Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



The Beginners' Portfolio: Vodafone Group and Aviva Are in the News

LONDON -- This article is the latest in a series that aims to help novice investors with the stock market. To enjoy past articles in the series, please visit our full archive.

Since our last portfolio update, a few more of our holdings have been making the news -- and its always good to keep an eye on what's happening.

One of the main reasons I like Vodafone Group  (LSE: VOD  ) (NASDAQ: VOD  ) is its international nature.

And it looks like that market reach is paying off again, with Vodafone entering into a consortium with China Mobile to bid for a mobile telecommunications license in Myanmar (Burma). It's a great opportunity -- a country of 60 million people finally entering the world's open markets, and where mobile phone usage is still very low and horribly expensive.

Although it has been a bit erratic over the past year, Vodafone share price is up 13% since we bought it, to 191 pence today -- and we're getting a dividend yield of 5%-6%, too, which is terrific. With a P/E of 12.5, I reckon Vodafone is still a strong "buy."

Last week, Aviva  (LSE: AV  ) announced the completion of the sale of its 49% stake in CIMB in Malaysia for 152 million pounds. It's not massive news, but it does represent a step in the strategy of focusing on markets where Aviva enjoys competitive advantages and divesting itself of non-core businesses.

Aviva shares are down since we bought them, from our purchase price of 321.4 pence to today's 297.5 pence. But we've only had them a month and the fallout from the firm's slashed final dividend is barely subsiding.

With the rebased dividend looking likely to be close to 5% for the coming year, and the shares on forward P/E of only 7, Aviva still screams "buy" to me.

Rio Tinto
Rio Tinto  (LSE: RIO  ) suffered a setback at its Bingham Canyon Mine in Utah, after a slide of more than 150 million tons of material halted production and will adversely affect copper production for the year. But in positive news, we also heard of record first-quarter iron ore production.

The share price? Well, mining shares have all been in a slide of late due to fears of falling commodities prices. Rio Tinto is down just 1% since we bought, to 3,015 pence. But short-term prices in this sector don't matter much. This still looks like a long-term bargain to me.

And finally on to our biggest success story so far, video technology expert Blinkx  (LSE: RTHM  ) . The firm struck a new deal earlier this month with XOS Digital, which will "give Blinkx users access to a wide array of original and high-quality sports content."

The share price has fallen back a little since its recent peak, but at 80.25 pence we're still nearly 120% up on the deal! And I think Blinkx has plenty more growth potential.

Nearly a year
How time flies! It's nearly a year since the Beginners' Portfolio chose its first share -- Vodafone on May 18, 2012. Next month I'll be bringing you a first-anniversary update, when we'll be able to look back on Tesco's results, which are due tomorrow.

Finally, my idea of the kind of shares that should make up the core of a beginner's portfolio is the same as my choice for an ISA, or a retirement portfolio -- or, in fact, any portfolio. I'd start with good strong companies that should stand the test of time and potentially reward you for decades.

Not surprisingly, the Fool's top analysts think similarly, and they have put together a special report detailing five blue-chip shares that I think would be ideal for anyone at the start of their investing career. But it will only be available for a limited period, so click here to get your hands on these great ideas that could start you on the road to long-term riches.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2367130, ~/Articles/ArticleHandler.aspx, 10/22/2016 1:36:39 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 4 hours ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 12:11 PM
AV $438.81 Down -1.19 -0.27%
Aviva CAPS Rating: No stars
RIO $2668.26 Up +49.76 +1.90%
Rio Tinto CAPS Rating: No stars
RTHM $35.75 Down -0.25 -0.69%
RhythmOne CAPS Rating: No stars
VOD $27.77 Down -0.05 -0.18%
Vodafone CAPS Rating: ****
VOD $222.97 Down -0.53 -0.24%
Vodafone CAPS Rating: No stars