How to Buy Eaton Vance Shares Online in the UK

Eaton Vance is a US-based investment management company with a market capitalisation of just under $5 billion. Although its shares are listed on the New York Stock Exchange (NYSE), making an investment from the UK is easy.

All you need to do is open an account with an FCA broker that provides access to the American stock market, deposit some funds with your debit/credit card and then decide how many shares you wish to buy.

In this guide, we walk you through the process of how to buy Eaton Vance shares online in the UK. We’ll also discuss the best UK stock brokers to do this with.

Step 1: Find a UK Stock Broker to Buy Eaton Vance Shares 

In order to buy Eaton Vance shares online in the UK, you will first need to open an account with a trusted brokerage platform. There are hundreds of such as platforms available to UK residents – most of which are regulated by the FCA.

With that said, you need to look at a range of factors before signing up – such as how much the broker charges to buy US stocks, what payment methods are accepted, and whether or not your funds are safe.

To help clear the mist, below you will find two of the best UK stock brokers that allow you to buy, sell, and trade Eaton Vance shares.

1. IG – Trusted UK Broker With Over 10,000+ Shares

IG is a trusted brokerage house that has been offering share dealing services since the 1970s. Today, the online platform offers over 10,000 shares, ETFs, and investment trusts. Regarding its stock library, you will have access to dozens of UK and international markets – including that of the NYSE. In terms of fees, IG will initially charge you £10 per trade to buy Eaton Vance shares.

Although this is expensive, you can get your US share dealing fees to zero. In order to benefit from this, you simply need to place three or more trades in the prior month. This particular pricing schedule will be ideal for those of you that plan to buy, sell, and trade assets on a regular basis. It is also worth noting that IG allows you to trade Eaton Vance shares in the form of CFDs. This comes with several perks – such as being able to apply leverage.

UK retail clients can apply as much as 1:5 on stock CFDs, so a £1,000 account balance would permit a maximum trade of £5,000. Additionally, going the CFD route means that you can also short-sell Eaton Vance shares. This is ideal if you think that the price of the shares is overvalued. In terms of fees, IG charges $0.02 per stock when trading US share CFDs. This does, however, come at a minimum of $15.

When it comes to the trading suite itself, the share dealing platform can be accessed online or via your mobile phone. If you’re to engage in short-term trading, IG also supports the third-party platform MT4. If you like the sound of IG, the broker requires a minimum deposit of £250. The platform supports debit cards and bank transfers – which come fee-free. You can also deposit with a credit card, but a fee of 0.5% and 1% will apply when using MasterCard or Visa, respectively.

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Step 2: Research Eaton Vance Shares

Seasoned investors that have a long-standing track record of making consistent gains do so because they dedicate lots of time to research. This is crucial, as you should never buy shares just because a third-party commentator tells you to, whether you’re investing in Eaton Vance or similar companies like Legal and General. With this in mind, we would suggest you read through the following sections on Eaton Vance.

We cover some background on what the firm does, how its shares have performed in recent years, and ultimately – whether or not it resembles a viable investment.

What is Eaton Vance?

Launched way back in 1924, Eaton Vance is a US-based investment management company. This includes wealth management solutions and investment strategies for both financial institutions and individual investors. Since 2014, the firm has also been offering exchange-traded funds – as per its SEC approval.

As per its Q4 2019 filing, Eaton Vance has just under $500 billion worth of assets under management. In buying Eaton Vance shares, you are speculating on the long-term performance of the company. That is to say, there will be a direct correlation between the operating revenue and profit the firm is able to deliver with that of the value of your shares.

Eaton Vance Share Price History

Eaton Vance is one of the oldest publicly-traded companies in the US – with its NYSE initial public offering (IPO) taking place in 1959. Going back 25 years, Eaton Vance shares would have cost you just $6 in 1995. The shares have gone through a somewhat volatile journey since then, with various bull and bear cycles along the way.

With that said, the Eaton Vance shares hit all-time highs in 2018 at just over $60 per stock. This represents a 900% increase in 25 years. In comparison to the S&P 500 Index during the same period – which is a great way to gauge the performance of the wider US markets, Eaton Vance has returned stockholder more than twice amount of the growth.

However, Eaton Vance shares have dropped off since their 2018 heights – hitting lows of $33 by the end of the year. The trend then began to reverse in 2019 – where the upward trajectory continued until the coronavirus pandemic seel-off begun in February 2020. In the space of less than one month, the shares went from $50 down just $27 – a decline of more than 46%.

The good news for investors is that Eaton Vance shares have since recovered to $40 per stock – as of October 2020. In simple terms, this means that the stocks have a further 25% increase to go before they reach pre-pandemic levels.

Eaton Vance Stock Split

It is important to note that the above share price history is based on the 5 stock splits that Eaton Vance has initiated.

This covers:

• 2-for-1 split in 1992
• 2-for-1 split in 1997
• 2-for-1 split in 1998
• 2-for-1 split in 2000
• 2-for-1 split in 2005

As per the above, those holding 100 shares when Eaton Vance first went public would now be in possession of 3,200 shares.

Eaton Vance Shares Dividend Information

If you’re looking to add some strong and stable dividend stocks to your share portfolio – it’s well worth considering Eaton Vance. This dividend giant has been making distributions for the past 28 years. At the time of writing in the first week of October 2020 – its most recent dividend returns a yield of 3.81%. This very competitive – especially when you consider the number of blue chip stocks that have either cut or suspended dividend payments as a result of the pandemic.

Should I Buy Eaton Vance Shares?

Although looking at the historical price action of a stock is important, the main focus should be on what the short-term and long-term future holds for Eaton Vance. As such, below we outline some of the good and bad points facing the company – and how this might influence the future direction of its shares.

No Dividend Cut or Suspension

First and foremost, it is important to remember that scores of NYSE and NASDAQ-listed stocks were forced to cut or suspend their dividend payments in Q2 and Q3. In most cases, this was with the view of consolidating much-needed cash flows to weather the coronavirus storm.

However, no such cut/suspension has so far been implemented by the Eaton Vance board – which is a great sign. After all, in times of economic uncertainties – your best bet is stick with companies that possess a strong balance sheet.

Recovery From March Mass-Sell Off Has Been Good

Very few stocks managed to avoid the mass market sell-off that occurred in February/March 2020 – as per the fear and hysteria surrounding the COV-19 pandemic. In terms of Eaton Vance, its shares dropped by more than 46% in less than one month of trading. However, the good news is that the shares have recovered nicely since – with an October 2020 price of $40.

This translates into a 48% recovery in just under 7 months. The stocks need to increase by an additional 25% to get back to pre-February levels. This leaves plenty of upside potential based on current prices.

Performance Has Been Solid in Recent Years

In terms of the financials, Eaton Vance has returned earnings growth of just over 13% over the past five years. This is impressive when you consider the sector average is a smidgen over 8%. Additionally, although the firm is expected to see its earnings drop by over 4.5% this year, its sector counterparts are looking at larger losses.

Eaton Vance Shares Buy or Sell?

You certainly won’t get rich with an investment in this age-old financial firm. However, if you’re looking for a strong and stable institution that has a strong balance sheet – alongside a consistent dividend policy, Eaton Vance might be what you are looking for. With that said, just make sure that you perform your own independent research prior to making an investment.

The Verdict?

Although Eaton Vance is listed on the New York Stock Exchange exchange, buying its shares from the comfort of your home has never been easier. The most important thing is that you choose a top-rated UK brokerage firm that offers competitive fees and a solid regulatory framework.

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