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I regularly check the development of my holdings and they are currently made up entirely of UK shares on the UK Stock Exchange. FTSE index.
When I checked this morning, I noticed that my top two artists right now are Howden Joinery Group (LSE: HWDN) and wise group (LSE: SGE).
I will explain why they have done well and if I have the opportunity to buy more shares today.
Howden Joinery Group
I bought some shares in the specialist carpentry and kitchen supplies company in July 2022. At that time, I paid 611 pence per share. The shares are currently trading at 791p, representing a return of 29% in around a year and a half. I have also received dividends since my initial investment.
Howden has raised his performance and profile well in recent years. Its reputation for providing good quality products and serving specifically the construction sector has boosted performance and investor confidence.
The current volatility is something I'm wary of. This is because the turbulence has caused construction projects to slow down. Additionally, with higher than usual levels of inflation, costs are rising and margins could be tighter than ever. This could harm performance and profitability.
However, I think the company's long-term prospects are really interesting. It should be boosted when volatility decreases. Much of this will be due to the housing shortage. The current imbalance means businesses will need kitchens, doors and other products Howden sells when building new homes. This should help Howden improve performance and profitability.
Currently, I find a dividend yield of 2.65% and stocks trading at a price-to-earnings ratio of 11 attractive. However, it is worth noting that dividends are not guaranteed. I would buy more shares if I could based on my current investment case.
wise group
I bought shares in software-as-a-service (SaaS) company Sage in March 2022 at a price of 704 pence per share. Today, the shares are trading at 1,185 pence, which is a handsome return of 68%. Again, I have also received dividends since taking positions in the stock.
In my opinion, Sage's growth story is one of the best on the FTSE. Going from a small business software company to one of the most recognized brands in accounting has been a great journey to date.
Sage stock is trading at all-time highs and with a P/E ratio of 37. This means any negative news could send the stock tumbling. Furthermore, the threat of artificial intelligence (ai) could harm the future prospects of the business. However, Sage recently allayed fears on this front by confirming that it has been using ai in its software for years and will continue to develop and evolve its offering.
The biggest step for me was when Sage moved to a recurring subscription model. This is because it can help provide stable income and improve investor confidence and profitability. It seems to have been worth it so far!
Today, the stock offers a dividend yield of 1.6%, which is decent but lower than FTSE 100 average of 3.8%.
In the case of Sage, I wouldn't buy any more shares at this time, but I will hold on to the ones I already have and will continue to reinvest dividends elsewhere if I receive them.