What stocks to buy if you're over 50

Highlights 

• The overall allocation of stocks in the investor’s portfolio must change with age.
• Older investors are more prone to financial setbacks in the stock markets due to lack of recovery time.
• Factors such as profitability, stable cash flows, higher dividend yields, and low business risk etc. should be considered by older investors while investing in stocks.

Investors can start with stock investments at any age, but the percentage of stocks allocated in their overall portfolio as well as the types of stocks they own should change with age.

According to financial advisors, for young investors, it is less troublesome to tackle financial setbacks, while the older investors have much more difficulty in dealing with the same mainly due to lack of recovery time. Thus, a more conservative approach is considered better for older investors, which is more focused on stocks with higher profitability, stable cash flows, higher dividend yields, and low business risk.

There are a lot of other factors which should be considered by older investors while assessing the strength of a company or its stocks. Thus, before investing, it is important for the investor to conduct meticulous research to understand the financial status, competitive standing, growth path and management efficiency etc. of the company. One can smartly grow his portfolio by analysing and adding high yield dividend stocks. But one has to be careful with the reliability of the stock and avoid buying stocks while only considering higher dividend yield. These factors should be all together taken into account to maximise the risk-adjusted returns.

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Let’s take a look at some stocks you can buy if you’re 50.

Evraz plc (LON: EVR)

London-headquartered Evraz plc has a focus on steel making and mining. Its current market capitalisation stands at £8,413.72 million. It has given a return of 73.69% in 1 year and its earnings per share is 0.58. Its average dividend per share stands at GBP 0.95 and its 5-year average dividend yield is 10.4%. The previous close price of Evraz plc’s shares was GBX 576.80 as on 29 September 2021.

CMC Markets Plc (LON: CMCX)

London-headquartered CMC Markets Plc is a UK-based financial services company that provides services like online trading in shares and spread betting in several countries. Its current market capitalisation stands at £805.77 million and its earnings per share is 0.62. Its average dividend per share stands at GBP 0.11 and its 5-year average dividend yield is 4.9%. The previous close price of CMC Markets Plc shares was GBX 276.50 as on 29 September 2021.

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Ferrexpo PLC (LON: FXPO)

Listed on LSE, it is the the third largest exporter of iron ore pellets in the world. Its current market capitalisation stands at £1,871.82 million. It has given a return of 87.49% in 1 year and its earnings per share is 0.69. Its average dividend per share stands at GBP 0.71 and its 5-year average dividend yield is 3.5%. The previous close price of Ferrexpo PLC’s shares was GBX 318.00 as on 29 September 2021.

Imperial Brands PLC (LON: IMB)

Bristol-headquartered Imperial Brands PLC is a UK-based tobacco companyIts current market capitalisation stands at £14,782.89 million. It has given a return of 15.04% in 1 year and its earnings per share is 1.58. Its average dividend per share stands at GBP 0.71 and its 5-year average dividend yield is 3.5%. The previous close price of Imperial Brands PLC’s shares was GBX 1,562.00 as on 29 September 2021.

British American Tobacco PLC (LON: BATS)

London-headquartered British American Tobacco PLC is a UK-based world leading cigarette manufacturing company. Its current market capitalisation stands at £62,792.99 million and its earnings per share is 2.80. Its average dividend per share stands at GBP 2.18 and its 5-year average dividend yield is 5.7%. The previous close price of British American Tobacco PLC’s shares was GBX 2,736.50 as on 29 September 2021.

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