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As an expert investor, I look for the best investment mode to ensure maximum returns. I firmly believe that a stocks and Shares ISA is ideal for me.
For me, one of the biggest attractions of the ISA is the potential tax benefits. Buying shares within an ISA means I am LEGALLY exempt from paying tax on dividends and capital gains.
Please note that tax treatment depends on each client's individual circumstances and may be subject to change in the future. The content of this article is provided for informational purposes only. It is not intended to be, nor does it constitute, any type of tax advice. Readers are responsible for conducting their own due diligence and obtaining professional advice before making any investment decisions.
I'm looking for stocks with the potential to offer me consistent dividends and growth in the future. With that in mind, one choice I have in mind is computing center (LSE: CCC).
Here's why I hope to purchase the stock as soon as I have some cash to invest.
A brave new world
Computacenter is one of the leading IT infrastructure providers throughout Europe. The way the world works has changed enormously thanks to technology and it doesn't look like it's going to slow down. This is where Computacenter comes in to help businesses stay up to date.
The stock has had a decent run over the last 12 months, up 13%. This time last year they were trading at 2,252p, compared to current levels of 2,550p.
the good things
Computacenter has some basic traits that I personally review when looking to buy stocks.
- The business has a good track record of performance and growth. As mentioned above, a large part of this is due to the digital revolution. However, I am aware that the past is never a guarantee of the future.
- Future growth prospects are bright, in my opinion. This is mainly related to the continued digital adoption and artificial intelligence (ai) revolution. This exciting technology could once again change the way the world works. Computacenter's presence and profile, as well as existing relationships with suppliers and customers, could mean it is at the forefront of this revolution.
- The shares appear to be reasonably priced, especially for a technology stock. These types of stocks usually have high valuations. They are currently trading with a price-earnings ratio of just over 14.
- Finally, dividends help build wealth and the stock currently offers a dividend yield of 2.8%. If the company can continue to grow, this could increase. However, I understand that dividends are never guaranteed.
Risks and final reflections.
There are two things that concern me about the stock. First, continued economic volatility could have a real impact on Computacenter's performance and returns, at least in the near term. This is because companies are battling higher costs and looking to cut spending, rather than increase it at present.
The other issue is the company's growth prospects. ai is a huge topic right now, but there's no guarantee the technology can take off. If confidence falls, could Computacenter's growth be slowed? I'll keep an eye on this.
To conclude, in my opinion, there are many things to like about Computacenter. It seems like the exact type of shares I would love to buy for my ISA to help me build wealth so I can enjoy it later in life.
