Is Freetrade recommending stocks in Stock Take etc?

I’m sorry to yet again be the resident naysayer, but this sort of thing makes me a little uncomfortable as undeniably useful as it is.

I do recognise the need to educate investors, but I think it can be done without marketing specific companies, as effectively happened with Fever Tree.

Despite the disclaimer buried at the bottom of the page, I think it could be construed by some as advice especially as Freetrade’s aimed at beginners.

I’d worry that a novice might use such information to build a portfolio consisting of highly volatile shares, such as EVR, simply because they have the highest yield.

There’s more to building a high-yield portfolio: yet the post makes next-to no mention of other important factors such as size of company, dividend cover, dividend growth record, debt levels and sector diversification.

Clearly, it’s not as overt but I think you could draw comparisons with the “news” articles posted by Hargreaves Lansdown, headlined “36 dividend stocks you could retire on” and the like.

Marketing-wise, I hoped Freetrade would go in a different direction (YouTube ads etc).

As always, it’s just my two pennies’ worth!

8 Likes