Investing
High-yielding FTSE 100 stocks remain ISA favourites
The Share Centre’s roundup of the ten most popular equities for ISA investors demonstrates that reliable dividends are a big draw.
Graham Spooner, investment research analyst at The Share Centre, explained: “Our most popular ISA stocks for this tax year show investors favouring well-known blue chip companies with the potential to provide an income. As interest rates remain low the search for high yield continues and FTSE 100 companies offer strong balance sheets with reliable dividends and steady dividends and steady dividend growth.”
Banks and utilities made an appearance in the most popular stocks and shares ISA purchases this tax year.
Spooner explained: “A contributing factor is that ISA investing is more popular for the older generation, with average ISA investors being 50 years old, so the defensive characteristics of these companies appeal to this demographic.
The Share Centre’s top three picks from their customers’ preferred stocks included utility provider National Grid, HSBC-“the more attractive option in the banking sector,” according to Spooner-and Royal Dutch Shell.
The Share Centre’s ten most popular equities in ISAs this tax year:
| Company | Dividend Yield | Share Centre View |
| GlaxoSmithKline | 4.9 per cent | Buy |
| BP | 4.7 per cent | Buy |
| Royal Dutch Shell | 4.8 per cent | Buy |
| Vodafone | 4.7 per cent | Hold |
| National Grid | 5.0 per cent | Buy |
| Tesco | 5.0 per cent | Hold |
| Centrica | 5.1 per cent | Hold |
| HSBC | 3.1 per cent | Buy |
| Aviva | 3.1 per cent | Buy |
| Lloyds | 0 per cent | Hold |
Current dividend yield source: Bloomberg