Identifying secure high-performance stocks in South Africa can be confusing, especially for would-be investors with little or no experience.
Fortunately, there are a number of trusted sites that provide useful introductions and information regarding how to buy shares in South Africa.
Current indices and experienced investors are the best resources for helping potential investors to make profitable decisions.
Here are the top-rated stocks currently being suggested by those who know the markets best.
1. British American Tobacco
BTA is listed with both the London Stock Exchange and the JSE, where it is one of the largest stocks in terms of market capitalization. Generating consistent income and growth, these factors have made this business a table performer, with revenue set to rise at 2% and earnings at 5%.
2. Gold Fields Limited
Gold Fields is a trusted and stable investment opportunity. Revenues are constantly growing and EBIT margins have taken an upward turn from 14.7% to 38%. With a market capitalization in the region of R120b, it is a company well worth including on any watchlist.
3. Naspers
Research analysts and fund managers are strongly suggesting purchasing Naspers stocks. The share price of this global internet company and investor in technologies has been one of the strongest on the bourse, having achieved very good results from international investments.
4. Sasol
Sasol is one of the big names which is increasingly being suggested by fund managers with good track records. With a share price that is according to experienced consensus currently undervalued, there are strong possibilities of far better performances in the mid-term.
5. Capitec
In the financial sector, Capitec is gaining investor confidence. Though some analysts tend to suggest that there isn’t not much scope for upside growth, there is a consensus feeling that Capitec shares will continue to expand.
6. Shoprite
As Africa’s largest retail chain, Shoprite stocks have shown consistent stability over the preceding five-year period, with a good outlook for expansion of its retail activities and assets. As an avenue for long-term investment, this well-managed entity is sure to bring stable returns
7. Bidvest
Bidvest is a high-performing share that remains worth buying. Though stock prices haven’t been mobile over the last year, the group remains a very worthwhile prospect for investors. Fund managers and analysts expect profits to increase over the coming year, with recent unusual expenses now a thing of the past.
How to buy shares in South Africa
- For investors starting out on this venture, there are some important points to bear in mind. Neither stocks nor routes to investment should be chosen without careful research.
- Once suitable stock choices have been made, the next step is to find a reliable and accredited broker. An investment minimum of R5000 – R10 000 is required to make any profit-taking worthwhile, as brokerage fees will consume profits in investments under these margins.
- Exchange-traded funds are a safer option for traders with less experience as these packages spread risk across a variety of stable and well-performing stocks with a variety of assets.
- For more experienced investors, a list of stockbrokers will provide information regarding investment records and institutional accreditation. Such preliminary steps in research are crucial to avoiding scam operators who unfortunately still dog the markets.
Also read: 5 best forex brokers with high leverage
Investing in any business venture must be well researched in order to reap the right investment returns. The guidelines provided above are vital in this process.
