Dubai stocks to buy
February 19, Updated: February 20, These are tough times to be an investor as stock markets shake the world by crashing one day then rebounding the next. Stock markets may look scary right now, but plenty of businesses will continue to shine even in the darkest times.
Experienced investors like to buy at times like these, because they can pick up shares in solid companies at a fat discount, then patiently wait for market storms to pass. If you buy with the intention of holding for the long term you could eventually find you have bagged a bargain. Over five, 10 or 20 years, stocks and shares should outperform cash. With many companies paying dividends worth between 3 and 5 per cent a year, you can also get a higher rate of income, which you can reinvest back into the stock to turbocharge growth.
If you are brave, or crazy, enough to buy individual stocks and shares, here are some top expert picks:.
Global sales rose 5 per cent over the last year, according to its fourth-quarter results, helped by the launch of all-day breakfasts. Another way to play emerging markets is to invest in household goods giants such as Reckitt Benckiser Group, Mr Beauchamp says.
You may not recognise the company name, but you almost certainly have several of its everyday brands in your kitchen and bathroom cupboards, such as Dettol, Harpic, Finish, Nurofen, Strepsils and Vanish.
How to invest Abu Dhabi Dubai stock share market
The stock currently yields 2. Lewis Grant, senior portfolio manager of the Hermes Global Equity Fund, says so-called "defensive" stocks can thrive amid continuing market volatility. The falling oil price may be hitting the Middle East, but it has put money into the pockets of western consumers, particularly the US, and this will boost sales at low-cost retail chains such as Dollar Tree and Dollar General.
Another defensive sector that tends to hold firm in difficult times is health care, according to Mr Grant, and a number of pharmaceutical and biotechnology firms boast strong balance sheets and healthy long-term prospects.
He picks out the US-based biotechnology firm Amgen and Swiss pharmaceutical company Roche. The financial expert particularly favours Roche. Utility companies also offer resilience during difficult times, as they generate a steady income stream from everyday services that most people still pay for even in a downturn, such as gas, electricity and water.
He tips American Water, the largest publicly traded water utility in the US, which provides regulated water services to 20 states. We view this company as a fantastic long-term opportunity with limited exposure to a market slowdown," Mr Grant explains. Michael Clark, portfolio manager of the Fidelity MoneyBuilder Dividend and Enhanced Income Fund, also picks out a utility company, UK-based Severn Trent.
He says regulated utility prices offer investors the security of a "visible" future income stream. The company specialises in running low-cost tracker funds and is now looking to expand in the US and other global markets. Stuart Mitchell, manager of the SWMC European Fund, names the mobile phone giant Orange as one of his favourite stocks, as he is impressed by the strength of its franchise.
These stocks have been hit hardest of all in the downturn as Chinese demand falls while supply stays high.
It would be a brave call to buy a mining company today given the meltdown in the sector during which Anglo American has shed about 70 per cent of its value over the past year, and BHP Billiton has fallen 50 per cent. Few would be willing to take a chance on oil companies either, but if the oil price does recover later this year as some analysts forecast, now could prove a great time for brave investors to buy.
The UK-listed oil major BP has fallen 25 per cent over the past year, but it could rally sharply if the oil price recovers. Helal Miah, an investment research analyst at Share. Mr Miah says plunging profits are hardly a surprise given the oil price collapse and BP could recover rapidly when oil does.
BP currently offers an eye-catching yield of nearly 8 per cent but management could be forced to cut the dividend if the oil price continues to stay low, which would also hit its share price. One commodity has shown promise during the recent volatility — gold. Russ Mould, investment director at the specialist pension advisers AJ Bell, says that rather than buying physical gold you could the invest in the stock of a gold miner such as Randgold Resources instead.
Randgold has mining operations in West and Central Africa and Mr Mould says it has been the best-performing stock on the FTSE over the past six months, with its share price up 38 per cent in that time.
The firm also posted record production of more than 1. Investors who bought at the top of the market are still nursing major losses. Buying individual companies is risky, even so-called defensive stocks, as you could suffer big loses if your stock pick flops or goes bust.
Only experienced investors who already have a well-balanced portfolio containing mutual funds, bonds, cash and property should chance their hard-earned money on direct equities.
Instead, look to hold for a longer period to allow you to overcome the kind of short-term volatility we are seeing today. Investment trusts, also called investment companies, are similar to mutual funds in that they invest in a spread of different companies to reduce the damage caused if one company fails. The twist is that they are also companies themselves, which are traded on the stock market like any other share. Here, Mr Anderson picks out three solid investment trusts that should give you a good spread of different stocks:.
This is a global growth trust designed to invest the wealth of the Rothschild family, which ordinary people can invest in as well. Ignore the name, this has very little to do with either Scotland or mortgages, Mr Anderson says.
Major holdings include the online retailer Amazon, Chinese search engine Baidu, social media site Facebook and electric vehicle designer Tesla Motors. This cautious, low-risk fund aims to deliver capital and income growth from shares, bonds, cash, gold and other instruments.
Edit Profile Sign Out. Harvey Jones February 19, Updated: Related Emerging markets are back, so should investors dive in today? Bold new market frontiers. Happy stocks that will bring investors joy. Time to kiss petrol cars goodbye? Factors to consider before taking the plunge on mining stocks.
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