Five ISA investment stocks to watch

16 March 2018

2018 is off to a choppy start and we believe there are a few stocks to watch.. Defensive areas of the market have been hit hard by rising interest rates as for so long their attractive dividend yields have been used as a proxy for bonds while rates have been so low. Money has flowed out of these stocks over the past few months and the move lower now appears overdone.

We are rapidly approaching the end of the ISA season and with limits up to £20,000 for the year ahead, therefore a great time to take opportunity in the market.

There’s a nostalgic feel to our ISA picks this year, as we have opted for corporate giants that we believe offer a good mix of growth potential alongside impressive levels of income.

We’re looking closely at BP, Diageo, GlaxoSmithKline, Unilever and Vodafone for the 2018 ISA allocation and here is a glimpse why.

The chart below is the collective performance of these 5 giants over the past 5 years, versus the return of the FTSE100 in the same period (orange line)

Since 2016, this basket of stocks has significantly outperformed the UK benchmark, at one point hitting a 5-year collective return of 150%. Over the past 8 weeks this has sharply unravelled back to what we believe is a sensible level to begin investing once again.

Please note: This article is not advice or a recommendation to buy, sell or hold any investment.

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The Shard Capital Stockbroking team are highly experienced in portfolio management and diversification and can tailor an investment solution for an individual looking to start or grow their ISA.

If you would like more information on a stocks and shares ISA or an alternate investment solution, please contact the Shard Capital Stockbroking team.



Important Investment Information  

The views below are published solely for information purposes and are not to be construed as a solicitation or an offer to buy or sell any securities, or related financial instruments. It does not constitute advice or a personal recommendation as defined by the Financial Conduct Authority (“FCA”) or take into account the particular investment objectives, financial situations or needs of individual investors. The views above are based on public information and sources considered reliable.

These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. All investments should be held for the long term as their value can fall as well as rise, therefore you could get back less than you invest.

If you are unsure about the appropriateness of an investment for your circumstances please seek financial advice. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment. This publication has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication.

Figures correct as at 13th March 2018 unless otherwise stated. This publication is issued by Shard Capital Partners LLP, 20 Fenchurch Street, London, EC3M 3BY United Kingdom who are authorised and regulated by the Financial Conduct Authority.