Here’s some bad news for millions of British savers and investors. Chancellor Rachel Reeves has announced a new tax on ‘tax-free’ Stocks and Shares ISAs. What is this tax and will you be affected? Read on to find out how to legally dodge it!

ISAs attacked again

The UK national debt stands at £2.9trn and we borrowed around £129bn in 2025/26, with debt interest amounting to £110bn of this sum. That’s why there’s nothing new in fiddling with the ISA rules. Successive governments have been moving the goalposts since ISAs — Individual Savings Accounts — replaced PEPs and TESSAs in April 1999 (an event I remember well).

Even so, the government will introduce a new tax on cash interest earned inside Stocks and Shares ISAs. The rate will be 22%, in a clear attempt to prevent savers hoarding cash inside share-based ISAs. This new tax will take effect from next tax year (2027/28).

Also, from April 2027, savers aged under 65 can put a maximum of £12,000 a year (currently £20,000) into Cash ISAs. These new rules are aimed at pushing cash savers into investing more into shares.

A low-risk tax dodge

Happily, my family portfolio will not pay this new tax, as we invest in money-market funds (MMFs) instead of cash. However, MMFs are not entirely risk-free — unlike cash deposits, which are protected by the Financial Services Compensation Scheme (FSCS).

What are MMFs? They are funds — or shares in exchange-traded funds (ETFs) — that own rolling portfolios of short-term, high-quality debts and cash-like instruments. These include ultra-safe UK government bonds, plus certificates of deposit issued by strong banks, commercial paper issued by quality companies, and repurchase agreements (repos).

Typically, UK MMFs benchmark themselves against SONIA, the Sterling Overnight Index Average used as a baseline for many sterling debts. Right now, MMFs offer after-fees yields of 3.5% to 4% a year, versus the Bank of England base rate of 3.75% a year.

Top MMFs (and their ETF-based cousins) offer daily buying/selling, low charges, and risk ratings of one — on a scale of one (lowest risk) to seven (highest risk). MMFs maintain stable, steadily rising net asset values (NAVs) and have minimal investment risk. Typical yearly charges range from 0.05% to 0.2% — the lower, the better, usually.

My own favourite

Again, MMFs are not savings accounts and are not covered by the FSCS guarantee. Yet, my family keeps a hefty sum invested in one: the Vanguard Sterling Short-Term Money Market Fund (VASTMGA).

This is an accumulation fund, so it doesn’t pay out monthly interest. Instead, coupons are reinvested to lift the fund’s NAV. The fund’s £2.7bn current portfolio includes IOUs from 27 quality borrowers and charges 0.12% a year. In the year to end-May, it returned 3.89%. From March 2024 to end-May, it returned 10.26%.

Within UK pensions and Stocks and Shares ISAs, MMF distributions are tax-free. However, Rachel Reeves already plans a new rule to prevent investors from holding 100% of a Stocks and Shares ISA in MMFs. Yet more fiddling!

Finally, we at The Twelfth Magpie firmly believe that investing in the shares of great companies is one of the best routes to build wealth. While savings and MMFs are fine for short-term returns, I know no-one who got rich by sitting on cash. As one Russian proverb wisely states, “Those who take no risks drink no Champagne”!

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?

Cliff D’Arcy has an economic interest in the Vanguard Sterling Short-Term Money Market Fund.

The post How to avoid the new 22% tax on your Stocks and Shares ISAs! appeared first on The Twelfth Magpie.

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SpaceX is without doubt the highest-profile growth stock to go public in a very long time (probably ever). And one UK investment company that has made a fortune from this is Baillie Gifford, the manager of Scottish Mortgage.

The Edinburgh-based company is today sitting on many billions of profit after first investing in the rocket pioneer back in 2018. This follows previous smash-hit returns from Tesla and Nvidia.

Needless to say, it’s worth keeping an eye on what Baillie Gifford has been buying lately. That’s why I was intrigued to see the asset manager recently loading up on a growth stock that’s little talked about today.

High switching costs

The share in question is Samsara (NYSE:IOT). According to Baillie Gifford’s latest 13F regulatory filing, it scooped up some 9.86m shares in Q1. This made the UK investor the largest institutional shareholder in Samsara.

So, what does the company do? Samsara is an Internet of Things company helping businesses manage their physical operations through a cloud-based platform that collects data from connected vehicles, cameras, trailers and equipment.

This enables vehicle fleet managers to track fuel consumption, optimise routes, and schedule maintenance (or not). Samsara’s AI-powered software can also detect risky driving like mobile phone use, tailgating, or signs of driver fatigue.

In turn, improved driver behaviour is reducing liability claims for customers. This tangible return on investment is helping the firm attract notable blue-chips, including car rental giant Hertz and Sainsbury’s (monitoring its delivery vans).

Now, what I like here is that there are high switching costs because the physical hardware (sensors and cameras) is blended with cloud software. Both are woven into customers’ day-to-day operations, including some of America’s largest waste management companies.  

In this sense, Samsara reminds me of Axon Enterprise, another founder-led growth firm that uses hardware as a gateway to capture further software offerings over time.

Like Axon, Samsara strikes me as having a highly defensible business model based around a hardware-software ecosystem and big datasets. This is crucial in today’s age of rapidly advancing AI. 

We have a unique defensible data advantage. By instrumenting physical assets with IoT hardware, we’ve created a large, growing proprietary data asset that cannot be easily replicated…The AI transition from bits to atoms is under way. Samsara is at the centre of it.
CFO Dominic Phillips.

How fast is it growing?

The company has been — and is set to continue — growing quickly. In Q1, annual recurring revenue reached almost $2bn, a 30% year-on-year increase in constant currency.

Crucially, Samsara has been profitable for three straight quarters, and is guiding for a profitable full year.

Meanwhile, its new Ground Intelligence product leverages trillions of data points from vehicles to flag potholes, which account for roughly $3bn in US vehicle damages every year. So the customer base is widening.

Another under-the-radar gem?

In my eyes, the biggest dampener here is a forward price-to-earnings ratio of 46. If growth slows unexpectedly, the stock could nosedive, especially as Samsara doesn’t have a long track record of profitability (which adds risk).

Weighting things up though, I think Samsara has all the hallmarks of a quality growth stock. It could indeed be a hidden gem in the physical AI space.

Down 30% since December, I think it’s a dip-buying opportunity worth digging into at $31 per share.

Should you invest £5,000 in Samsara 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 Samsara made the list?

Ben McPoland owns shares in Axon Enterprise and Nvidia.

The post After making billions on SpaceX, Scottish Mortgage manager Baillie Gifford is piling into a little-known growth stock appeared first on The Twelfth Magpie.

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I’ve suffered a world of pain at the hands of one dividend stock in my SIPP. Its name? Taylor Wimpey (LSE: TW).

I bought it three years ago, bewitched by its ultra-high yield which has touched 10% at times. I bought a string of dividend-paying blue-chips at the same time, and they’ve done jolly well. Taylor Wimpey is the exception. It’s done jolly badly. But has it finally turned a corner?

Time to buy this FTSE 250 stock?

Investing typically moves in cycles. In the downswing, even the best run company finds life tough. Taylor Wimpey isn’t the only house builder to suffer. The sector has taken a beating across the board.

The pain began in 2016, when house builder stocks plunged 40% after the Brexit vote triggered fears of a property crash. The crash didn’t come, but the shares didn’t recover.

It was the same story in the pandemic. No crash, but no share price recovery. That was followed by the Ukraine war and cost-of-living crisis, which made buyers feel poor. Profits were squeezed at the other end too, as inflation drove up the cost of labour and materials, and employer’s National Insurance hikes further squeezed margins.

The decision to scrap the government-backed Help to Buy scheme in 2023 was another massive blow, as it hit demand from young buyers. Then came the Grenfall tragedy. Taylor Wimpey had to set aside a massive £435m specifically for cladding and fire safety remediation. We can see the impact of all this on its profits.

• 2025 – £146.5m
• 2024 – £320.3m
• 2023 – £473.8m
• 2022 – £827.9m
• 2021 – £679.6m

I started the year in an optimistic mood, anticipating a string of interest rate cuts, leading to cheaper mortgages as a result. War in Iran sank that. The Taylor Wimpey share price is down 27% year-to-date and a numbing 54% over five years. At today’s price of 78p, it’s trading at 2013 levels.

Is the income worth the risk?

But isn’t it darkest before the dawn? It might just be. Following reports of a Middle East peace deal, Taylor Wimpey shares have stirred a little. They’re up 5% in the last week. They’re still cheap, with a trailing price-to-earnings ratio of 9.95. Don’t get too excited. They’ve showed signs of life before. It never lasted.

Ignore websites showing a dividend yield of 12.1%, that’s the trailing payout. Shareholder payouts were cut by 1.25% in 2024, and 19.45% last year. Hopefully, that’s as bad as it gets but we’ll see. The forward yield is still decent at 7.7%.

I won’t buy more Taylor Wimpey shares myself. I’ve pumped enough money into this stock. But I think it’s worth considering for value investors willing to take on a bit of risk. That dividend is highly tempting. Now imagine getting share price growth on top. Just don’t expect it to happen overnight.

Should you invest £5,000 in Taylor Wimpey 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 Taylor Wimpey Plc made the list?

Harvey Jones owns shares in Taylor Wimpey.

The post This 7.7% yielding dividend stock trades at a 13-year low – time to consider buying? appeared first on The Twelfth Magpie.

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We’ve now (17 June) had three full days of trading in SpaceX — Space Exploration Technologies (NASDAQ:SPCX) — shares. And given that the stock’s changing hands for 49.5% more than the IPO price, valuing the company at a cool $2.66trn, I think it’s fair to say that the listing’s been a huge success.

But what does this tell us about stock market valuations? Let’s see.

Reaching new heights

The first thing to note is that the valuation rule book (if there were such a thing) doesn’t apply here!

Why?

Well, a look at SpaceX’s 2025 numbers reveals that it isn’t profitable, and that it’s valued at an astonishing 142 times revenue.

Apply this to, for example, Rolls-Royce Holdings (LSE:RR.) and the UK company would be worth 24 times more than it is today!

It’s a similar story when it comes to their balance sheets.

At 31 March 2026, SpaceX had an accounting value of $34.5bn, giving it a price-to-book ratio of 77. If it was treated the same, Rolls-Royce’s shares would be changing hands for 82% more (£25.37).

But I don’t think we should be surprised by this. Elon Musk’s businesses are treated differently to all others. Just look at Tesla. Today, it’s valued at 364 times historic earnings. Rolls-Royce’s multiple is 47.

What does this tell us?

Of course, we are comparing companies in different sectors here. Also, valuations should really be an assessment of future potential. Judgement is, therefore, required.

And in my opinion, Rolls-Royce is a stock to consider for the long-term because of its small modular reactor (SMR) programme and its intention to return to the narrowbody aircraft market.

These are potentially huge opportunites that could transform the scale of its operations. Data centres are also helping its existing power systems business grow rapidly.

However, as with any investment, there are risks. Its SMRs might not be commercially viable. Also, its price-to-earnings ratio implies (by historical standards) that its shares are expensive. A sharp correction can’t be ruled out if the group’s growth trajectory stalls.

For now though, all of its business units are doing well. Indeed, analysts are expecting its earnings per share to rise by 75% over the next three years:

• 2025 (actual) – 29.6p
• 2026 – 37.8p
• 2027 – 44.1p
• 2028 – 51.8p

On the other hand…

But as much as I like Rolls-Royce, I have to admit that it doesn’t have the “largest actionable total addressable market in human history”, as claimed by SpaceX. Nor does it have Elon Musk as a shareholder.

However, at the moment, only Starlink is profitable. During Q1 2026, it added 1.4m new subscribers. But its average revenue per user fell significantly, which suggests it’s facing some stiff competition.

My view

Given SpaceX’s astronomical valuation and heavy losses — as well as my risk-averse nature — it’s not the sort of company I usually invest in. But I have.

In my defence, I only have a small shareholding. If everything goes horribly wrong, it won’t affect me too much. On the other hand, if SpaceX can live up to all the hype, who knows where it will be by the end of the decade?

For those who are comfortable investing in a company with a less than 10% chance of success (Musk’s own assessment), I think it could be one to consider.

Should you invest £5,000 in Rolls-Royce 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 Rolls-Royce Plc made the list?

James Beard owns shares in Rolls-Royce Holdings plc and Space Exploration Technologies Corporation.

The post If Rolls-Royce shares were valued the same as SpaceX stock, here’s how much one would be worth… appeared first on The Twelfth Magpie.

More reading

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Rolls-Royce (LSE:RR) shares are back on the move higher, having popped 13% in the past month. Even though some were sceptical earlier this year (myself included) that the multi-year rally would keep going, clearly positive sentiment continues to prevail. But if we fast-forward to the end of 2027, the picture could look very different.

The positive vision

In the best-case scenario, I think the stock could match the 48% gain over the past year again through to the end of next year. This would put the share price just above 1,900p. Yet the continuation of momentum wouldn’t necessarily come from the same factors that have driven the stock of late.

The biggest reason for optimism I see is the company’s civil aerospace business. Rolls-Royce does not simply sell aircraft engines but rather it operates a long-term service model where airlines pay based on engine usage.

As global air travel continues to recover, more flying hours mean more valuable maintenance revenue. If passenger demand remains resilient, this could help earnings to keep increasing at the same pace as the past few years. In the last full-year results, the civil aerospace division hit an operating margin of 20.5%, so it’s clearly a profitable area.

There is also potential excitement from Rolls-Royce’s defence and power systems divisions. Rising geopolitical tensions have prompted many governments to increase defence spending, as we’re seeing in the UK at the moment. Meanwhile, interest in small modular reactors and energy solutions provides the firm with exposure to long-term themes in energy security. If even part of these opportunities develop as hoped, the shares could have another strong year.

Tempering expectations

On the other hand, after a powerful share price recovery, Rolls-Royce is no longer the deeply undervalued turnaround play it once was. Investors may have already factored in much of the improvement, meaning the company could struggle to impress going forward, even if financial results are strong.

With a price-to-earnings ratio of 44.26, it’s almost three times as expensive as the FTSE 100 average ratio. Ultimately, this could see the share price tread water or even come lower in the coming year to provide a fairer valuation.

The company also remains exposed to the global economy. As we’ve seen from the conflict in the Middle East, airlines are vulnerable right now due to weaker consumer demand and higher fuel costs. If these tensions keep going into 2027, the prolonged slowdown in travel could directly affect Rolls-Royce’s cash flow.

In this scenario, although I don’t see the share price collapsing, I do think it could consolidate around the current price just above 1,300p. Without any positive news to provide a catalyst for a rally, and with the high existing valuation, the stock could just bob along.

The bottom line

When I put it all together, I think the reality is somewhere between the two outcomes. I see it unlikely the pressure on the airline space will continue, but I struggle to see the defence and power systems growing enough to support huge outperformance. On that basis, I think a middle ground between the two estimates is a reasonable assumption for the share price in the coming period, potentially moving to 1,600p. But I could be wrong, of course.

Even though I think there are better opportunities elsewhere, investors could still consider adding this stock to their portfolio.

Should you invest £5,000 in Rolls-Royce 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 Rolls-Royce Plc made the list?

Jon Smith has no positions in the shares mentioned

The post Here’s how much I think Rolls-Royce shares will be worth at the end of next year appeared first on The Twelfth Magpie.

More reading

• After huge new nuclear deals, are Rolls-Royce’s sub-£15 shares set to power higher?
• Here’s how much I think Rolls-Royce shares will be worth by the end of 2027
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• Is now the perfect time to buy Rolls-Royce, Babcock and BAE System shares?
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Buying a quality FTSE 100 stock when it’s fallen on hard times can produce excellent results. Just ask investors who bought Next during the pandemic crash in early 2020 (up 240% since), or Scottish Mortgage in mid-2023 (up 145%).

By any definition, Sage (LSE:SGE) is a high-quality Footsie stock. Barring the pandemic, it has consistently put up double-digit earnings growth.

Sage was at it again in May when it reported a 16% rise in underlying earnings per share (EPS) for the six months to 31 March. Revenue was up 11% to £1.36bn and there was profit margin expansion.

Yet the stock’s down 33% since January 2025 over fears that AI might disrupt its business. But what if these fears are completely misplaced?

Nick Train, manager of Finsbury Growth & Income Trust, reckons they are. He argues there’s a “once-in-a-decade opportunity to access exceptional growth assets at fundamentally the wrong price“.

Tellingly, Train has Sage as Finsbury’s joint-third top position. So is there a once-in-a-decade opportunity to snap up Sage shares on the cheap? Let’s discuss.

Positioned to win

As a quick reminder, Sage provides software that helps small- and medium-sized businesses manage their mission-critical finance, payroll, and HR operations. As the tech firm points out, these are areas “where accuracy and compliance are non-negotiable“.

Therefore, in my opinion, it’s very unlikely customers will be leaving en masse for a general large language model or external AI agents. Especially when Sage is already embedding AI deeply into their daily workflows.

In an agentic world, AI depends on trusted systems of record like Sage to reason and act, making our role more critical, not less…We’re scaling these capabilities fast, with AI-powered features now available to over 500,000 customers across the group, helping finance teams accelerate cash flows, close the books faster, and confidently turn insight into action.

CEO Steve Hare.

In H1, underlying annualised recurring revenue rose 11% to £2.73bn, with growth across all geographic regions. Meanwhile, the renewal rate by value was 102%, which reflected “higher sales to existing customers, including the growing adoption of AI-powered features”.

What we have here then is a company that’s clearly benefitting from the launch of new AI tools and services. Not only that, but the firm’s using AI itself to improve productivity across the business.

Sage expects operating margins to trend upwards over time. And beyond AI, the UK’s Making Tax Digital is another tailwind.

Once-in-a-decade chance?

In my eyes, the biggest near-term risk here isn’t AI but economic weakness. If things deteriorate, especially in North America (Sage’s largest market by far), growth could slow quicker than expected.

On the other hand, the stock looks dirt cheap today, at just 15 times next year’s forecast earnings. That’s very low for a high-margin software firm still growing at 9%-15% a year.

On top of this, March’s share buyback programme of £300m is underway, taking the total announced in the first half to £600m. These buybacks are earnings accretive.

Finally, there’s a very well-supported forward dividend yield of 2.8%.

For the record, I bought Sage shares earlier this year. But after the strong update in May, I’m considering buying more as I believe there’s a once-in-a-decade opportunity here. I think investors could do the same.

Should you invest £5,000 in Sage 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 Sage Group Plc made the list?

Ben McPoland owns shares of Sage and Scottish Mortgage.

The post Down 33%, is there a once-in-a-decade chance to buy this quality FTSE 100 stock? appeared first on The Twelfth Magpie.

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A £3,000 monthly income — £36,000 a year — would require a SIPP worth roughly £900,000, based on a 4% withdrawal rule.

At first glance, that can feel like a daunting target.

But the more important question is not just the size of the pot, but how an investor actually gets there — and what kind of long-term investing behaviour makes that outcome realistic.

Because in practice, a SIPP is not built in one step. It’s built through years of contributions, reinvested returns, and the compounding effect of holding the right kinds of assets over time.

So, the more useful question is not just how much is needed, but what kind of investing behaviour is required to get there.

Investor behaviour

Building a SIPP capable of generating a £3,000 monthly retirement income is less about short-term investment skill, and more about long-term financial behaviour during working life.

The key driver is not just returns, but consistent contributions over decades, especially when rising income often brings higher lifestyle spending.

Opening a SIPP is the easy part. The challenge lies in funding it steadily through career and salary changes, while balancing competing priorities such as mortgages and family costs.

These allocation decisions matter as much as market performance. Regular investing through different market cycles builds resilience. Missed years of contributions can also have a disproportionate impact on the final outcome.

Ultimately, this behaviour determines whether a SIPP reaches the level needed to support meaningful retirement income.

Repeatable demand

One stock that I believe possesses the right kind of qualities for a long-term SIPP strategy is Reckitt (LSE: RKT).

What stands out is not just its global footprint, but the way its growth is increasingly being driven by repeatable consumer behaviour.

A key structural shift is emerging in global consumption. For the first time, emerging markets now contain more households with $25,000+ disposable income than developed markets. That matters because it expands the addressable base for the company’s “power brands” in a way that is gradual, persistent, and largely behaviour-driven.

Long-term engine growth

Rather than relying on a single growth engine, the company is executing across multiple layers.

In emerging markets, the focus is on expanding penetration in established categories. At the same time it’s building entirely new ones as consumption habits evolve.

In developed markets, the emphasis shifts towards premiumisation, where consumers trade up within trusted brands such as Finish and Nurofen.

What links these strategies together is consistency of demand. Whether it’s everyday hygiene products or health-related purchases, Reckitt’s portfolio sits in categories where repeat behaviour dominates. That is what ultimately supports long-term cash generation.

There are, of course, risks. Consumer sentiment in Europe remains weak, and execution in a highly competitive environment will need to be carefully managed, particularly around pricing and market share defence. Emerging markets expansion also depends on sustained distribution and execution strength.

Even so, the underlying investment case is straightforward. This is not a business dependent on cyclical timing or short bursts of demand, but one built on steady category growth, brand loyalty, and incremental global adoption.

For long-term SIPP investors, that consistency of demand is what ultimately underpins sustainable dividend income over time.

Should you invest £5,000 in Reckitt Benckiser 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 Reckitt Benckiser Group Plc made the list?

Andrew Mackie does not hold any positions in the companies mentioned.

The post How much would you need in a SIPP to replace a £3,000 monthly salary? appeared first on The Twelfth Magpie.

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UK shares have been on quite a tear over the last 12 months, with the FTSE 100 breaking through the 10,000 point mark and hitting fresh all‑time highs multiple times. Yet despite the headline strength, not every stock has joined the party.

Two of the biggest laggards are housebuilders Persimmon (LSE:PSN) and Vistry Group (LSE:VTY), which are down roughly 16.4% and 55.6% over the same period. Persimmon even started to stage a comeback in early 2026 before tumbling again in March.

So, what’s going on? Could these UK shares be gearing up for a stellar comeback, or are they value traps?

Why these builders are hurting

Both businesses have been battling the same brutal backdrop:

1. Higher mortgage rates.
2. Wobbly buyer confidence.
3. Political uncertainty.

Despite what the share price suggests, Persimmon has actually been delivering some decent numbers.

Full‑year 2025 revenue jumped to about £3.8bn, driven by a 12% rise in completions to 11,905 homes and a 4% increase in average selling prices. Profits beat market expectations, and early 2026 sales rates and forward orders are ahead of last year.

The snag? Higher financing costs, a big step-up in land spending, and concerns that margins are still a shadow of what they were a decade ago have all kept sentiment in check.

Vistry has its own issues: 2025 adjusted profit before tax edged up to around £269m, but revenue slipped 4%, and completions fell 9% as the market conditions remained tough. In fact, management has warned that 2026 margins will be lower on the back of targeting price cuts to spark higher interest from home buyers.

That profit warning saw the shares slump. And with Vistry shares now trading close to a 52-week low, it’s clear investor confidence has taken a hit.

But are these all just short-term problems?

Could a rebound be brewing?

Persimmon’s latest guidance points to a 2026 completions range of 12,000–12,500 alongside further profit progress. Although this is dependent on what happens with the Iran conflict and its impact on interest rates, as well as inflation.

Nevertheless, forward sales are up, build cost inflation currently looks more stable, and there’s still a structural shortage of housing in the UK, creating a powerful long-term tailwind.

Vistry’s story is more about strategy. It’s pivoting hard towards partnerships and affordable housing, where it works with housing associations and the public sector on long-term schemes. That model typically offers better visibility and less cyclicality than pure private sales.

The 2025 results showed margins improving in the second half, net debt falling, and a record £4.5bn forward order book as of March 2026 with a big chunk of 2026 units already sold. As such, management expects revenue, volumes, and profit to grow this year, even if margins dip in the short term while incentives do their job.

Are these UK shares worth buying?

Personally, I think both of these housebuilders are fascinating options for patient investors.

Persimmon looks like a quality cyclical opportunity – a strong brand, hefty land bank, and improving sales, that’s currently being held back by interest rates and buyer confidence.

Vistry feels more like a higher‑risk, higher‑reward turnaround, with its partnerships strategy and battered share price offering more upside if management executes well.

However, for me, neither is a slam‑dunk today. So for now, they’re staying on my watchlist.

Should you invest £5,000 in Persimmon 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 Persimmon Plc made the list?

Zaven Boyrazian does not hold any positions in the companies mentioned.

The post Down as much as 55.6%, experts expect a massive rebound from these UK shares appeared first on The Twelfth Magpie.

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Rolls-Royce (LSE: RR.) shares have turned £4,160 — or just £80 saved per week — into more than £48,000 in the past five years. That’s a gain of more than 1,115% and ranks among the best FTSE 100 recovery stories in recent memory.

If you managed to spot the opportunity in June 2021, when the share price was sitting at just 107.3p, you’d be sitting on a tidy little profit right now.

But beyond the extraordinary growth since, what’s actually driving the stock higher? And could there be more to come for investors sitting on the sideline today? 

How does the maths break down?

Five years ago, the shares were trading at 107.3p, during one of the most turbulent periods in the company’s long history. As I write on Wednesday morning, the stock is trading at 1,253.8p and up nearly 5% year to date.

Here’s a quick breakdown of how the maths works out for an investor who bought shares five years ago and still holds those same shares today:

• Starting investment: £4,160

• Starting share price (4 June 2021): 107.3p
• Shares purchased: 3,877
• Current share price (3 June 2026): 1,253.8p
• Current investment value: £48,610
• Total estimated gain: 1,068% or £44,450

If you had put that same £4,160 in a cash savings account at a 4% annual rate, it would be worth just over £5,000 today.

That difference shows the potential of buying high-quality stocks at the right price, and backing them in for the long term. The big question is what really drove such a dramatic turnaround? 

From near-collapse to FTSE 100 giant

The company develops and delivers power and propulsion systems across civil aerospace, defence, and power systems. With a market cap of approximately £107bn, today it’s a true giant of the Footsie.

The transformation has been extraordinary under CEO Tufan Erginbilgiç has been impressive. He launched an aggressive cost reduction programme, boosted margins, and re-focused the company’s strategy. Those initiatives, combined with strong civil flight hours and surging defence and energy spending, have helped boost the stock in recent years.

Is the best already behind it?

I don’t currently hold shares in the company, but I’m actively considering whether now might be the right moment to add them to my portfolio. I personally think that in an increasingly uncertain investment and geopolitcal environment, Rolls-Royce could be just what my portfolio needs.

With a price-to-earnings (P/E) ratio just shy of 19, it doesn’t feel overvalued to me right now. The 0.7% dividend yield is modest, so I think investors really need to believe in the the growth story from here.

That all sounds great, but what about the risks involved?

Risks to consider

There are some real risks to the stock that are worth highlighting for long-term investors. Civil aerospace revenues are still tied to engine flying hours and the ongoing Middle East conflict could be a real swing factor here.

The business has confirmed full-year guidance remains unchanged despite the conflict, but there is still some element of uncertainty there. Supply chain risks are always front of mind in the defence sector, and I think the company’s push into new power markets carries some execution risk as a more recent addition.

The company’s half-year results release is on 30 July, which I’ll be watching closely. Management’s view of the world and latest growth expectations could be the key factor that determines whether I see this is stock as a good buy in 2026.

Should you invest £5,000 in Rolls-Royce 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 Rolls-Royce Plc made the list?

Ken Hall does not hold any positions in the companies mentioned.

The post How much just £4,160 invested in Rolls-Royce shares 5 years ago is worth now appeared first on The Twelfth Magpie.

More reading

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The State Pension means the world to millions, but it’s not enough. It pays a maximum of £12,547.60 a year, but anybody who tries to survive on that income alone will struggle. So what’s the alternative?

One answer is to save under your own steam, and the Stocks and Shares ISA is a brilliant way to do it. Every UK adult can invest up to £20,000 a year, and take all of their capital gains and dividend income free for life. Some may like to combine it with the lesser-known Self-Invested Personal Pension (SIPP).

So how big should my ISA be?

Let’s say an ISA investor wanted to boost their retirement prospects by earning another £12,547 a year on top of their State Pension. That would lift their total income from those two sources to £25,094. That’s a bit more like it.

How much capital they’d need to generate that depends on the yield from their ISA:

• At 4% they’d need £313,675.
• At 5% they’d need £250,940.
• At 6% they’d need £209,117.

A popular way to generate that kind of income is to build a spread of high-yielding FTSE 100 shares. Today, the highest yield on the entire blue-chip index comes courtesy of insurer and asset manager Legal & General Group (LSE: LGEN). It’s currently a stunning 8.08%.

Somebody who wanted to generate £12,547 a year of dividends from this stock alone only needs to invest £155,285. But I wouldn’t suggest doing that.

Investing in shares can be risky, particularly if you buy individual stocks. But you can minimise that risk by investing in a spread of different shares. I’d aim for at least a dozen, ideally more.

Is this FTSE 100 income stock for me?

Legal & General might be an interesting place to start, given the income. But every stock comes with risks attached. This stock comes with a brilliant income, but the share price has struggled.

It’s up just 6% in the last year and has fallen slightly over five years. While dividends will compensate for that, at some point investors will want to get growth on top. Can Legal & General deliver?

It operates in a competitive sector, where FTSE 100 rivals like Aviva are battling for the same business. Profits have been bumpy lately. They climbed 6% to £1.62bn in full-year 2025. That’s OK, but slightly lower than expected. A broader worry is that a stock market crash could hit fee income. Legal & General has £1.2trn under investment.

Investing is cyclical, and at some point I think Legal & General shares will kick on. While we wait, the board plans to reward loyal shareholders by paying them a total of £5bn between 2025 and 2027, through both dividends and share buybacks.

I think Legal & General’s worth considering for income seekers, but investors should also balance it with stocks that have stronger growth prospects too. I can see plenty of exciting opportunities on the FTSE 100 right now.

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?

Harvey Jones owns shares in Legal & General Group. 

The post How much would you need in an ISA to match the new State Pension and get another £12,547 a year? appeared first on The Twelfth Magpie.

More reading

• How much would I need in a Stocks and Shares ISA to target £19,036 a year in second income?
• Here’s why I bought this 7.6%-yielding FTSE 100 dividend stock instead of saving in a Cash ISA
• How much would you need in a Stocks and Shares ISA to match the State Pension?
• Here’s a quick and easy way to start earning passive income this summer with a spare £1,000
• How much would I need to invest in these FTSE 100 dividend gems for a £29,061 ISA passive income?