Stock market

These are the most popular 2024 Stocks and Shares ISA picks of all time.

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We received our brand new 2024 Stocks and Shares ISA allowance just over a month ago. But already, the most popular shares are starting to form.

Those depressed financial stocks seem more popular than last year. Especially, M&G (LSE: MNG) is climbing up the list with ISA providers.

This should be partly due to its large dividend forecast with a 9.5% yield. It was previously above 10 percent, but the share price has been rising in May.

Power of investment

M&G is in the savings and investment business. Therefore, we would expect the stock market to do well when it is booming, and less well when it is not. And it’s a tough time indeed when inflation and interest rates are squeezing investors’ pockets painfully.

But, the broker’s predictions are now starting to show. And investors seem to be getting back on board.

Analysts expect earnings growth to pick up strongly in 2024, and dividend yields to return to 10% by 2025.

Banks in fashion

Lloyds Banking Group (LSE: LLOY) ISA favorites are also on the rise. You know, the kind that big investors have shied away from for years, but it’s been popular among private investors on the contrary.

Lloyds shares are performing well in 2024, and the forward dividend yield is now a paltry 5%. However, banks are still under pressure. And weak forecasts for economic growth could keep the financial sector down for some time.

But sure for investors FTSE 100 Banks will always have a good long term future and they are just waiting for confirmation of recovery… why wait?

I will always consider buying my favorite stocks when I think the uncertainty is at its worst, when the shares may be very cheap.

Insurance is back.

Like insurers it is good to see. Legal and General Increase in popularity this year. This can be a very cyclical sector. Insurance stocks can be the most volatile, and they can be damaged during tough times.

If I bought something today, I would expect to see share prices fall the next time the stock market goes down. And that’s why I think getting the diagnosis right is so important.

And this is a sector that I would really only buy for the very long term, to increase my chances of eventually being able to sell higher.

Old favourites

I see too. Rolls Royce Holdings 2024 is among the top buyers of ISAs so far. After the tremendous gains of the past two years, I probably would have expected many to sell and move on to something new.

But it seems that people still expect more to come from the rolls in the coming years. They may be right, but the danger is now more visible.

Vodafone The ISA still looks like a great buy, even though its big profits are set to halve in 2025. 10% on the cards this year seemed unsustainable to me. But the latest move seems sensible, and it will be interesting to see if it remains a favourite.

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