous close price of GBX 1,882.00 as on 24 September 2021.

Entain PLC (LON: ENT)

Headquartered in Isle of Man, Entain PLC, previously known as GVC Holdings plc, has a current market capitalisation of £12,941.57 million. It has given a return of 119.61% in 1 year with a mean dividend per share of 0.30. The company’s shares were trading at GBX 2,206.00, down by 0.14%, from its previous close price of GBX 2,210.00 as on 24 September 2021.

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