DH puts money in an ISA for each of us each year and has set up a Stocks and Shares ISA for me. Apparently I just have to pick a few companies whose shares will go in it. I don't know where to start!
I have been told that most shares are overvalued at the moment and may fall so a high dividend may be a good idea but this is a long term investment so if it falls it could recover too.
I have Googled FTSE 100 High Dividend and names I recognise are National Grid, Centrica, BAE, Unilever, Sage Group, Rio Tinto, Anglo-American and several drug companies and supermarkets. Has anyone got any suggestions please? What should I look for?
Picking individual shares is always going to be high risk while you don't have enough to be diversified. While those in FTSE should be relatively stable, you're still likely to have a volatile portfolio.
Have you considered funds? This could be OEICs, such as the Invesco Perpetual High Income fund (why do you want high income rather than growth?), or if you want something stock market tradable, then there are a number of investment trusts that could be suitable.
As a novice it might be worth investing in funds rather than shares as they are not as risky. On the other hand the rewards could be less. If you do want to buy individual shares then I would look at the recommended reading section on valueshare.co.uk
I have a stocks and shares isa and I spent time researching penny stocks on the alternative investment market (aim). Not many can be invested in an isa from aim but it's worth finding those that can and doing a bit of research. Plus, the aim market is at a low (unlike the other markets) so it's a good time to find a few gems. I have only been using my isa for 2 years, and in that time with some good research I've gained £5,310 on a 11,200 investment. I needed my 11,000 out recently but left the £5000 in to carry on investing.
Have a look at LSE (London south east) to do some very basic research, and then when you see a company you like the look of, go to their official website to find out more about them. Be careful in aim though, do your research as it's quite a volatile market, but there is money to be made in the volatility.
Don't buy until you've really studied though. It's a great hobby if you have some spare time and is quite an addictive pastime, but be careful if that's where you choose to invest. You could choose some 'safer' shares from the ftse and then throw in a wildcard from the aim market if you don't want too much risk.