Stock Purchase – IG Group Holdings

On Tuesday 7th October 2014, I bought 200 shares in FTSE 250 company IG Group Holdings. The share price at the time of purchase was 598.9p. The total cost with charges included was £1,215.74

IG Group’s dividend average over the last 5 years was 4.66%. Their dividend for this year was 4.7%

The dividend payment has increased every year since their inception in 2006. The dividend growth rate averaged over the last 5 years is 13.7%. The dividend payment increased over 21% from 2013 to 2014. 

Their average dividend cover is 1.62 over the last 5 years, and for 2014, the dividends were covered by 1.43

The companies profits have increased almost every year. Companies won’t increase revenue every year, but I want to see a very high percentage of progressive increases. 

IGG’s adjusted earnings per share have increased every year out of the last five. Yet more consistency from this company showing that it has a solid history of increasing revenue and profits. 

There were six broker forecasts for the company recently and the average targeted price was 669p per share. The lowest was 650p, and the highest was 695p.

I want to invest in companies from various sectors in the FTSE all share to increase diversification and spread the rish of my whole portfolio. This is the investment I’ve made in the Financial Services industry. 

IGG are the current market leader in the UK for spread betting and CFD-trading products. They are continuing to expand in its non-UK customer base and now has offices across 16 countries. They target new markets where they believe there is a sizeable long-term market for their business. 

They boast a handful of firsts to their name:

  • The worlds first spread betting company
  • First company to offer financial spread betting on shares
  • Pioneers on binary betting
  • First spread betting company to offer an iPhone-compatible trading platform. 

They aim to continue with their innovation to stand out from their competition. The world firsts help build a solid reputation for the company. 

There a lot of factors that lead me to feel positive about this company. I’m looking forward to seeing how they perform over the next 5+ years.

I bought these shares with the profit I made from my sale of Pearson PLC. Ultimately, I feel more positive with my £1,000+ being in IG Group for 5+ years over it being in Pearson. This is down to dividend payments and potential growth. I will report back on how this decision has worked out later down the line as this is the first time I’ve sold a chuck of my portfolio. I’m not going to review the share price of the two companies for at least a year, as anything less than a that is just stock market fluctuation. 


What are your thoughts on decision? What do you think of IG Group? Have you invested in them? 

0 Comments

  • I Will Be Done By 50

    Reply Reply 10th October 2014

    Hi FF40,

    Nice buy. I think it is also wise to go over the FTSE250 because I believe opportunities also lie over there. Sometimes we get caught with the FTSE100 and we miss OUT.

    Wish you luck.

  • Huw Davies

    Reply Reply 13th October 2014

    Hi IWBDB50,

    I agree, there are plenty of solid dividend growth stocks in the FTSE 250. I feel more confident in this purchase than I have in many of my previous buys.

    Thank you for stopping by!
    Huw

  • DivHut

    Reply Reply 13th October 2014

    Thanks for sharing your recent buy with us. I have never heard of this company before which is why I like to read many of the blogs from outside the U.S. as you get introduced to other companies you may never have known.

  • Huw Davies

    Reply Reply 17th October 2014

    Hi DivHut,

    No problem at all. I like to read overseas Blogs for a similar reason, I've noticed people using comparable strategies but focusing on different companies.

    All the best
    Huw

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