The government is planning to take Royal Mail private in the coming weeks, but would you be rewarded for taking a stake in the business?
Fidelity Worldwide Investors said looking at the past performance of other big groups that have been privatised, Royal Mail looks to be worth a buy. Michael Clark, manager of the MoneyBuilder Dividend fund, said BT and British Airways are examples of stocks which delivered for investors once the groups went private, because of their dividend payouts. Investors in BT and other privatisation shares have received the vast bulk of their return in the form of reinvested dividends, he said. This worked out When BT was first listed on the Stock Exchange in 1984, a stake of £1,000 in newl...
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