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BA. Bae Systems Plc

1,338.00
-17.00 (-1.25%)
Last Updated: 11:48:29
Delayed by 15 minutes
Bae Systems Investors - BA.

Bae Systems Investors - BA.

Share Name Share Symbol Market Stock Type
Bae Systems Plc BA. London Ordinary Share
  Price Change Price Change % Share Price Last Trade
-17.00 -1.25% 1,338.00 11:48:29
Open Price Low Price High Price Close Price Previous Close
1,363.50 1,336.00 1,365.00 1,355.00
more quote information »
Industry Sector
AEROSPACE & DEFENCE

Top Investor Posts

Top Posts
Posted at 17/4/2024 14:03 by anhar
I've held for many years as an income investor in a diversified port. As long as they keep delivering the divis I'll continue to hold, having little interest in share price fluctuations.
Posted at 17/4/2024 10:37 by anhar
Short term share price moves are random, hence why they often don't follow the direction some small investors think they "should".
Posted at 27/3/2024 11:00 by anhar
PS, If anyone has held from way back in the 2 -3 quid range, and not sold one, bloody well done!

Not that low as my average cost is 387p but I'm still showing a large profit, never having sold any of my holding. That's not because I'm smart, it's because I'm purely a long term hold income investor with a diversified portfolio and care little for price fluctuations. As long as a share keeps delivering with divi increases over time, I'll keep holding and that's what's happened here. For me, there is no reason to sell and certainly not just because of the capital gain.

BA. cap growth has been exceptional and is far from the norm in my port. Nevertheless long term total port growth has been good with the better performers making up for the weaker ones. But I'm not here for that, it's total port income that interests me and this too has delivered over the decades. Not always a steady year on year rise, there are inevitably some down years, but looking at decades, it has fulfilled the original intentions for my strategy.

It is interesting to me that an income approach hasn't done badly on capital either, even though that's not why I do it. I guessed at the outset that this was likely to happen but there was never any guarantee. Divi income is risk income, a risk I was willing to accept to be in equities.
Posted at 21/2/2024 11:02 by anhar
Current share price of over 1200p and the dividend of 30p isn’t inflation beating as the inflation is running over 5% at least! The dividend is only 2.4% if you are buying this over 1200p - you would be better.off investing in Barclays or Lloyd’s or NWG

As ohdear suggests, I think you misunderstand, confusing divi with yield. It is the divi increase of 11.1% that is inflation beating. I agree the yield is low but that's a different matter. As for being better off in other higher yielding shares, I do exactly that with BA. plus many other stocks in a widely diversified and very long term hold income port.

For an income investor it is crucial to diversify imo, to spread the risks. This inevitably means that some shares will be higher yielding than others when held for decades like me. That's not a problem because diversity trumps individual yield so an arms maker like BA. is welcome in my port and I've held it for many years. It's the overall port yield that matters to me.
Posted at 21/2/2024 09:33 by anhar
Inflation beating divi increase of 11.1% for 2023 to 30.0p (2022 27.0p). As purely a long term income investor, this was very good news for me as is their fine long term divi record.
Posted at 21/2/2024 09:28 by squidsgone
Usual drop on results day, I expect the usual recovery past last nights close over the next couple of weeks as the results roadshow travels around the investor community.
Posted at 05/2/2024 12:56 by ribblewader
Lifted this from the RR. thread......

Rolls-Royce (LON: RR) and BAE Systems (LON: BA) are some of the best-performing FTSE 100 index companies in the past few months. RR shares have surged by more than 800% from its lowest point in 2020. This recovery happened as investors cheered the recovery of the civil aviation industry.

BAE Systems, on the other hand, has risen by over 230% from its 2020 lows. The two companies have rebounded as defense spending has jumped following the Russian invasion of Ukraine followed by the crisis in the Middle East.

Further, the ongoing fear that Russia will invade Ukraine has led to more spending by Western countries. Therefore, BAE Systems and Rolls-Royce will be in the spotlight this week as Saudi Arabia hosts the World Defense Show. This is an annual show that brings most companies in the industry to showcase their products and make deals.

BAE Systems and Rolls-Royce will be present at the event and analysts will be watching for potential announcements.
Posted at 16/10/2023 10:54 by anhar
I'm purely an income investor and have held BA. for many years. Dividend growth has been decent and by chance capital growth great, especially the last couple years, though I don't hold with that aim.

The current yield as said is low, under 3% but I'm not considering selling even though I could increase my income by reinvesting in a higher yielder. I largely ignore share prices and rather consider the cash income I receive year on year. Since this has been improving from BA. I'll continue to hold.

Another important point in my strategy is diversification. To reduce risk I hold a wide range of sectors in my port and there's no other share in the FTSE100 to compare with this arms manufacturer though there is in the USA if BA. for any reason ran into trouble serious enough for me to dump it. Guns is a sector in which I wish to be.
Posted at 20/9/2023 15:57 by pj84
To add to the above, the Questor article also mentions that there are no signs of the elevated geopolital tensions reducing in the foreseeable future and on the target of Nato countries spending 2% of GDP, 7 countries met the target last year but 11 are expected to achieve that this year.

Also as the GDP of NATO countries increases so does the amount of the 2% target and Questor suggests that as interest rates start to peak around the world any resumption of growth will feed directly into the GDP targets.

So despite the recent share price increases Questor still rates the shares as a buy.

It also mentions investors have to be prepared for share price volatility and today's share price movement is a good illustration of that.
Posted at 20/9/2023 10:07 by rech
...Elevated geopolitical risk.. has prompted an about turn in attitudes towards defence spending in many major economies.

This has resulted in an improved outlook for defence companies, which has strengthened investor sentiment towards the sector. BAE’s shares now trade on a p/e of about 19.
While some investors will understandably argue that now is the time to take profits, Questor believes there are more gains to come.

Crucially, the world economy’s growth rate is poised to improve. The current cycle of interest rate rises is coming to an end and the clamour for interest rate cuts is likely to grow as inflation returns to target.

Since some military spending is directly related to economic output – Nato members, for example, are supposed to spend at least 2pc of GDP on defence – an improving global economic outlook should boost defence stocks.

Furthermore, the new era of elevated geopolitical risk shows no sign of abating. Ongoing tensions between the US and China, alongside the war in Ukraine, suggest that demand for military assets is likely to rise. In the current year, for example, 11 Nato members are expected to meet the 2pc spending target, compared with just seven last year, and defence expenditure among Nato members is expected to grow by almost 8pc this year. This compares with an annualised rise of just 2.8pc over the previous eight years and shows that the era of skimping on military spending is over.

In terms of recent performance, BAE’s half-year results showed an 11pc rise in sales and a 10pc increase in underlying operating profits. It has a record order backlog of £66bn and a solid financial position, as evidenced by a net gearing ratio of just 31pc. Its capacity to raise borrowings has been used to fund in part the $5.6bn (£4.5bn) takeover of Ball Aerospace. Since the acquisition offers double-digit annual growth potential and the prospect of margin enhancement, it could prove to be a sound investment.

British investors have a limited choice of defence companies, so BAE remains a worthwhile, and somewhat scarce, investment opportunity. Its returns are likely to be more modest after its huge outperformance of the FTSE 100 in recent years, but an improving market outlook and a sound financial position mean further gains are ahead.

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