Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guides
Guidance and tools
Shares
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks Stock plan guidance
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Sunday share tips: Phoenix Group, AB Dynamics
(Sharecast News) - The Financial Mail on Sunday's Midas column recommended readers 'buy' shares of Phoenix Group, highlighting how it appeared to be on a path to strong growth and higher dividends.
In particular, the tipster highlighted the measures being adopted by the company to see staff through the cost of living crisis.
The company's chief executive officer, Andy Briggs, believes that treating staff well improves customer services, in turn strengthening the company, allowing it to reward its shareholders.
Furthermore, the company does not manage the £270bn of assets of its customers directly, instead outsourcing the service specialist investment managers with instructions to focus on predictable returns for customers and shareholders.
It also hedges its business against inflation.
The company is anticipating finishing 2022 with £1.4bn of cash and a similar outcome is pencilled in for 2023 and 2024.
As well, the firm is intent on further expansion, both organically and through acquisitions which should entail continued strong cash generation and rising dividends.
"Phoenix is a rarity in today's markets - a company that is making strides, expressing confidence about the future and appears set on a path of strong and growing dividends.
"At £6.61, the shares are a buy. "
The Sunday Times's Lucy Tobin recommended AB Dynamics to readers, the AIM-listed car safety engineer.
In order to be certified, in 2015 a car needed to pass 84 tests, a number that looks set to rise to 420 by 2023 and according to Peel Hunt analyst Henry Carver may rise to "perhaps a multiple of 600" by 2030, as motor cars evolve into self-driving computers on wheels.
Indeed, sales for the six months to February jumped 39%, although net cash fell 16%.
Yet the shares have fallen by 30% over the past 12 months due to fears over the recession's impact on car sales.
City analysts nevertheless believe the share are "cheap" with Peel Hunt having a £28 target price for the shares.
In parallel, the company has company has been diversifying into industrial equipment and defence while regulations worldwide are increasing.
"AB has a strong balance sheet with a net cash standing of £28 million providing scope for acquisitions and investment," Tobin said.
"Its trajectory may be bumpy, but AB Dynamics looks worthy of the ride. Buy."
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity, Equity & Inclusion | Diversity, Equity & Inclusion Reports | Doing Business with Fidelity | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Staying secure | Statutory and Regulatory disclosures | Whistleblowing programme
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.
