If you are feeling positive about the long-term prospects of the UK housing market, then you may have turned your attention to Persimmon, a British house-building company with enough land to take a hike in volume, in order to help meet the commitment by all major political parties in the UK to further house-building.
My guide shows you how to buy Persimmon shares in the UK, as well as the risks and fees of investing in this stock.
Also consider: My best stocks and shares to buy now
- Choose a trading platform. If you’re unsure which one to choose, see my guide to the best trading platforms in the UK.
- Open an account. You will need your national insurance number, personal ID, and bank details.
- Enter payment details to make a deposit via a debit card or bank transfer.
- Search for the stock code on your trading platform. Search for “PSN”.
- Research Persimmon shares information. Your trading platform can show you the latest information for Persimmon.
- Now buy your Persimmon shares. Go ahead if your research shows that now is the time to buy Persimmon shares.
Persimmon Plc (PSN) share price
Below you can see Persimmon share price live, subject to stock exchange times and data update frequency.
There are a variety of ways to buy Persimmon shares in the UK and all of them start with a secure and reputable investment platform. Only once you’ve found a legit place to buy and sell can you go through the process. Here are the six steps you should follow to buy shares in Persimmon UK.
1. Choose a suitable platform
You can’t learn how to buy shares without using an online trading platform. You can read my guide to trading apps to help you choose a suitable one, but some of the things to consider when you’re buying stocks are:
The account fees and commission charges.
These will vary between trading platforms, so find the best conditions for your trading level and style. The general rule is to use brokers that charge the lowest fees for opening/holding an account. You also want the commission charges (i.e. the amount you pay per order) to be as low as possible. Beware of hidden fees, such as spreads and margins as this is often how platforms will make their money when offering commission-free trades. Additionally, check whether or not there are other fees related to transactions and inactivity. Some brokers charge you for not using the account after a certain period of inactivity. If you’re not an active trader or investor, this could be problematic, so find a broker that suits your preferences.
You can only buy Persimmon stock if it’s available.
So, you need to ensure the trading platform you’ve chosen offers Persimmon stock and a full range of options for investors and traders. Go to the broker’s homepage before you join and search for Persimmon or its ticker PSN.
Check the deposit and withdrawal limits
Do this before you register to ensure the platform’s limits align with your budget. Each platform has its own deposit limits and methods. Some of the most popular ways to deposit funds are Visa, MasterCard, bank transfer, Google Pay, and Apple Pay. Remember that you shouldn’t deposit more than you can afford and there may be minimum account balances to consider. A minimum balance means you not only need to make deposits over a certain threshold but keep your account in credit by a certain amount.
Tools and analytics are important when you’re learning how to buy Persimmon shares.
The latest Persimmon stock price is important to consider, but you also need access to historical price charts, analytics, and expert insights. Research shouldn’t be seen as a way of getting definite answers. Instead, it’s a starting point from which to consider the full potential of a security and whether or not it’s worth investing in.
2. Choose the right account
Not all accounts are the same. Investing in shares means you’re buying the underlying asset. If this is your preference, you can buy stock via a general investment account (GIA) or stocks and shares ISA. The former allows you to make investments without any annual limits. The latter shields your investments from income, capital gains, and, in some cases, stamp duty taxes but carries an annual investment limit.
If you prefer to speculate on fluctuations, rather than own the underlying asset, you can use a trading account. These accounts allow you to use products such as contracts for difference (CFDs) to take long or short positions. Therefore, you can speculate on Persimmon’s financial performance in two ways: investing or trading.
3. Make a deposit
Once you’ve found the right type of account, use our secure registration links to join. You’ll then have the ability to input your personal details, complete the Know Your Customer (KYC) checks, and upload copies of your ID to verify your identity.
Once you’re verified, go to the cashier page and choose a deposit method. We’re teaching you how to buy shares in a UK-listed company. Therefore, you don’t need to worry about completing international compliance documents. If you were buying US stock, for example, you’d need to complete a W8-BEN tax form before you make a deposit.
4. Decide how you’re going to invest
When investing by purchasing the underlying asset, investors sometimes have the option to buy fractional shares (a small percentage of one share) or single shares. In either case you’ll own the shares with the aim their value will increase.
You could also trade Persimmon stocks using CFDs. This strategy is flexible in the sense you can take long or short positions. Going long will return a profit when the Persimmon share price increases. Going short will return a profit when the Persimmon share price decreases.
The strategy you choose will depend on your personal preference and research. As well as asking how to buy shares, you should be asking whether it’s a good time to do it. This is where data comes in. Use price charts and technical analysis tools within a trading platform to decide your best course of action.
Every decision you make in the financial markets should be based on empirical facts. Certain amounts of experience and personal intuition are important. However, your own research is the key to unlocking a potentially profitable investment, regardless of the security you’re buying or selling.
Persimmon was founded in 1972 and is listed on the London Stock Exchange (LSE). It’s also part of the FTSE 100, which means it’s ranked among the largest 100 companies listed on the LSE. As such, there is plenty of data available on this company.
I suggest looking at Persimmon’s share price history (buy and sell prices) and dividend. Use these metrics as a starting point. From there, look at the latest quarterly reports. Add in some economic data then look at what financial analysts are saying. Ask these questions:
- What are the current analyst ratings?
- How does the current share price compare to historical trends and past performance data?
- Is the dividend per shareholder up or down?
- Are profits high or low?
Finally, make use of the news updates on InvestingReviews.co.uk and try the charting tools available on our recommended trading platforms. All of this information can help determine what the current state of Persimmon shares is and whether they have any potential.
There are never any guarantees in the financial markets. Indeed, future results may not reflect past performances. However, the more information you have, the more chance you have of making profitable decisions.
6. Place an order
When you’ve found a platform, created an account, made a deposit, and assessed some data, it’s time to place an order. You do this by searching for Persimmon (PSN) and choosing your order type.
You then decide what position you want to take and how many shares you want. Finally, input your order amount (i.e. cash amount) and hit the execute button. Once the brokerage is able to find a counterpart willing to trade at your desired price (i.e. someone who wants to sell Persimmon shares), the order is filled.
The average Persimmon share price in 2023 has been above 1,200 GBX with highs above 1,500 GBX. Based on the historical Persimmon share price, those values are above average.
Indeed, the Persimmon share price was 143.90 GBX on July 1, 1988. A period of relative stability was followed by a spike in 2003 before a share dip in 2008. Persimmon stock has been gradually increasing in value ever since, with 2023 offering some of the highest ever share prices.
The cost of buying shares may also be affected by the platform you use. That’s why it’s important to choose high-quality apps that offer the best conditions for retail customers. This means low fees and commission charges. You should also use trading sites that are regulated and offer a variety of extra features, including analytics.
Does Persimmon pay dividends?
Yes. Shareholders are paid quarterly dividends based on the current share price and their holdings. The Persimmon dividend amount per share between 2017 and 2022 was 110.00p. However, in Q1 2023, the dividend for Persimmon was 60.00p.
Based on the share price during these periods, the yield has been between 7.87% and 5.26%, with a top-end value of 12.43%. Is the Persimmon dividend yield good? Persimmon is part of the consumer goods sector, which has an average collective yield of 2.12%. Therefore, based on a yield of 12.43%, Persimmon’s shares are above average compared to companies in the same sector.
Is it a good time to buy stock in Persimmon?
Learning how to buy Persimmon shares is as much about timing as a general understanding of the company. There will be times when stocks have more potential than others. It’s also important to understand that no investment or trade is guaranteed to provide a positive return.
When you review the price history of Persimmon stock, you can start to make decisions about whether it’s a good time to execute an order.
Looking at the price history in conjunction with the company’s latest earnings report , market data, economic conditions, assets, and news headlines can help you determine the stock’s potential.
Persimmon announced at the start of 2023 that it expects to build 40% fewer houses in 2023 than previous years. Sales also slowed in the first eight weeks of 2023. Despite cutting its dividend, Persimmon’s yield has remained above its sector average. The Persimmon share price has also remained higher than it’s been historically.
However, I should reiterate that analyst ratings are snapshots in time and subject to change in line with market conditions. Therefore, you should carry out your own research in tandem with the opinions of financial experts to determine whether or not now is the right time to buy.
Market cap and net profits
Persimmon’s total revenue was £3.82 billion in 2022. I looked at how much profit Persimmon makes, based on its revenue. In 2022, it was £730 million before tax. This gave the company a net profit of approximately £516 million. The company’s market capitalisation was £4.27 billion.
The best way to buy shares in Persimmon is to use licensed and reputable trading apps. If the data suggests that shares could move to a higher price, investing in Persimmon might be a good idea. You could also take a long position using CFDs.
If, however, your research suggests that the price may fall, a short position may be advisable. Taking short positions is something day traders may want to do but it’s important to note short selling can be a higher-risk strategy.
Whichever position you take, be sure to only commit an amount of money you’re comfortable with. Additionally, consider all possible variables, and take full advantage of your chosen platform’s tools and analytics.
What’s Persimmon’s ESG track record?
ESG stands for environmental, social, and corporate governance. It’s a measure of how environmentally friendly a company’s business practices are, how engaged it is with social issues, and how ethically it operates. Board members need to take responsibility for ESG ratings, which is important to consider when you’re learning how to buy Persimmon shares.
Persimmon’s external ESG ratings
Sustainalytics has given Persimmon a low-risk ESG rating  with a score of 17.6. For reference, a rating between 10 and 20 is considered low risk. A score of 40+ means a company is considered a severe risk of breaking established ESG norms. Out of 87 companies rated within the homebuilder sector, Persimmon is ranked 21st.
In terms of individual scores:
- Environment risk score: 6.3
- Social risk score: 5.6
- Governance risk score: 4.7
Sustainalytics has also given Persimmon a score of 2 on its controversy level, which is classed as moderate. The industry average within the building sector is 1.7. So, by this metric, Persimmon’s ESG is slightly above the norm.
Persimmon’s internal sustainability rating
Looking at Persimmon’s own sustainability reports , it recycled 96% of its operations waste in 2022. It planted approximately 147,000 trees and delivered over 13,000 training days in 2022. Finally, all Persimmon homes in use will be net zero on carbon emissions by 2030.
Is Persimmon a good investment?
Are Persimmon shares listed on the London Stock Exchange (LSE)?
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.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future results. The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates and tax legislation may change in subsequent Finance Acts.