The 2022/23 ISA deadline is not far off now. As a result, investors all over the country are topping up their accounts and investing their money.
Here, I’m going to highlight the top five stocks purchased by Hargreaves Lansdown investors last week. These are some shares that investors have been buying ahead of the ISA deadline.
Barclays
The most bought stock on Hargreaves Lansdown last week was Barclays (LSE: BARC). It’s one of the UK’s largest bank shares.
I can see why investors are attracted to Barclays shares right now. As a result of the banking crisis in the US, its share price has fallen from around 190p to below 150p.
At that price, the stock appears to offer a lot of value as the price-to-earnings (P/E) ratio is just 4.5. Meanwhile, the dividend yield is now above 6%.
Now, this stock is not without its risks. Right now, there’s uncertainty in the global banking system.
However, I reckon buying the stock at current levels will probably pay off down the line.
It’s worth noting that in a research note published this morning, analysts at Berenberg wrote: “European banks are fundamentally resilient, exceptionally cheap and face limited persistent headwinds”.
They believe Barclays shares are ‘oversold’.
Legal & General
The second most bought stock last week was Legal & General. It’s a leading insurance and investment management company.
I like this trade from Hargreaves’ investors. This is another stock that has fallen due to the US banking crisis. And at current levels, it offers a massive 8%+ yield.
Of course, dividends are never guaranteed. If the firm’s profits were to take a hit, the payout could be reduced.
I think the dividend is probably secure in the near term, however.
Lloyds
Lloyds Bank was another popular share last week. It was the third most purchased stock on the platform.
Like Barclays, Lloyds shares look dirt-cheap right now (the P/E ratio is about six). They also sport an attractive yield (nearly 6%).
So, buying the shares now could pay off.
The big risk here is the UK economy. Lloyds is more domestically focused than a lot of other big banks. So, if economic conditions continue to weaken, its share price may fall further.
Aviva
In fourth place last week was insurer Aviva.
This appears to be another high-yield play. Currently, analysts expect Aviva to pay out dividends of 32.8p per share this year. At the current share price, that equates to a yield of a high 8%.
It’s worth pointing out that Aviva has a patchy track record when it comes to dividends. So, investors shouldn’t rely on this forecast.
Scottish Mortgage Investment Trust
Finally, the fifth most purchased stock on the platform was Scottish Mortgage Investment Trust.
Now, this is very different to the other four stocks listed above. The others are all value/dividend shares. By contrast, Scottish Mortgage is a higher-risk, growth-focused investment trust.
However, like the others, its share price has come down a lot recently. Over the last year, it has fallen about 35%.
After that kind of fall, I see an opportunity here. Eventually, sentiment towards smaller tech companies should improve. And when it does, the trust should rebound.
