Can Royal Mail shares deliver for investors?

Laura Dew
clock

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...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on UK

Revised figures show zero UK real GDP growth in Q3
UK

Revised figures show zero UK real GDP growth in Q3

Revised ONS figures

Sorin Dojan
clock 23 December 2024 • 1 min read
UK retail sales edge up by 0.2% in November
UK

UK retail sales edge up by 0.2% in November

Black Friday sales not counted

Sorin Dojan
clock 20 December 2024 • 2 min read
City Minister Tulip Siddiq embroiled in £4bn anti-corruption probe - reports
UK

City Minister Tulip Siddiq embroiled in £4bn anti-corruption probe - reports

Alleged £10bn nuclear plant deal

Linus Uhlig
clock 19 December 2024 • 1 min read
Trustpilot