Investing in a speedster stock like ( ) can play havoc with the nerves. My big worry is that their market-beating form will stop the moment I click the Buy button, leaving me sitting on a loss. As a rule, I feel safer on the assumption that this will reduce the chances of overpaying for past performance.
So it was a big deal for me to buy BAE Systems on 3 March, and again on 8 May, as shares in the defence manufacturer had been going great guns for years. Happily, they didn’t crash and burn on contact with my portfolio. In fact, I’m up 5.
44%. My stake isn’t rocketing to the moon, but at least it’s pointing the right way. Big FTSE 100 winner Now I’m wondering whether the momentum can continue and if I should buy the stock for the third time this year.
The BAE Systems share price is up 45.77% over one year and a mighty 207.93% over five years.
If I’d invested £5,000 back then, I’d have £15,396 today. Or closer to £16,000 including reinvested dividends. Clearly, it’s a shame I didn’t buy, but that’s history.
What about today? Trading at 22.1 times earnings, BAE Systems shares are pricier than the FTSE 100’s average valuation of 13 times. That’s hardly surprising.
This isn’t an average stock. The forecast yield for 2024 is 2.33%, which is one of the lowest in my portfolio, but again, not surprising given the .
BAE Systems is forecast to yield 2.54% in 2025, which shows progression. By contrast, the world is regressing into a more warlike state by the .