Concentration risk is one of the risks that investors in the British equity market must be aware of. Though the UK is one of the largest economies in Europe and in the developed world, its equity market is highly concentrated with select sectors and companies dominating the market. So British investors are wise to diversify …
Continue reading ‘Three Concentration Risks In The British Stock Market’ »
The UK general election is scheduled to take place tomorrow (8 June 2017). After the surprising Brexit vote last year this will be the major political event in the country. British stocks have performed well in the past under conservative leadership than labour according to an article I came across recently. The following chart shows the …
Continue reading ‘The UK Stock Market Has Performed Well Under Conservatives Than Labour’ »
The British equity market is an excellent hunting ground for yield-seeking investors. British firms have a strong dividend culture and have high dividend yields on their equities. For American investors, an added advantage is that there is no withholding taxes on dividends (excluding REITs). Despite the pros, the British stock market has a structural issue …
Continue reading ‘These 10 Companies Pay Half of all UK Dividends’ »
The British equity market has recovered strongly since the Brexit decision early last year. One of the main reason for the resilence of British stocks is that most of the revenues of the FTSE 100 firms come from abroad. As a result, the FTSE 100 firms are dependent on the economies of foreign countries than …
Continue reading ‘FTSE 100 Exposure by Geographic Revenue vs. Domicile’ »
The Dogs of the Dow is an investment strategy that involves picking annually the ten highest dividend-paying Dow Jones Industrial Average stocks. Applying this theory to the British equity market, the Dogs of the FTSE 100 strategy selects the 10 FTSE 100 stocks with the highest dividend yields. This strategy has worked out well in the past in …
Continue reading ‘Ten FTSE 100 Stocks with the Highest Dividend Yield’ »
The FTSE 100 is up just over 12% year-to-date. The index has outperformed the other major indices of developed Europe such as the CAC-40, DAX and IBEX. This is because the FTSE 100 is heavily concentrated with mining and oil and gas firms and the companies in the index are more dependent on foreign markets …
Continue reading ‘Comparing The Valuation Of British Stock Market Sectors’ »