Each week, I’ll be writing about a new share tip that I’ve seen throughout the stock market and investment world.
Make sure you regularly check in to find out the top share tips today UK.
For further reading on stocks and shares tips, why not check out my 10 Best Stocks and Shares to Buy Now?
Please note: this share pick is not a personal recommendation or investment advice. Do not buy these investments solely based on what you read in this article.
- Best for low-cost trading
- Minimum deposit £10
- 0% commission trading stocks
68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees
|Company name (ticker code)||Overview||Share price (as of 03/05/2022)||Pays dividends?||Source|
|McDonald’s (MCD)||A company that needs little introduction. McDonald’s is a fast-food franchise with more than 35,000 restaurants in over 100 countries. They serve around 70 million customers across the globe each day.||$245.04||Yes||https://www.ii.co.uk/analysis-commentary/benefits-buying-shares-resilient-global-brand-ii523860|
McDonald’s is a multinational fast-food franchise that spans 100 countries around the world with more than 35,000 restaurants in total. In fact, in the UK alone, McDonald’s has around 1,300 restaurants with approximately 120,000 employees.
The company started in 1955 with one small burger restaurant and has since grown leaps and bounds, so much so that the company has a yearly revenue of around $21 billion.
As of the morning of 16 May, McDonald’s share price sat at $245.04.
Over the past year, McDonald’s has shown relatively stable prices. However, Russia’s invasion of Ukraine has changed this outlook.
When Russia declared war on Ukraine, many Western companies decided to cease operations in Russia amid waves of sanctions. McDonald’s followed suit, and as a result, its share prices fell from nearly $270 on 6 Jan to $222 on 10 March.
It’s no surprise that share prices took such a hit, as the Russian and Ukrainian markets account for 9% of the company’s total revenue.
This doesn’t look as though it will be a temporary measure either, as McDonald’s announced on 16 May that it will be pulling out of Russia permanently after 30 years of operations.
According to the Guardian, the company expects to record a non-cash charge as part of the exit in the region of $1.2 and $1.4 billion.
This announcement led share prices to drop from $245 on the market open to $241.66 just 30 minutes later. While the price has started climbing back up slowly after this initial dip, only time will tell if this decision will have any more of an impact.
McDonald’s shares are worth more now than they were pre-pandemic, even with the losses from the war.
McDonald’s could benefit amid the cost of living crisis
Markets have been quite unsteady and uncertain recently; the crisis in Ukraine and rising inflation the world over have pushed us into a bear market. There is even talk of an upcoming recession, which would negatively impact company shares even further.
Rising costs of living could also have a serious effect on restaurants, but McDonald’s may not be one. As people start to tighten their belts, some may be more likely to seek out cheaper fast food as a way to prevent unnecessary spending.
This is where McDonald’s can really shine – people may choose to eat at McDonald’s instead of more expensive restaurants.
In fact, you could even go as far as saying that McDonald’s is recession-proof, which can be further reinforced by the fact that, even during the financial crash in 2008, the company’s value increased. In fact, over the last five years, shares have increased in value by 70%.
This is why McDonald’s could be a good purchase – with even more market uncertainty on the horizon as the war in Ukraine rages on, McDonald’s may continue to be resilient.
Even though share prices are dropping due to their recent decision to sell their business in Russia, buying the shares when prices are lower could be a good way to maximise profits if prices increase again.
Even if shares do start to slide as the year goes on, McDonald’s pays dividends consistently at a yield rate of 2.2%. This could help negate the impact of any potential downturns in the market this coming year.
1. Choosing a broker
There are lots of different brokers and platforms out there you can use to invest. Each one will come with its own benefits, so you should ideally shop around for the one that best suits your needs.
For example, some broker accounts have different fee structures, meaning you may be better off choosing one with less commission on trading if you plan on investing in large amounts of shares.
Which investment account is the best?
As mentioned, there are a plethora of different brokers out there you can use to trade. This guide will only look at a few, but read my comprehensive guide on the best investment apps if you would like to find out more.
- Minimum deposit £50
- 0% commission when you buy and sell stocks
- One of the best investment apps in the UK for beginners and low-cost trading
eToro offers a wide selection of different company shares, exchange-traded funds (ETFs) and more.
If you aren’t as confident making investments or want to learn more, eToro may be ideal for you as they have a practice mode that allows you to “invest” with virtual money that gives you a feel for different markets.
They also have a social investing feature that allows you to copy the investments of other experienced investors.
As for fees, eToro is competetive. Opening an account is free, there are no management fees and there is a 0% commission on trading shares. There is, however, a withdrawal fee of $5 and a variable fee for converting currencies.
Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees.
- Minimum deposit £0
- Fees – £9.99 a month + £7.99 per trade
- Good investment app for DIY Investors
interactive investor is another great broker for investing in shares. While they do offer a decent selection of different instruments, there are typically more costs involved.
You will be required to pay a flat fee of £9.99 a month, though by paying this you have access to their regular trading service which has no trading fees. You are required to deposit at least £25 a month for your account to stay valid, however.
Capital at risk.
- Buy and sell shares at £11.95 per deal online, reducing to just £5.95
- Hargreaves Lansdown is a FTSE 100 company, trusted by over 1.5 million clients
Hargreaves Lansdown offers a trading account that gives you access to a wide variety of instruments.
Better yet, you can open an account with as little as £1. You should keep in mind, however, that they charge an annual fee of 0.45%.
This means that if you are looking to invest large amounts of money, it may be worth going for one of the other brokers, since the more you invest the more you will be charged.
As with any investment the value can go down as well as up. Past performance is no indicator of future performance. The tax treatment of ISAs depends on your individual circumstances and may be subject to change in the future.
2. Depositing money
When you’ve decided on your broker, you next need to deposit money to the account. Most platforms and brokers will allow you to do this online using a credit or debit card.
Some providers may charge for deposits, so you should double-check this first to make sure you can cover the costs.
You should ideally only deposit the amount of money you intend to invest. This is because you are unlikely to earn interest on any uninvested money with a share dealing account.
3. Researching investments
When you’ve deposited your money and are ready to invest, you should next do some research to find out which companies you want to invest in.
Of course, you aren’t expected to do deep analysis before you invest, but doing some research beforehand can go a long way in informing your decision.
For example, a company’s share price may look favourable, but what about the price-to-earnings ratio – that is, is the cost of the share reflective of the company’s underlying performance?
Similarly, a company’s dividend yield could also hold important information about how a business is performing.
Staying up to date with industry news can also be a great way to influence your decision when it comes to investing. For example, if a company is releasing a new product, they may experience a period of growth.
You may be able to find all this information and more on your chosen broker account, or you could use an external app, such as Yahoo Finance.
4. Buying your shares
Now you are finally ready to purchase your chosen shares. All it takes is searching the company name or ticker code on your chosen brokerage account, inputting the number of shares you wish to hold, and placing the order.
Depending on the country the company is based in, you will likely need to wait until the markets are open.
The UK markets, for example, are generally open Monday to Friday, 8 am to 4:30 pm GMT. Markets in the US, however, still operate Monday to Friday but are instead open from 2:30 pm to 9:00 pm GMT.
Long-term buy or short-term hold?
As part of buying your shares, you’ll need to decide on how these fit into your overall investment strategy, too.
Short-term investments are typically held for a year or less. Instead of trying to make a return from steady price increases over time or dividends, short-term investments aim to earn profit from volatility.
This means that the share price increases and decreases often, so investors aim to speculate and sell when the price is higher than when they bought the investment.
Long-term investments, however, are investments that are held for well over a year. Investing in this way is typically about targetting slow and steady gains over a period of years.
For example, airline stocks have a track record of slow and steady growth which could make them the ideal long-term hold, a history proved by their past performance. Of course, Covid has had an effect on airline stocks, which is why you should use your research to try and predict any eventuality.
Some investors may also hold certain shares because the companies have generous stocks paying dividends.
Make sure you choose the strategy that most suits your investment aims. You could even consider combining the two to give you the best of both worlds.
One of the hardest parts of investing is deciding which companies to purchase shares in. While doing your own research can give you a good idea of who may perform well, there are many different websites and services that offer tips on companies to keep an eye on and to inform your investment decisions.
Investing Reviews monthly share tips
Analysing data for companies can get fairly complicated, which is why my guide for monthly share tips could help you decide which companies to potentially invest in.
We analyse the data and news for you to save you the headache, then offer our share tips each month for you to consider.
Check out the latest list of the best stocks and shares to buy right here.
The Sunday papers
As well as our own share tips, it may be worth scanning the different Sunday papers to assess the different share tips that are given.
Even though the share tips may differ from one publication to another, assessing information from lots of different sources could give you a wider understanding of potentially good investments.
The Sunday Times
The Sunday Times is one publication that regularly offers share tips. As one of the biggest newspapers in the world, the Sunday Times has relationships with experienced analysts and market experts who can provide insight into potential investments.
For example, the Sunday Times’s Lucy Tobin is a vastly experienced personal finance writer. and now even edits the Evening Standard. She often contributes in-depth analysis on the latest stocks and shares for you to consider.
The Mail on Sunday
The Mail on Sunday offers share tips on a regular basis that are worth keeping an eye on. They also write articles that speculate on potential forecasts that are great for getting an idea of how experts think the markets will move.
While the Financial Times is typically more focused on financial news, they do offer share tips too. They have a section named “Investments” that as well as tips on investments, they also regularly provide current industry news that could give you an idea of companies who might be a good long term investment.
The Investor’s Chronicle is another great source for share tips. This publication is all about the world of investing, and offers a focused look at why their stock picks may potentially perform well.
On broker and platform websites
As well as my monthly share tips and those from the Sunday papers, you can also use some brokers and platform websites to discover some share tips.
As mentioned, eToro even has a social investing feature that allows you to see what experienced investors are doing. This may give you an idea of the companies to watch out for.
Of course, you shouldn’t just take the share tips from one source, you should scan lots of different sources and then use the information to decide which company would be best for you to invest in.
Share tips are not personal recommendations or advice and should never be treated as such.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.