Are these the best UK shares to watch in November 2024?
A selection of some of the best dividend, growth and value UK stocks to watch next month. These companies have been selected for recent market news.
In autumn 2024, the UK’s economic landscape continues to deliver a mixed outlook. After the country slipped into a technical recession at the back of end of last year, the UK economy has now bounced back — with gross domestic product (GDP) rising by 0.5% since January.
For context, consumer price index (CPI) inflation fell, reaching its target figure of 2% in May, down from a high of 11.1% in October 2022. As a result, The Bank of England cut interest rates by 0.25 basis points to 5% on 2 August, the first rate cut there’s been in over 4 years.
Despite rising to 2.2% back in August, inflation has since fallen to 1.7% as a result of lower airfares and petrol prices. In its latest meeting, the BOE decided to keep interest rates the same. Whilst further interest rate cuts are likely in the coming months, there’s some concern inflation may continue to creep up. If this happens rate cuts will be less frequent and by fewer basis points.
Top dividend stocks
British American Tobacco
British American Tobacco saw a 0.8% drop in revenue for the first half of this year, and sales of traditional cigarettes decreased by 2.6% as volumes in the US, their main market, are down 9% and the company fights to maintain their market share.
Despite the small, single figure drop in revenue and sales, the company has made no change to their full year guidance and expects to grow in the final half of the year, as they see the benefits of H1 investments and introduce new or improved new categories products onto the market.
However, these New Category products which helped to offset lower revenues from traditional combustibles, have come under increased scrutiny with the UK announcing a ban on disposable vapes and imposing a vape tax. Profit margins may be hit as this new legislation comes into place.
Following their recent H1 results shares were up 2.8%. Further gains are possible and the company’s substantial dividend of 58.88p per share is a key attraction.
Our analysts view the stock in a buy rating with a price target of 2932.00p, in the next 12-month period, up 11.44% from its current price.
Dividend yield: 8.9%
Dividend cover: 1.59
HSBC
During Q2 HSBC Holdings brought in a revenue of $16.5 billion, up 5% year-on-year. Profit before tax increased also increased and was up 7% reaching a total of $8.9 billion. This exceeded analyst expectations of $7.8 billion. Net interest remained flat.
The company’s strong performance can mostly be attributed to the Wealth and Investment Banking parts of the company and the fees they charge.
On top of this, HSBC have recently announced an interim dividend of $0.10 per share and a $3 billion share buyback.
With global interest rates on their way down and the possibility of fresh tensions between the US and China, new CEO Georges Elhedery will face some difficult challenges within his first few months as CEO, and it’ll be interesting to see the impact this will have upon future dividend payments.
Our analysts have given the stock a buy rating with a price target of 762p in the next 12—month period, up 12.83% from its current price.
Dividend yield: 6.93%
Dividend cover ratio: 1.89
Top growth stocks
Gaming Realms
UK based mobile gaming company Gaming Realms reported strong H1 results with revenue in core content licensing up by 28%. Adjusted EBITDA increased by 46% and profit before tax reached 3.5 million up 51% year-on-year.
Going forward, the company is looking to expand its presence in international markets by introducing premium games such as Slingo Press Your Luck and Slingo Fowl. In H2 so far, the company have made good progress with this goal having launched content with providers such as Virgin Bet and Bet365 in West Virginia and British Columbia.
Our analysts have given the stock a buy rating with an average price target of 50.00p, up 51% from its current price.
LSL Property Services
Real estate company LSL Property Services reported strong H1 results, with revenue reaching £85.4 million, up 18% year-over-year and net income increasing by 87% to £10.2 million. Operating profit also increased by 72% to 13 million and its interim dividend of 4p has been maintained.
The company’s strong H1 performance has ensured it’s on track to meet its end of year guidance and going forward is looking to focus on enhancing shareholder value and driving organic growth.
Our analysts have given the stock a buy rating, with an average price target of 428p over the next 12-month period, up 41% from its current price.
Top value stocks
National Grid
Ahead of announcing its H1 results, National Grid have confirmed a stable performance which is in line with management expectations. Stronger profits are expected in H2.
Going forward, the energy company plans to invest £60 billion on energy infrastructure by 2029 whilst also streamlining its business offering to focus on energy infrastructure. Although its dividend has been reduced to help fund this growth plan and further cuts cannot be ruled out, in the long-term consistent profits and dividend growth seem likely, but this can never be guaranteed.
Our analysts have given the stock a strong buy rating with an average price target of 1148p over the next 12-month period, up almost 14% from its current price.
How to invest or trade in UK shares with us
Learn more about UK shares
Open an account with us or practise on a demo
Select your opportunity
Choose your position size and manage your risk
Place your deal and monitor your trade
You can either invest in shares directly or trade using spread betting or CFDs to benefit from leverage.
Keep in mind, leverage means you can gain or lose money faster than expected. Because your position size is far greater than your deposit, you could lose more money than you put in. Be aware also that past performance is not an indicator of future returns.
Learn more about the differences between trading and investing here.
Top shares to watch summed up
The above five companies are just a small selection of top stocks to watch. Remember that any company can also fail and always do your own research.
Trade and invest in over 17,000 UK, US and global shares from zero commission with us, the UK’s No.1 trading provider.* Learn more about trading or investing in shares with us, or open an account to get started today.
*Based on revenue excluding FX (published financial statements, October 2021).
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Act on share opportunities today
Go long or short on thousands of international stocks with spread bets and CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
