M&G (LSE:MNG) is one of the FTSE 100‘s hottest dividend stocks. Since it was spun out of Prudential in 2019, it’s raised shareholder payouts every year. It speaks to the company’s incredible resilience and robust cash flows (more on both later).

Yet that’s not all. Following its London stock market listing seven years ago, dividend yields have averaged an impressive 6.3%. To put that in context, the long-term average for the broader Footsie sits way back at 3%-4%.

Past performance doesn’t guarantee juicy dividends further down the line though. So the question is, can M&G shares continue delivering FTSE 100-beating shareholder payouts?

Bright outlook

I’m confident they can. As its record shows, management’s determined to deliver on its pledge to “maintain a progressive and sustainable dividend policy“. And it has the financial means to make this a possibility.

As mentioned, M&G enjoys a steady flow of cash through the fees it charges on its asset management and pensions services. What’s more, its operations don’t require vast amounts of capital, meaning a high proportion of earnings are converted into cash.

This in turn gives the business rock-solid financial foundations for its dividend policy. At 210% as of December last year, its Solvency II capital ratio was the highest in the sector, and more than double what regulators require.

But here’s the thing. M&G takes a sensible approach to dividends, allowing it to pay a sustainable reward over time. In 2025 its cash-flow-to-payout ratio was 63%. This prudent strategy’s meant the firm’s been delivering large and growing dividends, even as earnings have remained volatile since the start of the decade.

What’s the catch?

Having said that, it’s important to mention the huge competitive pressures M&G faces across its markets. Long-term, the threat from market rivals such as Aviva, Legal & General and Standard Life to revenues and margins will remain a key risk.

However, I’m encouraged by the FTSE stock’s strong record of execution and powerful brand. As demographic changes and increasing demand for financial planning drive market growth, I’m confident profits and dividends will rise over time.

So what are City analysts expecting for the next few years? According to the 11 that rate M&G shares, dividends will rise to:

• 20.95p per share this year.
• 21.6p in 2027.
• 22.34p in 2028.

The result is a huge dividend yield of 6.4% for 2026, moving to 6.8% for next year and 6.8% for 2028. These figures beat the 6.3% yield M&G shares have averaged since 2019

I don’t own this FTSE 100 stock today. But I’m considering adding it to my ISA when I next have cash to invest.

Should you invest £5,000 in M&g Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if M&g Plc made the list?

Royston Wild owns shares in Aviva, Legal & General & Prudential.

The post How has M&G become one of the FTSE 100’s hottest dividend stocks? 5 reasons..! appeared first on The Twelfth Magpie.

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Have £10,000 to buy dividend stocks with a Stocks and Shares ISA? Investors today have a great chance to turn a sum like this into a large and sustainable passive income. There are 17 stocks on the FTSE 100 alone with dividend yields of 5% or more.

With a £10k lump sum, I think investing in three different shares is a strategy to consider. This could deliver a healthy second income even if one of these companies fails to pay the dividends analysts are forecasting.

Which shares to consider? Well, Aviva (LSE:AV.) is one I hold in my portfolio, and whose forward yield is an enormous 6.5%. Alongside this FTSE 100 dividend hero, I think student accommodation provider Unite Group and iShares US Equity High Income Active ETF are worth considering. Their dividend yields are 7.4% and 8.7% respectively.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

How much passive income?

With a £10,000 lump sum invested equally across them, an investor could buy 522 Aviva shares, 643 Unite shares, and 766 shares of iShares US Equity High Income Active ETF. With an average annual dividend yield of 7.5%, these three would throw off a £752 passive income in 2026 alone, assuming broker forecasts are accurate.

Diversification is important to reduce the chances of dividend volatility, as I say. And exchange-traded funds (ETFs) like our iShares US-focused fund help investors achieve this simply and cheaply.

Any fund that’s focused on one region carries more geographic risk than ones with a global approach. However, this product’s well diversified in other ways, which helps offset its regional limitations. It holds positions in 355 companies in industries as varied as IT, financial services, healthcare, and consumer goods. This ETF holds cash and US government bonds, too.

Two top dividend stocks

Unite’s status as a real estate investment trust (REIT) also gives it brilliant dividend credentials. At least 90% of annual rental earnings must be paid to shareholders in exchange for tax breaks. This limits the influence management can have on the dividends it pays.

So what’s the downside? Well profits and dividends can still underwhelm if its tenants fail to pay the rent. However, with rents usually paid upfront or paid by parents or student loans, such risks are limited, with the steady income Unite receives used to pay reliable dividends.

As I say, Aviva’s a dividend share I already hold in my portfolio. Dividends have risen during 11 of the past 12 years. And over the past decade, yields have averaged 8.3%, which trounces the FTSE long-term average of 3% to 4%.

A 7.4% income opportunity?

There are a number of factors that make Aviva a reliable dividend share. Huge restructuring since the mid-2010s has made it more capital efficient and rebuilt the balance sheet. Today its Solvency II capital ratio is a huge 180%, and it’s targeting more than £7bn of cash remittances in 2026-2018.

This supports the company’s 6.5% dividend yield for 2026, and the 6.9% and 7.4% it carries for 2027 and 2028 respectively. Could rising competition impact dividend growth further out? It’s possible. Even so, I think Aviva’s proven business model and growing markets should help it remain one of the UK’s best dividend shares.

Should you invest £5,000 in Aviva Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Aviva Plc made the list?

Royston Wild owns shares in Aviva.

The post A £10,000 ISA buys 1,931 shares in these 6.5%+ yielding dividend stocks! appeared first on The Twelfth Magpie.

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Stocks and Shares ISAs have proven excellent ways to create wealth down the years. The data is in to prove it. So why do so many more Britons prefer to leave their money locked up in low-yield Cash ISAs?

A total of £69.5bn was saved in these cash-based products in the 2023/2024 tax year, latest data shows. That’s more than double the £31.1bn invested in the stocks-based equivalent.

But here’s the thing: total holdings in stocks ISAs is £511bn, compared to £360bn in the Cash ISA. Why? Over time, investment in the stock market delivers significantly greater returns than simply saving.

Crunching the numbers

Over the past decade, Stocks and Shares ISA users have enjoyed an average annual return of 9.6%. That’s according to Moneyfacts data. By comparison, the Cash ISA’s return sits way back at 1.2%.

Past performance isn’t always a reliable guide to the future. But if these trends continue, a cash saver with £19,999 on account will make just £22,547 by 2036.

How would this stack up compared to the shares ISA? The difference is enormous, with this product delivering a £52,032 total return.

Sprinkle in some regular investments over the period and the gap becomes even wider. This is because each contribution made in a Stocks and Shares ISA has the opportunity to compound at that much higher rate.

If someone added an extra £500 a month on top of their initial £19,000i investment, they’d have:

• £152,141 after 10 years in a Stocks and Shares ISA.
• Or £86,262 over the same period in a Cash ISA.

So what’s the catch?

If this is the case, why don’t more of us in the UK invest in the stock market? The problem is perception compared to other countries such as the US, Canada and Australia, and especially when it comes to risk.

With a Cash ISA, it’s not possible to lose money, unless in the unlikely event your account provider goes bust. Cash products also protect individuals from market volatility. Stocks ISAs don’t offer either of those things.

Yet. as that Moneyfacts data shows, over the long term, volatility has a chance to even out and deliver stunning returns. HSBC (LSE:HSBA) is one example of the huge profits that can be made with a patient approach.

A 10.7% opportunity?

There have been some ups and downs for the bank over the last decade. For instance, HSBC’s share price — like the broader FTSE 100 — fell sharply when Covid-19 hit in 2020. Yet through a combination of capital gains and dividends, it’s provided an average annual return of 10.7%.

The reason is chiefly the bank’s rising focus on fast-growing Asian markets. It’s a strategy that’s tipped to keep delivering, even though market competition from digital banks is a growing threat. Asia Pacific’s retail banking sector is expected to swell 6%-8% a year on average between now and the mid-2030s. And areas including wealth management, where HSBC is doubling down, are tipped to rise even more strongly.

There are plenty of top stocks for investors like me to consider in an ISA and this is just one of them. It’s why I’ll never leave money stagnating in a poor-returning cash account.

Should you invest £5,000 in HSBC Holdings right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if HSBC Holdings made the list?

Royston Wild owns shares in HSBC.

The post How much might £19,999 in a Stocks & Shares ISA be worth by 2036? appeared first on The Twelfth Magpie.

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Investing in shares remains one of the most effective ways to create a second income. With an average annual return of 9%, stock markets deliver the reliable long-term wealth boost other asset classes just can’t match.

But what’s the best way to get started? Nowadays, Stocks and Shares ISA investors have tens of thousands of global shares, funds and investment trusts to choose from.

There’s no right answer to this question, unfortunately. Each of us have different financial goals, investing styles and degrees of risk tolerance. However, what history does show us is that the most successful long-term investors take the time and effort to diversify their portfolios.

Here’s how individuals can spread their investments and eventually target a rich retirement income with FTSE 100 shares.

Spreading out

Diversification is one of the most powerful weapons investors can use. Better still, it doesn’t cost a penny to reduce risks that could take a bite out of your returns.

Diversification is the only free lunch in investing.

Harry M Markowitz, economist and creator of the modern portfolio theory

Diversifying your portfolio has a number of advantages. These include:

• Trimming risk, as better-performing shares can help offset losses.
• Providing smoother long-term returns, as different investments often react differently to economic events.
• Allowing exposure to a diverse range of opportunities across regions, industries and sectors.

Tracker funds that follow particular stock indexes often illustrate diversification benefits perfectly. Take the HSBC S&P 500 and iShares Core FTSE 100 exchange-traded funds (ETFs), for instance. They hold shares in a plethora of multinational shares spanning different industries.

Over 10 years, these funds have delivered average annual returns of 15.4% and 10% respectively. Investors can achieve a well-diversified portfolio by buying ETFs, investment trusts, or individual shares. I use a mix of all three.

A £20,623 income

So let’s consider what a diversified portfolio could turn a £20,000 Stocks and Shares ISA into by retirement. If an investor can achieve an average annual return of 9% over 30 years, they’d have a healthy nest egg of £294,612.

If this was then invested in 7%-yielding FTSE 100 dividend shares, this would generate a £20,623 passive income.

Diversification would again play an important role in delivering a retirement income. Dividends are never guaranteed, and a diversified portfolio can reduce reliance on a small handful of companies for passive income.

FTSE 100 dividend star

Standard Life‘s (LSE:SDLF) one top share to consider for a retirement portfolio. The firm’s forward dividend yield is 6.9%, fractionally below our target of 7%. And it has a great track record of dividend growth, with annual payouts rising every year for the last decade. It’s also never cut dividends.

What makes the FTSE 100 company such a powerful dividend provider? Standard Life’s operations are capital light, meaning it doesn’t need huge sums to run and grow the business. As a result, it has an excellent record of generating cash it uses to pay dividends. In 2025, it generated a whopping £423m in excess cash after dividends and other cash commitments.

Competition’s rising across its product lines, which poses an obvious threat. But I’m still expecting Standard Life to keep paying large and growing dividends as its markets rapidly expand.

Should you invest £5,000 in Rolls Royce right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Rolls Royce made the list?

Royston Wild owns shares in HSBC S&P 500 ETF.

The post £20k in an ISA? How FTSE 100 shares could turn that into a £20,623 second income appeared first on The Twelfth Magpie.

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Passive income is cash that steadily rolls in with little-to-no ongoing effort. There’s plenty of ways to aim for this, but for me the best way to target it is by buying dividend shares.

Buy-to-let? With high upfront costs, falling tax breaks and day-to-day management, you can forget it. Savings accounts yield too little in interest, even in recent years after Bank of England rate hikes.

Other more modern schemes — like uploading YouTube content, creating online courses, or operating a fleet of vending machines — require far too much effort for my liking.

With dozens of UK dividend shares offering consistent sky-high yields, I feel there’s really no reason to burden myself with extra effort or poor returns.

10 of the best

If I invested a £20,000 Stocks and Shares ISA in 6%-yielding dividend stocks, I’d enjoy a healthy second income of £1,200 a year. There are 10 stocks on the FTSE 100 alone that offer forward yields at or above this level, namely:

• Legal & General (LSE:LGEN) (7.7%).
• Londonmetric Property (6.9%).
• Standard Life (6.8%).
• Land Securities (6.7%).
• Barratt Redrow (6.5%).
• Aberdeen (6.2%).
• M&G (6.2%).
• Aviva (6.1%).
• Investec (6.1%).
• Imperial Brands (6%).

This list is packed with shares that enjoy rising profits and robust cash flows. They also have boards who are committed to paying large and growing dividends over time. The result? A recipe for substantial passive income not just today but over the long haul.

The average dividend yield on these five FTSE 100 shares is 6.5%. Now let’s assume they pay the dividends analysts are expecting this year, and also raise annual payouts 2% over the next 25 years. If dividends are reinvested, the passive income they deliver will gradually rise to:

Dividend boom

By Year 25, the dividends a £20,000 ISA provides will be more than seven times higher than that delivered in Year 1, at almost £9,500.

That’s a nice extra bit of cash to have in your pocket. But here’s the thing. With the added firepower of extra ISA contributions, the amount of passive income your investments throw off can be truly life changing.

Let’s say an investor puts another £300 into those 10 FTSE 100 dividend share a month. By the time they reach Year 25, they’ll have generated a £29,061 annual passive income.

A 7.5% income opportunity

Top yielder Legal & General is a dividend share I hold along with Aviva. Why? It’s one of the FTSE 100’s greatest dividend stories. The company’s raised cash rewards every year since 2012, stripping out 2020 when the pandemic prompted it to freeze dividends. Furthermore, over the past decade, yields on Legal & General shares have averaged a stunning 7.5%.

Past performance isn’t always a reliable guide to the future. And rising competition across the FTSE firm’s markets could hamper dividends over the next 10 years.

However, I’m optimistic Legal & General will remain a formidable passive income provider. Its cash flows remain rock solid, and its Solvency II capital ratio a brilliant 210%. I expect earnings and dividends to grow strongly over time as demographic trends supercharge growth across its markets.

Should you invest £5,000 in Legal & General Group Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Legal & General Group Plc made the list?

Royston Wild owns shares in Legal & General and Aviva.

The post How much would I need to invest in these FTSE 100 dividend gems for a £29,061 ISA passive income? appeared first on The Twelfth Magpie.

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If you’re worried by the volatility of SpaceX shares, you might want to consider buying FTSE 100 growth shares instead. I haven’t bought the US stock for my own portfolio. I don’t intend to, and certainly not when it’s trading at anywhere near today’s share price.

SpaceX was valued at $1.78trn at its IPO earlier this month. Today, it’s worth $2.13trn, which is roughly three-quarters the value of the entire FTSE. For a company that’s yet to turn a profit — and isn’t expected to do so until 2028 at the earliest — you may see why I’m not tempted.

And why should I be? Sure, returns on SpaceX shares could rocket (no pun intended) if business at its Starlink satellite network surges. But there’s plenty of shares back here on Earth that are already delivering spectacular shareholder profits.

Take Games Workshop (LSE:GAW) and Sage (LSE:SGE). I hold both these FTSE 100 stocks in my Self-Invested Personal Pension (SIPP). And adding more of their shares to my portfolio is a far more attractive scenario for me than buying SpaceX shares.

Here’s why.

A 4,271% rise

Both SpaceX and Games Workshop shares appeal to the ‘inner nerd’ in me. The first speaks to my interest in space travel and watching sci-fi movies set in distant galaxies. The other taps into my love of building and painting miniatures and fantasy storytelling.

Yet my admiration for Games Workshop goes beyond the models, games and books its manufactures. I’m also impressed by the exceptional share price gains and dividends I’ve enjoyed down the years.

Over the last decade, the Warhammer maker’s share price has risen a staggering 4,271%. And I’m confident its shares can keep marching higher as profits soar, even as rising competition from other games manufacturers poses a danger.

Core revenues are expected to have risen at least 11% in the 12 months to May, latest financials showed. This is driven by soaring global interest in fantasy gaming. Games Workshop has a stranglehold on this booming industry.

A dirt cheap FTSE share

While Games Workshop continues to head higher, Sage shares have fallen sharply more recently. They’ve dropped on fears that the emergence of AI could damage subscriptions at the software company.

It’s a danger, sure. But it’s one I feel is overstated. So with a price-to-earnings (P/E) ratio of 18 times, I think this FTSE 100 tech titan’s worth serious consideration as a ‘dip’ Buy. Its trading well below the 10-year average of 31-32.

I’m sure plenty of companies will switch their accounting, payrolls and HR activities to AI models. But will they do this in large enough numbers to disrupt Sage’s model?

I’m not so sure. Its services are cheap, and will firms really want to farm out mission-critical activities to AI models? Especially when Sage is integrating AI into its own products? Latest financials showed organic sales up 10% in the six months to March.

Sage’s share price is up 35% over the last decade. I think it could pick up momentum thanks to its own AI investments, and as global businesses increasingly digitalise their operations.

Should you invest £5,000 in Games Workshop Group Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Games Workshop Group Plc made the list?

Royston Wild owns shares in Games Workshop and Sage.

The post Forget SpaceX shares! I’d rather buy these FTSE 100 growth heroes appeared first on The Twelfth Magpie.

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FTSE 100 share 3i Group (LSE:III) has endured a truly miserable time recently. The reason? Weaker-than-expected sales at Action, a European retailer and key plank of its investment portfolio.

At £24.80 per share, 3i’s share price has slumped 37% over the past 12 months. The investment trust holds positions in more than 50 companies. But with value retail specialist Action accounting for three-quarters of total holdings, it’s perhaps no surprise the trust has tumbled in value.

Or is it? I’ve argued that the market has overreacted to recent news, making 3i a top bargain to consider. And today (Thursday, 25 June) it’s surged back after releasing fresh trading numbers.

So what’s happened?

10% price jump

You might not be shocked to hear news of improved performance at Action has driven the trust skywards. 3i’s share price leapt 10% on news that

like-for-like [LFL] sales growth was 3.3% year to date as at the end of week 25 (21 June 2026).

This was better than the 2% rise analysts had been tipping. To cap things off, 3i added that “Action is set for a good quarter of profit growth and had a cash balance of €699 million as at 21 June 2026 after the payment of a €450 million dividend to all shareholders in May.”

The retailer remains set to open 105 new stores in 2026, the trust added.

Elsewhere, 3i said the remainder of its private equity portfolio “continues to demonstrate good momentum in line with our expectations.”

Growing momentum

Conditions at Action will continue to drive the performance of 3i’s share price. And here’s the thing: a sharp sales uptick in recent weeks is a welcome omen for the rest of the year.

As the boffins at RBC Capital note,

Action has already reported like-for-like sales +2.4% for the first 19 weeks, so we think that this implies LFL for the most recent six weeks are up c.+6%.

The retailer has targeted full-year LFL sales growth of 4%-5%, so trading over the last month-and-a-half is encouraging. Can it continue, though? Tough market conditions have endured in key regions, particularly France and Germany.

This could remain a theme given the cost-of-living crisis in Action’s markets, though a sustained fall in oil prices could see consumers splash out more willingly.

Are 3i shares a buy?

Make no mistake: 3i is a high-quality business with a strong record of generating shareholder returns. These have averaged 18.1% a year over the last decade.

Yet following its share price issues of the last year, 3i’s share price sits at a 24.2% discount to the trust’s net asset value (NAV). For me, this represents an attractive dip-buying opportunity.

So what are the dangers? Action operates in a highly competitive industry, and its expansion in the US creates significant execution risks. But given the retailer’s long-term opportunities — not to mention the strength of the rest of 3i’s portfolio — I think it’s an excellent FTSE share to consider.

Should you invest £5,000 in 3i Group Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if 3i Group Plc made the list?

Royston Wild does not hold any positions in the companies mentioned.

The post Down 37% but fighting back! Is this FTSE 100 share now set for a stunning recovery? appeared first on The Twelfth Magpie.

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The Stocks and Shares ISA is now in the crosshairs of the government. Why? The government is looking to close possible loopholes following cuts to the Cash ISA allowance.

The move means savers and investors may need to alter their wealth-building strategies. But what are these changes to the stocks ISA? And what should ISA users like me do now?

Potted history

Last year, the government announced it was slashing the amount people can save each year in a Cash ISA. From next April, savers will only be able to put £12,000 in one of these accounts each tax year. That’s down significantly from the current allowance of £20,000.

The reason? According to the Treasury,

the government wants to see more people benefit from the higher returns and long-term financial resilience that investing can provide.

But here’s the thing. With many Stocks and Shares ISAs paying interest on cash holdings, people could save up to £20,000 a year in one of these instead and enjoy the same tax-free returns as the Cash ISA.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

What are the changes?

To stop this from happening, HMRC now says a 22% tax will be applied to interest on cash holdings within both Stocks and Shares ISAs and Innovative Finance ISAs.

This change will come into effect from April 2027 when the Cash ISA allowance cut comes in. Yet that’s not all. Other alterations include:

• Preventing people depositing £20,000 in a stocks ISA and then transferring this to a Cash ISA.
• Stopping Stocks and Shares ISA users from investing 100% of their allowance in money market funds (which have similar risk and reward characteristics to savings accounts).

How will these affect me?

I didn’t like those reductions to the Cash ISA announced last year. For me, it’s better to use the classic carrot instead of the stick to get people investing. But changes to the stocks ISA to close any loopholes makes sense before the savings allowance gets cut.

The thing is, none of these amendments will change my own personal investing strategy in the slightest. Why? I invest roughly 80% of my leftover cash each month in the stock market, so the new £12,000 Cash ISA allowance is more than enough for me. I suspect it’s the same for most people who follow the same strategy.

This way, I stand a better chance of building a large retirement fund with the help of shares, while also holding some money in cash to mitigate risk. Why wouldn’t I? Share investing delivers a brilliant average annual return of 9% over the long term. For this return, I think it’s a strategy everyone should consider, though returns like this are never guaranteed.

Building wealth the easy way?

I’m targeting big returns by buying a blend of individual shares and exchange-traded funds (ETFs). One I hold is the iShares Core MSCI Europe ETF (LSE:SMEA), which spreads my money across almost 400 different companies.

This fund is flying right now as global investors pile into undervalued European shares. ETFs like these are simple and cost-effective ways to diversify and target big returns, whether you’re a novice investor or experienced shareholder.

Over 10 years, this European iShares fund has delivered a strong average annual return of 9%. Can it continue? By harnessing the wealth-building power of stock markets, I think it can, though returns could disappoint during times of market volatility.

Should you invest £5,000 in iShares III Public - iShares Msci Europe Ucits ETF Eur (Acc) right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if iShares III Public - iShares Msci Europe Ucits ETF Eur (Acc) made the list?

Royston Wild owns shares in iShares Core MSCI Europe ETF.

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It’s official: after weeks of speculation, UK Prime Minister Keir Starmer has formally resigned, creating uncertainty for real estate investment trusts (REITs). The direct and indirect impacts could be far reaching, affecting everything from interest rates to government policy on particular property sectors.

The smart money is on new Labour MP Andy Burnham becoming Starmer’s replacement, potentially as soon as mid-July. If this happens, there are several top REITs I think could receive a profits boost. Primary Health Properties (LSE:PHP) is one in particular I believe may benefit.

How so?

First things first…

But let’s take a step back for a moment. Let me explain why I already hold this FTSE 250 trust in own portfolio.

Primary Health Properties owns and operates hundreds of doctor surgeries, community medical centres, and other healthcare-related assets. These provide a steady stream of income the trust has translated into a large and dependable flow of dividends.

Shareholder payouts have risen every year since 1997. Analysts expect a 30th consecutive yearly hike in 2026, meaning a huge 8% yield.

As a keen dividend investor myself, I was drawn to Primary Health by its ultra-defensive operations. But it’s not just that healthcare focus that’s made it a dividend star down the years. Under REIT rules, it must pay at least 90% of annual rental profits out in dividends. That’s in exchange for juicy tax breaks.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

The Burnham factor

So how could a Burnham premiership boost Primary Health? There are several ways the company could benefit. First might come in the form of higher public services spending, and with it better investment in local healthcare facilities.

Critically, Burnham advocates greater emphasis on funding sickness prevention over hospital care. This approach could see resources shifted towards properties like community GP surgeries and diagnostic centres, the kind that Primary Health specialises in.

Finally, Burnham’s commitment to deeper regional devolution might see local authorities take charge of healthcare budgets for their areas. The result? Councils may sign long-term leases with REITs like this to lower social care costs, further boosting Primary Health’s revenue and cash flow visibility. Catching illnesses quickly and keeping people healthy is crucial in helping local authorities minimise the financial burden of long-term residential care.

A long-term dividend opportunity?

It’s expected that Andy Burnham will hike taxes to fund future healthcare investment. But given the massive weight of public debt in the UK, greater NHS investment isn’t guaranteed by any means. If the economy continues to struggle funding may well be cut, hitting Primary Health.

But on balance, I think the long-term outlook for this FTSE 250 REIT is robust. Government policy is already favourable towards community-based healthcare centres to reduce hospital patient lists. I can only see this improving if Burnham becomes Britain’s next Prime Minister.

Should you invest £5,000 in Primary Health Properties Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Primary Health Properties Plc made the list?

Royston Wild owns shares in Primary Health Properties.

The post 8% dividend yield! This REIT could be a BIG winner after Keir Starmer’s resignation appeared first on The Twelfth Magpie.

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Babcock International (LSE:BAB) has become the worst-performing FTSE 100 stock on Monday (22 June). Down 7%, it’s slumped in value after its latest trading statement spooked investors.

The thing is, results for the 12 months to March were largely what Babcock flagged last month. Revenues grew 8% organically to £5.2bn, while underlying operating profit tanked 19% to £293.3m.

Profits fell after Babcock took a £140m charge on a contract to build five Type 31 frigates for the Royal Navy. The FTSE 100 firm said that

although the contract contained certain escalation clauses, it provided limited protection from the macroeconomic changes of recent years relating to Brexit, Covid, raw material prices, and UK labour shortages, which have significantly increased our costs.

Without this charge, Babcock’s underlying profits would have risen 19% last year, to £433m. Underlying operating margin would also have been higher at 8.2%, up from 7.5% in fiscal 2025 and exceeding the company’s 8% target. As it stands, the Type 31 disruption pulled margins down to 5.7%.

What about looking ahead?

There were no red flags on future guidance that may have frightened investors, either. Babcock International’s contract backlog was £9.8bn as of March, down from £10.4bn at the same point in 2025. But that was £200m higher than what it announced in May.

The company also said guidance for financial 2027 was unchanged, and that around 70% of expected revenues under contract as of 1 April, also as previously advised.

Finally, Babcock kept its forecasts beyond this year unaltered, stating that

we reaffirm our medium-term guidance of average mid-single digit organic revenue growth, underlying operating margin of at least 9% and average underlying operating cash conversion of at least 80%.

So what’s gone wrong today? For me, it seems investors remain concerned about execution risks and the possibility of additional cost overruns. As you can see, Babcock’s been stung badly by these problems in recent years.

The thing is…

However, project issues like these are a constant threat for any defence company. A combination of lengthy contracts, changing client requirements, and technical complexity sometimes lead to setbacks.

On the whole, Babcock International has a strong record of execution across all its divisions. The question is, then, has the market overreacted by sharply selling this FTSE 100 stock? I think a case can be made, especially when one considers how cheap Babcock shares are.

At 976.2p, the defence giant trades on a forward price-to-earnings (P/E) ratio of 16.5 times. To put that in context, the broader European sector average is roughly 27.

Furthermore, Babcock shares carry a price-to-earnings growth (PEG) ratio of 0.6. Conventional wisdom suggests any sub-1 reading implies a share trading below value.

So should investors consider buying this FTSE 100 stock today? I think so. Babcock’s share price is up 235% over the last five years. It may experience some fresh setbacks. But on balance, I expect it to continue climbing as European countries continue raising defence spending.

Should you invest £5,000 in Babcock International Group Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Babcock International Group Plc made the list?

Royston Wild does not hold any positions in the companies mentioned.

The post Why has this FTSE 100 defence stock collapsed 7% today? appeared first on The Twelfth Magpie.

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