GlaxoSmithKline plc, Royal Dutch Shell Plc, Lloyds Banking Group PLC, Glencore PLC And BP plc Are The Nation’s Top 5 Isa Stocks

Harvey Jones raises a cheer for crowd pleasers GlaxoSmithKline plc (LON: GSK), Royal Dutch Shell Plc (LON: RDSB), Lloyds Banking Group PLC (LON: LLOY), Glencore PLC (LON: GLEN) & BP plc (LON: BP).

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Do you believe in the wisdom of crowds? At the Fool, we’ve generally made a virtue of going against the crowd, as exemplified in Warren Buffett’s famous quote “be greedy when others are fearful, and fearful when they are greedy“. You may also try to shun the crowd but you still can’t ignore it.

The Share Centre has just named the top five popular Isa stocks among its crowd of investors. You probably won’t be surprised by the results, well maybe one of them will deliver a jolt!

GlaxoSmithKline

In with a bullet at number one is pharmaceutical giant GlaxoSmithKline (LSE: GSK), possibly the FTSE 100’s favourite long-term buy and hold. Glaxo has stretched our patience lately thanks to the Chinese bribery scandal, expiring patents and concern about its drug pipeline. The stock is actually down 12% over the past year but it does now trade at just 7.86 times earnings, while offering a juicier-than-usual yield of 5.86%. The Share Centre reckons its “pipeline of new drugs, diversification across consumer healthcare as well as biotechnology, and increasing exposure to emerging markets” makes it a ‘buy’ and the crowd goes wild.

Royal Dutch Shell

Oil giant Royal Dutch Shell (LSE: RDSB) has had an even more torrid year, falling 22%, but it’s up 16% in the last month and if the oil price revival continues you can expect more of that. The yield remains in peril although management will fight tooth and nail to retain it, and again, pricier oil will help. It isn’t often that a company’s yield matches its P/E ratio, but both are hovering around 7.5% today. If you want to play the oil price rebound, it may be time to join the crowd.

Lloyds Banking Group

I love Lloyds Banking Group (LSE: LLOY) so much I named it my stock tip for 2016, and in this case I don’t mind running with the crowd. The share price is fighting back after getting caught up in the January sell-off as investors anticipate a forecast yield of 6.5% for December 2017. The slowing domestic economy may knock this UK-focused retail bank but that shouldn’t deter investors who should be looking to hold this stock for decades.

Glencore

I was surprised to see troubled mining giant Glencore (LSE: GLEN) flying high in fourth place but it only goes to show there’s no such thing as bad publicity. After last year’s travails, the stock is up a crowd-pleasing 71% in the last month but don’t buy and expect a repeat performance in March. The commodities rally may be spent for now, as the reality of a slowing China reasserts itself. Expect more volatility to come.

BP

Investors can’t shake their oil addiction with BP (LSE: BP) revving its engines at number five. It currently yields a gushing 7.28% but it remains at risk with net debt soaring from $22.6bn to $27.2bn over the last year and the world swimming in a glut of black gooey stuff. The Share Centre hails it as a “buy” as management slashes costs to survive cheap oil. The truth is that where the oil price leads, BP will follow. So where will oil go next? No crowd on earth can answer that.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Harvey Jones has no position in any shares mentioned. The Motley Fool UK has recommended GlaxoSmithKline and Royal Dutch Shell B. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Young woman working at modern office. Technical price graph and indicator, red and green candlestick chart and stock trading computer screen background.
Investing Articles

Here’s the Tesco share price forecast for the next 12 months!

Tesco's valuation has dropped to multi-year lows after recent share price weakness. Is now the time to consider buying the…

Read more »

Illustration of flames over a black background
Investing Articles

Just released: March’s higher-risk, high-reward stock recommendation [PREMIUM PICKS]

Fire ideas will tend to be more adventurous and are designed for investors who can stomach a bit more volatility.

Read more »

Investing Articles

I asked ChatGPT for the best FTSE 100 investment trust to buy… here’s what it said

There aren't many FTSE 100-listed investment trusts and according to ChatGPT there’s only one winner. Dr James Fox explores.

Read more »

Investing Articles

How much should investors put in an ISA to achieve the average UK wage in passive income?

Millions of Britons use the Stocks and Shares ISA as a vehicle to build wealth, but a successful investor can…

Read more »

Investing Articles

2 cheap FTSE dividend stocks to consider buying for an ISA

The deadline for using up the Stocks and Shares ISA allowance is almost upon us. Paul Summers has spotted two…

Read more »

Investing Articles

£20k in a Stocks and Shares ISA? Here’s how an investor could target £1,342 in passive income each month

Christopher Ruane explains how a long-term approach to investing a Stocks and Shares ISA could generate a four-figure monthly income.

Read more »

Shot of an young Indian businesswoman sitting alone in the office at night and using a digital tablet
Investing Articles

Millions are missing out on ISA account benefits! Here’s what I’m doing now

Swathes of people are missing the chance to supercharge their returns with a Stocks and Shares or Lifetime ISA account.…

Read more »

Hand flipping wooden cubes for change wording" Panic " to " Calm".
Investing Articles

Here’s my plan to survive and thrive in a stock market correction

A falling stock market can be an opportunity, but investors need a plan. Stephen Wright shares his strategy for taking…

Read more »