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My 2 best shares to buy right now in February

on February 2, 2022

January was a rocky start for many shares, including some that I consider the best to buy. But while the market may be having a tantrum, it’s created what appears to be an excellent buying opportunity for my portfolio. Let’s explore two of my top picks that I’m tempted to buy this month.

The talent behind AAA video games

Keywords Studios (LSE:KWS) isn’t the best-known game development studio. Yet it has its hand in most of the big-budget titles released each year. The company provides talent services to larger studios, working on franchises, including Microsoft‘s Halo and Activision Blizzard‘s Call of Duty.

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Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio.

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Despite delivering record-breaking growth in 2021, shares of Keywords Studios are actually down by around 5% over the last 12 months. The full-year results are scheduled to be released at the end of March. But looking at the latest trading update, revenue and profits for 2021 are expected to come in at €512m (£425m) and €86m (£71m), respectively.

By comparison, those figures are 37%% and 300% higher than in 2020. And since the pandemic only drove up demand for the group’s services, these figures are significantly ahead of 2019 levels as well.

This is by no means a risk-free investment. Management does have quite an aggressive, acquisitive growth strategy that could cause problems in the long term if acquired studios fail to meet performance expectations. But given the results achieved so far, I feel this is a risk worth taking. And with the shares currently down, now could be the best time to buy for my portfolio.

Are these the best shares to buy right now?

Unlike Keywords Studios, Judges Scientific (LSE:JDG) has had a fairly decent run of late. Over the last 12 months, the speciality scientific equipment developer has watched its shares climb by over 20%. But that would have been higher if it weren’t for the recent sell-off.

Last month, CEO David Cicurel sold a whopping £3.2m worth of shares in this business. And unsurprisingly, investors freaked out, sending the stock into a double-digit decline. But I think the market may have overreacted here. Even after this sale, Cicurel still owns over 10% of the shares outstanding.

To me, that signals his faith in this business remains strong. And looking at the latest trading update, it’s easy to see why. Organic order intake jumped 25.1% higher than a year ago and 8.5% higher than pre-pandemic levels, setting a new record. Consequently, management is now expecting earnings to come in higher than initially anticipated.

That certainly sounds promising to me. And it’s why I think these should be some of the best shares to buy right now. But even with the recent decline, I can’t deny the group does trade at a lofty valuation.

As it stands, the price-to-earnings ratio sits at a sizable 49. The group has historically carried a notable premium, but this does open the door to volatility like that seen last month. Yet I remain optimistic about this business’s future. So, despite this risk, I’m tempted to add some shares to my portfolio ahead of the earnings release in March.

But these aren’t only best shares to buy right now. Here is another that could be even more explosive…

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Zaven Boyrazian owns Keywords Studios. The Motley Fool UK has recommended Judges Scientific and Keywords Studios. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

I’d buy £10k of this FTSE 100 firm in a stock market crash

on February 2, 2022

There are plenty of companies in the FTSE 100 I would like to buy for my portfolio in the event of a stock market crash. However, if I had to buy just one stock, it is clear to me which business would deserve the place in my portfolio.

Financial data company Experian (LSE: EXPN) has some of the most deeply entrenched competitive advantages in the blue-chip index. The organisation provides credit rating and financial data services for consumers and businesses worldwide. I believe this business has so much potential, I would be willing to invest £10k in the stock. 

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Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

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FTSE 100 champion 

This is a pretty unique and exceptional business. The company has been building its data resources over the past few decades. Today, it has unrivalled access to consumer credit data and enterprises that supply this data worldwide. It has also spent hundreds of millions of pounds developing its own cybersecurity security protocols. This ensures the customers and suppliers of data that it is secure. 

A business cannot develop these sorts of competitive advantages overnight. As I noted above, it has taken the company decades to build its current data trove. The business has also spent years developing the security and infrastructure required to maintain and solidify its competitive advantage.

That said, this is not the only credit rating agency in the world. Experian does have competitors. These businesses are trying to compete for market share and have similar competitive advantages. This is probably the biggest challenge the corporation has to deal with right now.

Fighting off the competition will be a significant challenge for the group over the next couple of years. Despite its advantages, the company cannot take its position in the market for granted. 

Still, I think the business has tremendous potential over the next couple of years. Following the pandemic, the demand for consumer credit products has exploded. This is generating a windfall for the group. According to its latest trading update, total revenue growth hit 14% in the three months to the end of December.

Stock market crash opportunity  

I think it is unlikely this growth will grind to a halt in the event of a stock market crash. As such, I will be buying the shares hand over fist if the FTSE 100 falls substantially in the weeks and months ahead.

The stock has already fallen in value by around 20% from its all-time high printed at the end of December. If it falls further, I think the shares will only become more attractive.

Indeed, the company will not lose its competitive advantages because the stock market falls 20% or more. These advantages will remain in place for the next few decades, no matter what happens in the equity markets. 

That is why I would look to take advantage of a stock market crash sell-off and acquire a significant position and this FTSE 100 company at a discounted price. 


Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has recommended Experian. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

3 inflation-busting FTSE 100 dividend stocks to buy

on February 2, 2022

While payouts can never be guaranteed, one way of taking the sting out of inflation is to own big dividend stocks. Here are three that currently take my fancy from the FTSE 100.

Dependable dividend hiker

Top-tier insurance behemoth Legal & General (LSE: LGEN) would definitely be on my list of inflation-busting shares to buy. Analysts currently have the company returning 19.4p per share in FY22. At today’s share price, this becomes a yield of 6.7%. That’s pretty much double what I’d get from the index as a whole!

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Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio.

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Yes, the nature of Legal & General’s business means its share price performance is dictated to some extent by the health of the UK (and global) economy. However, a 22% return over the last five years beats the frankly pretty awful 5% achieved by the FTSE 100.

It’s also worth noting that, bar the anomaly that was 2020, the company has been a consistent hiker of cash payouts. An already-sizeable dividend yield that keeps growing? That’s just what I’d be looking for if I were determined to protect my wealth from the “silent killer“. 

At just nine times forecast earnings, I’m not about to complain over the price either. 

Safe as houses

Housebuilder Taylor Wimpey (LSE: PSN) is another stock for tackling rising living costs. It’s got a great track record of returning increasing amounts of cash to its owners. This trend doesn’t look like reversing in 2022.

As things stand, the £5.5bn cap company has a stonking forecast yield of 7.9%. To put that in perspective, even the best Cash ISA right now offers just 0.61% in interest. Importantly, the extent to which this is likely to be covered by profit (and therefore likely to be paid) is also far higher than over at rival Persimmon. To me, this makes Taylor Wimpey the better buy of the two. 

Government pressure on developers to cover the costs of removing dangerous cladding from flats across the UK means housebuilders haven’t had the best of starts to 2022. However, news that prices in January climbed at the fastest annual pace in 17 years suggests the property boom still has legs to it. 

At eight times earnings, I’d be happy to buy Taylor Wimpey for the passive income it throws off. 

Monster yielder

A final stock I’d consider buying to counter the impact of inflation is precious metals group Polymetal International (LSE: POLY). At 9.3%, it’s currently one of the highest-yielding stocks in the FTSE 100.

Normally, such a huge number would be a red flag. Since dividend yields are negatively correlated with share prices (when one goes up, the other goes down), Polymetal’s incredible cash returns imply investors are concerned about the company’s outlook. 

That’s probably not far from the truth. Clearly, the ongoing tension in Eastern Europe can’t be helping sentiment. Polymetal does, after all, operate mines in Russia and Kazakhstan. The gold price has also been in the doldrums recently.

That said, a lot of this looks priced in. The shares have tumbled 34% in the last year alone and now trade at less than seven times earnings. That’s arguably very cheap considering the regularly-hiked dividend should be comfortably covered by earnings.

Throw in the diversification Polymetal offers by operating in a completely different sector and I think this is another worthy candidate for an inflation-busting portfolio.

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Paul Summers has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Premium Bonds: how to check if you’ve won in February’s draw

on February 1, 2022

National Savings & Investments (NS&I) has announced its Premium Bond winners for February. So, if you currently hold Premium Bonds, here’s how you check to see whether you’ve won a prize.

What are Premium Bonds?

NS&I is the government’s savings provider. Alongside a number of normal savings products, NS&I also offers Premium Bonds. Holding these bonds enters you into a monthly draw. Prizes range from £25 to £1 million, so if you hold Premium Bonds, you technically have a chance of becoming a millionaire.

To win the jackpot with a single bond, you’ll have to beat odds of 1 in 56 million. However, there are millions of smaller prizes to be won, so your odds of winning in a single month aren’t anywhere near as terrible as this. For example, the chances of winning a £25 prize are just 1 in 34,500.

How can you buy Premium Bonds?

You can buy Premium Bonds online, by post or over the phone. Each bond is worth £1, though if you want to buy any, you have to purchase at least £25 worth. You can hold a maximum of £50,000 in Premium Bonds.

How can you check whether you’ve won in February’s draw?

The Premium Bond draw for February 2022 has been made. NS&I says its latest £1 million winners are based in Essex and Leeds. Interestingly, NS&I says its Essex winner purchased his or her winning bond less than a year ago.

To see whether you’re a winner, you can use NS&I’s prize checker tool. To do this, you’ll need to have your ‘holder’s number’ to hand and visit the NS&I website or use its Android or iOS mobile apps.

Alternatively, if you have a compatible smart speaker, you can ask Amazon’s ‘Alexa’ assistant to read out the winning numbers.

If you don’t manually check to see whether you’ve won, it’s worth knowing that NS&I also informs winners by email or text message.

How are Premium Bond prizes paid?

If you’re lucky enough to have won in February’s draw, you can have your winnings paid into your bank account.

Alternatively, you can have your prize money automatically reinvested to purchase more bonds. However, you’ll only be able to do this as long as you don’t already have more than 50,000 bonds.

If you want paper proof of your win, then you can also have your prize via cheque. NS&I hoped to phase out cheque payments last year but made a u-turn following a backlash from customers.

To change your method of payment, you must log in to your online Premium Bond account via the NS&I website or app.

Are Premium Bonds worth it?

While Premium Bonds offer the chance to win a million, holding them means you don’t earn any interest. In the past, this was a big drawback, as you were essentially sacrificing a decent, guaranteed interest rate for the chance to win a prize. 

Yet with savings rates so low – currently the top easy-access savings rate pays just 0.71% – it’s not difficult to see why many will now be attracted to Premium Bonds. After all, if you can only earn £7.10 per year in interest for every £1,000 saved, then why not chance your luck?

Of course, while Premium Bonds may compare well to easy access savings accounts, if you’re happy to lock away your cash for a set period of time, then it’s probably best to compare them to fixed-rate savings accounts.

Fixed-rate savings accounts pay a higher interest rate than easy-access accounts, and typically, the longer you can lock away your cash, the higher the rate. However, if you do go for a lengthy term, bear in mind that if savings rates rise in future, you wouldn’t benefit. So longer fixes involve an element of risk.

To see a list of the current fixed savings rates available, see our top-rated fixed-rate savings accounts.

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Karl Talbot

Karl is a writer specialising in investing and personal finance content. He regularly contributes articles on savings, bank accounts, mortgages, and loans. He was previously a Personal Finance Writer for MoneySavingExpert.


Some offers on The Motley Fool UK site are from our partners — it’s how we make money and keep this site going. But does that impact our ratings? Nope. Our commitment is to you. If a product isn’t any good, our rating will reflect that, or we won’t list it at all. Also, while we aim to feature the best products available, we do not review every product on the market. Learn more here. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard, and Tesco.

Retirement: 66% of Gen Z might pick crypto over pension investment

on February 1, 2022

Image source: Getty Images

Crypto investing is big news. And new research by smart finance app W1TTY reveals that many young investors prefer crypto investments rather than pension investments. W1TTY’s research shows that 34% of investors aged 18 to 24 years old would rather invest in cryptocurrency. A further 30% aren’t sure whether they prefer crypto or pensions.

Here, I take a look at the research showing how young investors feel about crypto and pension investing. I also explore the influence of social media on young investors and why they should consider diversifying their investments.

Young investors prefer crypto

New research shows that 34% of 18 to 24 years olds prefer investing in cryptocurrency like Bitcoin, over traditional investments. The figures are even higher for young men, with 46% preferring crypto to retirement savings, compared with 27% of young women.

The figures come from research by smart finance app W1TTY, which surveyed 2,000 18 to 24-year-olds in the UK on their financial habits and attitudes towards savings and investments.

A further 30% of 18-24-year-olds aren’t sure whether they would rather invest in cryptocurrency than a pension, suggesting a concerning knowledge gap around personal finance and investments among the generation.

Young investors feeling bullish

The research suggests that many young investors aren’t aware of the risks of crypto investments. Only 9% are worried about making poor investment decisions.

Ammar Kutait, CEO and founder of UK-based fintech W1TTY, explains “While crypto may seem like an attractive asset class, it’s also an incredibly volatile one, so anyone choosing to invest in it should understand the risks involved. As we saw last year, impressive gains can be met with sudden, sharp declines.”

More advice is needed on crypto investing

Many younger investors also feel unsure about how crypto works and would value some guidance. Almost a fifth (18%) want their bank to provide support and advice on investing in digital currencies.

The influence of social media

For many young people, social media and the Internet have become go-to destinations for financial advice. Research shows that 24% of Gen Z seek financial advice on social media and 33% of use Google to access financial advice. A worrying 10% don’t seek any financial support whatsoever. Meanwhile, in 2021 alone, there were 4.4 billion views of TikTok posts with the hashtag #personalfinance.

The power of long-term investing

The lack of focus on retirement and pension savings is a missed opportunity for young investors. In fact, it’s long-term investing that is often the best way to build retirement wealth. The power of compounding means that investments made when you’re 18 in a stocks and share ISA or a pension scheme could be worth far more than when you’re older.  

For example, £200 per month invested between the age of 18 and 70 years old could turn into £813,253 by the time you retire. In contrast, £400 per month invested between the age of 40 to 70 years old would only be worth £391,702 at retirement.

If you save into an employer’s pension, then those figures will be even higher. You’ll also benefit from tax relief and employer’s contributions.

The importance of diversifying

Most experts agree that it’s important to aim for a diversified investment portfolio. That means your investments will be spread between different assets classes and geographies, not just crypto. As Ammar Kutait explains, “It’s important for young people to diversify their portfolios. Spreading their finances across traditional investment vehicles and alternative assets is just one strategy they should be considering.”

If you want to know more about investing, then check out our simple guide on share dealing for beginners. If you’re ready to invest, then take a look at our top-rated share dealing platforms and our top-rated stocks and shares ISAs.

Investing in Cryptocurrency is extremely high risk and complex. The Motley Fool has provided this article for the sole purpose of education and not to help you decide whether or not to invest in Cryptocurrency. Should you decide to invest in Cryptocurrency or in any other investment, you should always obtain appropriate financial advice and only invest what you can afford to lose.

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Alice Guy (FCA)

Alice is a Suffolk-based personal finance writer specialising in pensions, tax, investment and small businesses. She is a qualified Chartered Accountant and has previously worked for KPMG London and Tesco Plc.


Some offers on The Motley Fool UK site are from our partners — it’s how we make money and keep this site going. But does that impact our ratings? Nope. Our commitment is to you. If a product isn’t any good, our rating will reflect that, or we won’t list it at all. Also, while we aim to feature the best products available, we do not review every product on the market. Learn more here. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard, and Tesco.

Lloyds Bank launches cheapest mortgage on record: but is it right for you?

on February 1, 2022

Image source: Getty Images

Lloyds Bank has launched the cheapest 10-year mortgage the UK has seen since records began, according to a report in The Telegraph.

The low-cost mortgage has a fixed interest rate of 1.66% and comes at a time when UK homeowners face rising energy costs and increased living expenses. But is a 10-year commitment right for you? Here’s a closer look at the detail behind the headline.

What is the Lloyds Bank fixed-rate mortgage deal all about?

According to brokers, it’s the lowest fixed-rate deal ever seen on a 10-year mortgage. Previously, the cheapest mortgage on record was offered by TSB (1.74%). The lowest rate ever offered by Lloyds was previously 1.99%.

However, the 1.66% offer isn’t available to all home buyers – it’s only open to those remortgaging. You’ll also need a 40% deposit (at least) and pay a £1,000 fee.

But that’s not all. You’ll face a 6% early exit penalty if you want to leave the deal within the first five years. According to mortgage brokers, this is higher than average. You can still be penalised after five years, but you’ll be charged according to a sliding scale.

Who else offers cheap 10-year mortgages?

A number of lenders have introduced or lowered rates on their 10-year mortgages.

Halifax has just launched a low-cost 10-year mortgage at 1.68%. The mortgage is available to anyone moving home. However, you’ll need a minimum 40% deposit and have to pay a £999 fee. If a 40% deposit is too high, a 25% deposit makes you eligible for a 1.77% 10-year fixed-rate mortgage (plus the £999 arrangement fee).

Leeds Building Society also offers two 10-year fixed-rate mortgages, one at 2.08% (up to 65% loan-to-value ratio) and another at 2.14% up to 75% LTV. 

The flurry of 10-year fixed mortgages reflects an increase in interest from homeowners and home buyers. In fact, according to tech firm Twenty7Tec, searches for 10-year fixed-rate mortgages rose by 70% at the end of January. 

Is it worth fixing your mortgage for 10 years?

If you’re remortgaging or looking to move, these offers look enticing. After all, some mortgage brokers and analysts are predicting that by the end of the year, interest rates could increase five times. That potentially means a typical mortgage could rise by more than £1,000.

With that in mind, locking in an ultra-competitive 10-year fixed rate looks like a good deal, right?

Well, don’t forget that by its nature, a 10-year mortgage lacks flexibility, and you’ll pay hefty penalties if you want to switch lenders. You’re also likely to face fees if you want to pay off your mortgage earlier than scheduled too. Plus, if interest rates fall, you won’t benefit from any reductions as you’ll be tied in for the remaining mortgage term.

Ultimately, whether a 10-year mortgage is right for you really depends on your personal circumstances and your appetite for risk. While there is definitely less flexibility in a 10-year mortgage compared to a two- or even five-year mortgage, it could protect you from increases if interest rates soar in the short term.

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Anne East

Anne specialises in personal finance and insurance, covering details that enable you to make informed decisions based on facts.


Some offers on The Motley Fool UK site are from our partners — it’s how we make money and keep this site going. But does that impact our ratings? Nope. Our commitment is to you. If a product isn’t any good, our rating will reflect that, or we won’t list it at all. Also, while we aim to feature the best products available, we do not review every product on the market. Learn more here. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard, and Tesco.

M&A boom: shareholders in UK takeover targets count their gains

on February 1, 2022

Image source: Getty Images.

With M&A activity showing no signs of abating, shareholders in UK takeover targets have received significant premiums in return for agreeing to sell their shares. US private equity firms scooped up a number of UK companies in 2021, including Morrisons and John Laing. As the New York Times put it, “Private equity firms all want the same thing: British companies.”

According to Refinitiv, global M&A hit $364 billion (£270 billion) in January 2022, the third-highest on record, while European deals were at their highest for 20 years. Refinitiv reports that the UK was the second “most-targeted nation”, accounting for 13% of cross-border M&A deals. Technology was the leading sector by value, accounting for a third of global M&A. 

Let’s explore how shareholders can make money from M&A, why UK companies are attractive takeover targets and how to identify possible takeover targets.

What is M&A?

The term ‘M&A’ refers to mergers and acquisitions of companies. Although often used interchangeably, they’re actually different processes:

  • In a merger, two companies (usually of a similar size) join together. For example, 2021 saw the £31 billion merger of O2 and Virgin Media.
  • In an acquisition, one company ‘buys’ the other company. Meggitt plc (a UK defence and aerospace company) is in the process of being acquired by its US rival, Parker-Hannifin.

How can shareholders make money from M&A takeover targets?

Shareholders of takeover targets are usually offered an attractive premium in return for selling their shares. The ‘bid premium’ measures the offer price against the share price immediately before the acquisition is announced.

According to Ashurst, the average bid premium was 42% for UK companies in 2021. Meggitt shareholders were offered an impressive 71% premium to sell their shares. And US private equity firm KKR recently offered shareholders in John Laing (a UK infrastructure company) a 27% bid premium.

Morrisons was the target of a bidding war last year, with the eventual winner, CD&R (another US private equity firm), paying shareholders 287 pence per share. This represented a 61% premium to the pre-announcement share price of 178 pence. Shareholders would have received even more for their shares had they sold at their peak of 297 pence during the bidding process.

However, bid premiums can sometimes flatter shareholder returns. Companies typically become takeover targets when they’re considered to be undervalued. In the case of Morrisons, the offer price was only at a 6% premium to its share price of 270 pence in 2018, before the share price halved in value.

If you’re a shareholder in the acquirer, or in a merged company, you’ll receive shares in the new, enlarged group. In principle, this should boost shareholder value by delivering higher growth and reducing costs. However, according to a study by the Harvard Business Review, 60% of M&A deals destroy shareholder value.

Why are UK companies attractive takeover targets?

British companies are currently trading at relatively low valuations compared to their US rivals. The FTSE All-Share index has a current price-earnings ratio (a measure of underlying value) of 15.6, compared to 25.8 for the S&P 500 (the 500 largest US companies).  

PWC reports that 2021 was a record year for private equity fund-raising, with firms sitting on over $2 trillion (£1.5 trillion) of funds to invest. Pinsent Masons commented that the “mismatch between the perceived underlying value of a company and its prevailing share price will continue to attract private equity funds to the UK” in 2022.

How do you identify potential takeover targets?

Unfortunately, there’s no magic formula, and it’s not advisable to buy shares in a company solely in the hope that it becomes a takeover target.

However, stockbroker Jefferies suggests that targets tend to have a market value of under $10 billion and profit margins of over 15%. Jefferies identified three categories of possible targets:

  1. Subject of speculation (e.g. BT, DS Smith and Smith & Nephew)
  2. Industry consolidation (e.g. Just Eat, Brewin Dolphin and Burberry)
  3. Previously-failed bids (e.g. Qiagen and Spire Healthcare)

[bottom_pitch]

How can you invest in shares?

If you’re looking for a tax-efficient way of investing in shares, you might consider a stocks and shares ISA. You can contribute up to £20,000 per tax year, and if you do manage to buy shares in a takeover target, gains are free of capital gains tax.

We’ve compared some of the top stocks and shares ISA providers on criteria such as fees, ease of use and choice of investments. IG offers low commissions on US and UK shares for active traders within its stocks and shares ISA.

If you’re investing in shares for the first time, it’s worth reading our beginner’s guide to picking the best trading platforms. One of our top-rated platforms, Interactive Investor, provides regular share tips and ideas to customers.

If you’re looking for a low-cost share dealing account, we’ve also got a list of top-rated providers for you. FinecoBank’s Multi-Currency Trading Account charges £2.95 for trades in UK shares and might be an attractive option for active traders.

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Jo Groves


Some offers on The Motley Fool UK site are from our partners — it’s how we make money and keep this site going. But does that impact our ratings? Nope. Our commitment is to you. If a product isn’t any good, our rating will reflect that, or we won’t list it at all. Also, while we aim to feature the best products available, we do not review every product on the market. Learn more here. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard, and Tesco.

Credit cards: how to save £500 per year in interest

on February 1, 2022

Image source: Virgin Money.

With the cost of living crisis in full swing, more of us than ever are looking for ways to save money. If you have an outstanding credit card balance, then you may be able to save some serious cash by transferring it to a 0% balance transfer credit card. The average British household pays around £500 credit card interest per year and they could wipe this out with a balance transfer.

Here, I take a look at how much credit card debt the average British household has and how much interest they might be paying. I then look at how much they could save on interest by transferring their balance to a 0% balance transfer card.

How much credit card debt do Brits have?

The money charity estimates that the average British household has around £2,582 in credit card debt. Of course, this is an average, so many households have a much higher level of credit card debt.

Levels of household debt have increased for many families over the last two years as they have struggled with reduced pay and increased living costs. Many households have been forced to dip into savings and pay for bigger purchases with a credit card.

It now seems that household finances are likely to be even tighter in 2022. Inflation is galloping and both Council Tax and National Insurance are due to increase in the spring. It looks like energy prices will also rise when the current price cap comes to an end in April.

This squeeze on family finances means that many households are likely to struggle with repaying their debts during 2022.

How much interest do Brits pay?

Credit card interest averages between 20% and 25% per year. That means the average household is paying between £516 and £645 per year in interest alone and up to £1,936 every three years. Again, that’s based on the average household credit card debt of £2,582.

This interest makes it even more difficult to pay off debt, and many Brits are stuck paying the minimum balance on their credit card.

How does a 0% balance credit card work?

A 0% balance transfer credit card allows you to transfer your balance and pay no interest for a set number of months. By doing so, the average British household could save £516 to £645 per year in interest.

You may have to pay a small transfer fee of around 1% to 2% of the amount you transfer. However, some balance transfer credit cards don’t charge any transfer fees. Using a 0% credit card makes it much easier to clear debt, as all your payments will go towards paying off the balance rather than interest.

Some balance transfer credit cards also offer 0% interest on purchases during the introductory period.

Am I eligible for a 0% balance transfer credit card?

You will usually need a fairly good credit rating to be accepted for a 0% balance transfer credit card. Some websites allow you to perform a soft credit check to see if you are likely to be accepted before you apply. This is a good idea because it won’t leave a mark on your credit record.

Take a look at our credit card eligibility checker to see a list of credit cards that you may be eligible for.

How can you compare 0% balance credit cards?

Different 0% balance transfer credit cards have different features depending on the lender. Here are things to consider when you’re applying for a new card:

  • How long is the introductory 0% interest period?
  • Will purchases also be charged at 0% interest?
  • Is there a balance transfer fee?
  • Are there any offers (such as cashback) for new cardholders?

If you’re ready to apply for a card, then take a look at our list of top-rated 0% balance transfer credit cards.

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Alice Guy (FCA)

Alice is a Suffolk-based personal finance writer specialising in pensions, tax, investment and small businesses. She is a qualified Chartered Accountant and has previously worked for KPMG London and Tesco Plc.


Some offers on The Motley Fool UK site are from our partners — it’s how we make money and keep this site going. But does that impact our ratings? Nope. Our commitment is to you. If a product isn’t any good, our rating will reflect that, or we won’t list it at all. Also, while we aim to feature the best products available, we do not review every product on the market. Learn more here. The statements above are The Motley Fool’s alone and have not been provided or endorsed by bank advertisers. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK has recommended Barclays, Hargreaves Lansdown, HSBC Holdings, Lloyds Banking Group, Mastercard, and Tesco.

Here’s a FTSE 100 growth stock I’m buying right now!

on February 1, 2022

Key points

  • FTSE 100 stock with an excellent earnings record
  • Exciting long-term exploration projects
  • Could be affected by Covid fears and the gold price

The FTSE 100 contains a number of high performance, high growth stocks. Having surveyed the entire index, I’ve found an excellent company that could provide me with growth. The stock, Polymetal International (LSE: POLY), operates gold and silver mines in Russia and Kazakhstan. Why do I consider this a great growth stock and why am I buying it right now? Let’s take a closer look.

An excellent growth record 

When assessing company growth prospects, I like to first look to earnings per share (EPS). This tells me how profitable the stock is for investors. For the calendar year 2020, Polymetal recorded an EPS of ¢228. Taken in context, this is a marked increase from the same period five years previously, when it was just ¢90.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio.

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What this means is that the average annual EPS increase is 20.4%. I view this as an extremely important factor in determining that this stock will likely provide long-term growth within my portfolio.  

The fourth quarter report, from 2021, also strengthens my view that Polymetal is an excellent FTSE 100 growth stock. The company registered a 2% increase in gold production for the 2021 calendar year. It is worth noting that this growth is about 5% above expectations.

Long-term production by this FTSE 100 stock

A recent development is the Novopet deposit in Russia, which is estimated to contain around 2.4m ounces of gold. Furthermore, as much as 37% of the deposit may be copper. Polymetal CEO Vitaly Nesis stated that “it also more than doubles our exposure to copper”. This is important, because copper is extremely important for future green developments, like electric vehicles.

Another exciting development is the $471m investment in the Veduga project. This is a deposit in the Krasnoyarsk region of Russia. Thinking of the long term, this project should produce 200,000 ounces of gold per year for a 21-year period. While production will begin in 2025, this venture demonstrates that Polymetal is forward-looking and planning for many years into the future.

Possible threats to this FTSE 100 stock

As is the case with many mining stocks around the world, any increase in Covid cases could stall operations at short notice. Currently, Russia is still experiencing relatively high levels of the Omicron variant. This can result in absences. The saving grace with this threat is that the problem will almost certainly be short-term. I am confident any absences will subside.

Furthermore, if the US Federal Reserve increases rates in March 2022, then this might negatively impact the price of precious metals. Nonetheless, the correlation between rate hikes and falling gold prices is not terribly strong, historically. So, while the price of gold might fall, it is not guaranteed.

Polymetal is a FTSE 100 stock with solid growth potential. Its EPS record, together with its exploration activities, demonstrates the possibility of long-term gains. Although there are Covid fears and the threat of falling gold prices, these are short-term problems that will soon become insignificant. I will certainly be buying shares in this stock now!

FREE REPORT: Why this £5 stock could be set to surge

Are you on the lookout for UK growth stocks?

If so, get this FREE no-strings report now.

While it’s available: you’ll discover what we think is a top growth stock for the decade ahead.

And the performance of this company really is stunning.

In 2019, it returned £150million to shareholders through buybacks and dividends.

We believe its financial position is about as solid as anything we’ve seen.

  • Since 2016, annual revenues increased 31%
  • In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259
  • Operating cash flow is up 47%. (Even its operating margins are rising every year!)

Quite simply, we believe it’s a fantastic Foolish growth pick.

What’s more, it deserves your attention today.

So please don’t wait another moment.

Get the full details on this £5 stock now – while your report is free.


Andrew Woods has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

2 of the best shares to buy now!

on February 1, 2022

Key points

  • Vodafone has increased its free cash flow 
  • Fresnillo continues to grow profits
  • Both are showing signs of post-pandemic recovery 

Like many investors, I’m eager to find the best stocks with which to grow my portfolio for 2022. I’ve found two that I think should do great things for me this year. These two shares, Vodafone (LSE: VOD) and Fresnillo (LSE: FRES), give me exposure to the telecommunications and metals sectors. Why do I think they are the best shares for me to buy now? Let’s take a closer look.

Telecommunications recovery

A mobile telecommunications company, Vodafone has a presence in Europe and Africa. I like this stock because it is profitable and growing this profit year by year. For the fiscal year (FY) 2021, Vodafone bagged a profit before tax of €4.4bn.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio.

Click here to claim your free copy now!

As a potential shareholder, I find this impressive, especially when this figure was a mere €795m the previous year. For me, this is a strong indication that the stock is recovering after the pandemic and I think now is a good time for me to buy shares.

What’s more, the first-half report of FY22 lifted earnings guidance by €200m to €15.2bn. Indeed, free cash flow (FCF) increased by €100m to €5.3bn. These figures are of course good signs and suggest that Vodafone is enjoying a period of growth after the pandemic. This recent track record makes it look like one of the best shares for me to buy now.

On the flipside, Vodafone’s debt pile stands at €44.3bn. Its debt-to-equity ratio is 1.66, slightly above the industry average of 1.28. While this is not ideal, I believe the growth achieved in the post-pandemic recovery will alleviate the pressure on Vodafone caused by its debt.

A silver miner – one of the best shares to buy now?

Fresnillo, a silver miner operating in Mexico, is naturally vulnerable to the underlying commodity price. Just last week, silver fell 6.1% on talk of a rate hike by the US Federal Reserve in March 2022. While most assume that precious metals fall when rates climb, this correlation is actually historically weak.

The company is also consistently profitable and growing with each year. In the calendar year 2020, for instance, profit before tax was $551.25m. This was up from $178.75m the previous year.

In a recent trading update from January 2022, however, Fresnillo lowered production guidance. This is chiefly due to a rise in Covid-19 infections in Mexico and new labour laws in the country.

The labour laws mean that the company is increasingly turning to contractors and is having to work harder to keep its absences low. This news recently led RBC to downgrade Fresnillo. For me, though, I view these as short-term issues that should subside soon.

Both of these stocks may be ideal for growth. They are profitable and should emerge stronger after the pandemic. While challenges remain for both companies, I truly believe that they are two of the best shares to buy now. I already own Fresnillo stock and will be buying more at these low levels, in addition to new Vodafone shares.

FREE REPORT: Why this £5 stock could be set to surge

Are you on the lookout for UK growth stocks?

If so, get this FREE no-strings report now.

While it’s available: you’ll discover what we think is a top growth stock for the decade ahead.

And the performance of this company really is stunning.

In 2019, it returned £150million to shareholders through buybacks and dividends.

We believe its financial position is about as solid as anything we’ve seen.

  • Since 2016, annual revenues increased 31%
  • In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259
  • Operating cash flow is up 47%. (Even its operating margins are rising every year!)

Quite simply, we believe it’s a fantastic Foolish growth pick.

What’s more, it deserves your attention today.

So please don’t wait another moment.

Get the full details on this £5 stock now – while your report is free.

Andrew Woods owns shares in Fresnillo. The Motley Fool UK has recommended Fresnillo and Vodafone. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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