Most Popular Stocks of Q1

Which stocks have Morningstar.co.uk readers been most interested in so far this year? Whether it's for growth or income, these are the 10 most popular shares

Emma Wall 4 April, 2014 | 9:58AM
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Dividend payers have dominated the most popular securities chart so far this year – with the FTSE 100’s biggest paying income stock Vodafone coming in third place.

Investors in UK-listed companies will be rewarded with a £101.1 billion pay-out in 2014, as dividends are predicted to jump 27%. Buoyed by a special £16.6 billion dividend from Vodafone companies will pay out a record amount of cash, smashing the previous record set in 2012 of £80.6 billion.

 Supermarket shares Tesco which pays a dividend of 5% and Morrisons which is yielding 5.9% also feature in the top 10. These two stocks are also considered undervalued by Morningstar analysts.

The first three months of the calendar year are known as ISA season – the last chance for investors to use that fiscal year’s tax-efficient allowance. As well as Vodafone and supermarkets, this ISA season investors have been keen on banking stocks. Lloyds, HSBC and Barclays all feature in the top 10 most popular securities in the first quarter of 2014. HSBC pays an income of 4.96%, well above the rate of inflation, and Barclays yields 2.65%. But Lloyds – once among the biggest dividend payers of the FTSE 100 has yet to reinstate a dividend following the financial crisis. Jupiter Financial Opportunities fund manager Guy de Blonay said he expects Lloyds to reintroduce dividend payments either the end of 2014, or early 2015.

“Lloyds is half way between restructuring and becoming a dividend daddy as we call them; a company that doesn’t need to spend or retain too much of its earnings power to fund growth, but instead of funding that growth, giving money back to shareholders,” he said.

Most Popular Shares of Q1 2014

Quindell Portfolio (QPP)
Sector: Technology

Lloyds (LLOY)
Sector: Financial Services

Vodafone (VOD)
Sector: Communication Services

Blinkx Plc (BLNX)
Sector: Technology

Tesco (TSCO)
Sector: Consumer Defensive

Barclays (BARC)
Sector: Financial Services

HSBC (HSBA)
Sector: Financial Services

Blur Group (BLUR)
Sector: Technology

Royal Mail (RMG)
Sector: Industrials

WM Morrison Supermarkets (MRW)
Sector: Consumer Defensive

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Barclays PLC204.85 GBX-1.54Rating
HSBC Holdings PLC683.70 GBX-1.91Rating
International Distributions Services PLC319.00 GBX-1.24
Jupiter Financial Opportunities L Inc841.16 GBP0.32Rating
Lloyds Banking Group PLC55.56 GBX-0.93Rating
Tesco PLC308.60 GBX-0.10Rating
Vodafone Group PLC71.62 GBX-0.91Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar

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