Quick FA of Total Freetrade Offerings

#1

I downloaded the csv file with all US, UK stocks and ETFs and ran it through my FA spreadsheet. Not so useful for investing, but I found it sort of interesting anyway, so thought I’d share. Here’s some datapoints for 100% ownership for trailing year for all of Freetrade’s current offerings combined into those two categories:

  • US stocks would have a 3.5% total return compared with -8.5% for UK/ETFs. (This was due to a small minority of firms who have performed terribly - I’m looking at you, Debenhams, Metro, Superdry, etc., corrected for some errors in the data.)
  • UK/ETFs are very low volatility compared to benchmarks (beta 0.68), whereas the US stocks are weighted towards the riskier end of the spectrum at 1.11.
  • Aggregated projected growth in earnings for US offerings are high at 17.8%, UK/ETFs slightly lower at 14.3%.
  • UK/ETFs = moderate debt. US = higher.
  • 38 UK/ETFs pay out more than 5% in dividends, compared with just 4 US stocks.
  • UK/ETFs are rated as slightly undervalued at current market rates. Not so for US stocks.

Conclusion, if any: Pick wisely. :cowboy_hat_face:

7 Likes

(HP) #2

UK stocks will start to outperform once sterling turns. It’s an easy ride to 1.4 on GBP USD. That will in turn mean US returns are hurt if you are purchasing in Sterling.

2 Likes

#3

Apart from the vastly superior investment case which is proven here, anyone find investing in UK firms more interesting? Guess we’re a little biased here, but there just seems like far more variety than the endless US large caps of industrials, techs and congloms, and I have >50% of my overall portfolio in US equities.

2 Likes

#4

Do you have a list of the 38 companies that pay more than 5% dividend?

0 Likes

#5
  • Haven’t checked them individually so there may be errors.
Company Yield
Kier Group: 13.36%
Centrica: 11.004%
Persimmon: 10.164%
Taylor Wimpey: 9.649%
Vodafone Group: 9.118%
Royal Mail: 9.08%
Direct Line Insurance Group: 8.686%
SSE: 8.408%
IG Group Holdings: 8.191%
Card Factory: 8.074%
Standard Life Aberdeen: 7.947%
Dixons Carphone: 7.687%
Halfords Group: 7.639%
Imperial Brands: 7.466%
Jupiter Fund Management: 7.326%
William Hill: 7.261%
Barratt Developments: 7.239%
Aviva: 7.165%
Superdry: 7.058%
WPP: 6.778%
BT Group: 6.773%
Marks and Spencer Group: 6.707%
British American Tobacco: 6.499%
Stagecoach Group: 6.379%
Man Group: 6.073%
ITV: 6.044%
Admiral Group: 6.001%
HSBC Holdings: 5.932%
Royal Dutch Shell: 5.81%
Legal & General Group: 5.711%
Wm Morrison Supermarkets: 5.614%
National Grid: 5.598%
BP: 5.486%
Hays: 5.401%
Renewables Infrastructure Group: 5.301%
John Wood Group: 5.183%
GlaxoSmithKline: 5.161%
F&C Commercial Property Trust: 5.076%
Greene King: 5.025%
5 Likes

(Mark L) #6

Kier dividend has been cut from 46p to 4.90p for May. I sold my stock for around £2 profit. Share price was falling as fast as it was rising.

1 Like

(Dave Smith) #7

That’s the danger of chasing yield without looking at the company as a whole. If the yield is high because of a collapsing share price it’s usually only a matter of time before they cut the dividend.

2 Likes

(Mark L) #8

Don’t quote me on this, but i think the share price dropped because of the dividend cut.

Deffo do some background research before buying.

0 Likes

(Dave Smith) #9

Looks like it was already falling though, from a quick glance at the chart

0 Likes

#10

Absolutely. To be honest, I don’t even consider dividends when I look to invest at all. If I get one, a bonus, but I don’t factor them into the considerations to begin with.

1 Like

(Mark L) #11

Do you not see Dividends as a type of interest?

0 Likes

#12

Yes, of course. But over the long term I don’t think the evidence supports the conclusion that concentrating on dividend yield is more beneficial than looking at a broader set of ‘value’ metrics. Each to their own, though. I don’t know if there’s necessarily a ‘right’ way to do this.

3 Likes

(Mark L) #13

Totally, no right or wrong way.

1 Like