Next is a major UK clothing retailer that has since expanded into the online space. With a market capitalization of over £7 billion, Next is a fully-fledged constituent of the FTSE 100 index. As such, there are hundreds of online stock brokers that allow you to invest in Next at the click of a button.
In this guide, we show you how to buy Next shares in the quickest and cheapest way. On top of discussing the best online brokers to do this with, we also explore whether or not Next represents a viable addition to your share dealing portfolio.
- 1 Step 1: Find a UK Stock Broker to Buy Next Shares
- 2 Step 2: Research Next Plc Shares
- 3 Next Share Price History
- 4 Next Shares Dividend Information
- 5 Should I Buy Next Shares?
- 6 Step 3: Open an Account and Deposit Funds
- 7 Step 4: Buy Next Shares
- 8 The Verdict
- 9 eToro – Buy Next Shares With Zero Commission
- 10 FAQs
As Next is listed on the FTSE 100 index, it makes sense that you can buy its shares from multiple online brokers. But, knowing which platform to go with can take time. For example, you need to check how much the broker charges in commission, and whether or not it is licensed with the FCA.
To point you in the right direction, below we have listed a small selection of stock brokers that allow you to buy Next shares in a safe and cost-effective environment.
1. eToro – Buy Next Shares with Zero Commission
Buying shares online for the first time can be a daunting task. This is why we would suggest considering eToro. The popular online broker, which is now home to over 12 million investors, allows you to buy Next shares with ease. All you need to do is open an account, deposit some funds, and then decide how many shares you wish to buy.
Best of all, eToro does not charge any trading commissions or monthly/annual fees. This makes the platform the most cost-effective option in the UK market. On top of buying Next plc shares, eToro gives you access to 800+ other shares, including many of the best shares to buy. This includes companies listed on the London Stock Exchange, as well as 16 other markets. This means that you can create a diversified portfolio at the click of a button – commission-free.
You will also be able to invest in ETFs. eToro also supported CFD instruments, meaning that you can short-sell stocks and apply leverage. This will boost the size of your position. If you are a passive investor – or you simply have little to no experience in picking stocks, eToro allows you to copy the portfolio of other traders. You can access eToro online or via its mobile investment app. If you’re looking to improve your investment knowledge, the platform offers a wealth of educational guides.
In terms of the fundamentals, eToro is a heavily regulated broker. It holds licenses with several bodies – including the Financial Conduct Authority (FCA). It is also partnered by the Financial Services Compensation Scheme (FSCS), so your funds are protected up to the first £85,000. You will need to deposit at least $200 at eToro, which is about £160. You can do this with a debit card, credit card, e-wallet, or bank transfer.
- User-friendly online stock broker
- Buy shares without paying any commission or share dealing charges
- 800+ shares listed on UK and international markets
- Buy shares or trade CFDs
- Social and copy trading tools
- Accepts PayPal
- Mobile trading app
- Holds an FCA licence
- Not suitable for advanced traders that like to perform technical analysis
67% of retail investor accounts lose money when trading CFDs with this provider.
2. Capital.com – Trade Next CFDs With Tight Spreads
Capital.com is an online CFD broker. This means that you will not be able to ‘invest’ in shares in the traditional sense, as you will be ‘trading’ CFD instruments. In Layman’s terms, you will be speculating on the short-term price movement of Next. So, not only can you profit in the event the shares go up, but also if you think they will drop in value.
Additionally, trading Next CFDs at Capital.com allows you to apply leverage. This can be facilitated at up to 1:5. As such, a £300 account balance would allow you to enter a position worth £1,500. Much like in the case of eToro, Capital.com allows you to trade Next share CFDs on a commission-free basis. We also find Capital.com to be competitive in the spread department.
For example, the platform offers a buy and sell price on Next share CFDs at 57.7 and 57.95, respectively. This ensures that you are able to dip in and out of the market in a cost-effective manner. On top of Next, Capital.com allows you to access over 2,000+ other stocks CFDs. This includes firms listed in several marketplaces – including but not limited to the UK, US, Hong Kong, Japan, Germany, France, Finland, and the Netherlands.
In terms of the trading platform itself, everything can be accessed via the Capital.com website. You can also trade on your mobile phone, as the broker offers a native app on iOS and Android. If you do like the sound of trading Next shares at Capital.com, you can get started with a minimum deposit of just £20. This is great if you want to try stock trading with small volumes. Finally, Capital.com is regulated by the FCA, so your funds are protected.
- Trade over 2,000+ share CFDs
- Educational app for new traders
- AI assistant identifies your weak points
- Trade ideas generated daily
- Excellent charting and analysis interface
- 100% commission free trading
- Cannot build custom trading strategies
Although at first glance you might think that Next represents a good investment, it is important to take a step back. After all, there is no guarantee that Next shares will increase in value over time. On the contrary, there is every chance that you can lose money, whether you’re investing in Next or other companies like Boohoo shares.
With this in mind, we would suggest reading through the following sections to gain a better understanding of what the future holds for Next shares.
Next is a UK retailer that specializes in fashion for men, women, and children. The retailer is primarily based on the UK high street, with over 500 stores. Next also has exposure in several overseas markets. Across Asia, the Middle East, and Europe – the firm has over 200 stores in operation. Its portfolio of UK and international shops are supported by over 40,000 employees. In terms of its shares, Next became a publicly-listed organization in the mid-1980s.
It was listed on the London Stock Exchange, which is where the shares remain today. At the time of writing, the firm has a market capitalization of over £7.6 billion. As a result, it is a major UK company that forms part of the FTSE 100 index. Taking a trip down memory lane, Next shares were priced at just 252p in 1988. Had you bought the shares back then, you would now be looking to unprecedented gains.
For example, the shares hit a stock price of just under 8,000p in 2015. This works out at an ROI of over 3,000%. In more recent times, the stocks have since cooled-off. For example, Next went on a downward trajectory after its 2015 peak, hitting lows of around 3,800p. However, the fortunes of the company quickly made a U-turn back in the right direction, with Next shares hitting 7,358p in January 2020. However, what was to follow was the wider impact of the COV-19 pandemic.
After all, with government lockdowns present both in the UK and overseas, Next stores remained closed for a number of months. In turn, the value of its share hit 52-week lows of 3,311p in March. In just two months, this represents a decline of over 55%. On the flip side, it is crucial to note that Next shares have bounced back very, very quickly. At the time of writing, the Next share price is 5,772p. This translates into a recovery of over 74% in the space of four and a half months.
If you’re seeking value shares that also generate income, you’ll be pleased to know that Next has a long-standing history of meeting its dividend distribution policy. However, that was until the coronavirus pandemic came to fruition. In response, management at Next was forced to suspend dividends until further notice.
The company also announced that it would be postponing its much-anticipated share buyback scheme. Although this is no doubt a frustration for stockholders, it is important to remember that virtually all Next stores were closed during the wider lockdown, so revenue generation was left exclusively to its online business.
As important as it is to look at the historical value of Next shares, investors are more concerned with the here and now. That is to say, does Next represent a good investment based on its current share price? To help answer this question, below we discuss some of the key points that you need to consider before you buy Next shares.
Positive COV-19 Recovery
On the one hand, it was nothing short of a capitulation for Next shares once the coronavirus pandemic came into full force. This does make sense when you consider the firm’s core business division – high street retail stores. As a result, Next plc shares dropped by 55% in the space in the just two and a half months.
However, those that kept faith in the firm by purchasing shares towards their March 2020 lows are now looking at exceptional gains. This is because Next shares have since recovered by over 74%. To illustrate just how positive this is for Next shareholders, it is important to compare the firm’s recovery with the wider FTSE 100 index. During the same period, the index has covered by just 16%.
This means that Next has outperformed the UK stock markets by a considerable amount. Looking at one of the firm’s main competitors on the high street – Marks and Spencer, its recovery is even more impressive. This is because Marks and Spencer shares went from 2020 lows of 73p to a current share price of 106p. Although this still represents gains of 45%, the recovery is much smaller in comparison to Next.
Sales not as Unfavorable as the Markets had Anticipated
Leading on from the above section, much of the recovery seen by Next in response to the COV-19 pandemic is due to the firm’s better-than-expected results. That is to say, sales at Next were not as heavily impacted by the lockdown as the markets had anticipated. For example, management at Next recently announced that it expects 2020 sales to hit the £195 million-mark.
The markets had projected just £120 million. In Q2 specifically, sales were down 28%. However, Next itself had projected a drop in excess of 56%. In its online division, sales were actually up 9% in Q2. Naturally, an increase in online sales was something experienced by most high street retailers, so it will interesting to see what the figures present in Q3.
Growing Online Business
The general consensus is that Next is well position to weather the ongoing coronavirus storm. At the forefront of this is the firm’s ever-growing investment into its online division. Management understands that online retail is slowly but surely leaving bulky, expensive high street stores behind.
As such, Next has been increasing its exposure to the online sector for some time now. Crucially, this means that the potential of a re-visit to lockdown shouldn’t hurt Next as much as its main competitors. This became evident in how quickly the shares recovered.
Efficient Stock Management
Stock management is one of the biggest threats facing UK retailers at present. In simple terms, a reduction in sales means that retailers are sitting on increased levels of stock. This ultimately acts as a major drag on cash flow recourses. However, in the case of Next, its most recent earnings report noted that surplus stock levels are up just 1% in comparison to the prior year.
Buyback and Next Shares Dividends Will Resume in the Future
Not only do you have the chance to buy Next shares at a major discount (in comparison to pre-COV-19 prices), but you can also position yourself nicely for a return to the firm’s stock buyback and dividend plans.
Regarding the former, there was a much-anticipated share buyback in the making before the COV-19 pandemic came to light.
This can be highly beneficial for shareholders, as it typically results in an increase in stock price. Although it remains to be seen when this will be the case, it is hoped that the buyback scheme will come into play within the next 1-2 years.
Additionally, Next has a long-standing history of paying dividends. Although it was forced to suspend its distribution policy in Q2 2020, this won’t be the case forever.
Step 3: Open an Account and Deposit Funds
If you have performed adequate research and wish to buy Next shares right now, you will need to open an account with your chosen stock broker. To show you just how simple the process is, we are going to walk you through the steps required with FCA broker eToro, which offers one of the best share dealing accounts in the UK.
So, in order to get started with eToro, you need to head over to the platform’s homepage. Upon electing to open an account, you will need to enter some personal information.
- Full name
- Date of birth
- Home address
- National insurance number
- Contact details
- Username and password
You will need to confirm your email address and mobile number. After that, you will be asked to upload some ID. This is to ensure eToro complies with the regulations set out by the FCA.
- Passport or driver’s license
- And a recent utility bill or bank account statement
You will then need to deposit some funds at eToro. Although you can invest just $50 in Next, you will need to deposit at least $200. This works out at about £160.
You can choose from a:
- Debit Card
- Credit Card
- UK Bank Transfer
Take note, all deposit methods at eToro come with a 0.5% fee. This is a currency conversion fee – as your GBP deposit will be exchanged to USD.
Now that you have opened an account and made a deposit, you can proceed to buy Next shares. At the top of the screen you will see a search box. Enter ‘Next’ and click on the third result that pops up – just like the screenshot below.
You will then need to click on the ‘Trade’ button, which will populate the order box for Next plc shares.
You then need to enter the amount that you wish to invest in stocks of Next. As noted above, the minimum you can invest is $50.
To complete your investment in Next shares, click on the ‘Open Trade’ button.
In summary, the wider FTSE 100 has had a rough time since the COV-19 pandemic came to fruition. This is especially the case for those active on the UK high street. However, the recovery seen by Next since its share hit lows of 3,311p has been remarkable.
In fact – at a current price of 5,772p – Next shares have increased by over 74% since March. There is still room for movement, too – as Next shares were priced at 7,358p in January.
With that in mind, if you do want to buy shares in Next right now, eToro allows you to do this on a commission-free basis. In fact, the process of opening an account, depositing funds, and making an investment can be completed in less than 10 minutes at the FCA broker.
Simply click the link below to get started!
67% of retail investor accounts lose money when trading CFDs with this provider.
How much were Next shares when the firm first went public?
Next went public in the mid-1980s. Back then, you could have got your hands on the shares at around the 252p-mark.
What stock exchange is Next listed on?
With its headquarters in the UK, Next has its primary listing on the London Stock Exchange. With a market capitalization of well over £7 billion, it is also a constituent of the FTSE 100.
Does Next pay dividends?
Next had a long-standing track record of paying dividends before the COV-19 lockdown. However, management had to suspend dividends in Q2. This will remain the case until further notice.
Why are Next shares so expensive?
At a current stock price of 5,772p, this actually makes Next one of the most expensive shares on the FTSE 100. However, this won't be an issue when using an online broker that supported fractional ownership. For example, eToro allows you to invest from just $50 into Next. This is the case irrespective of how much the shares are worth.
Where can I buy Next shares?
You can buy shares in Next online from a broker that gives you access to the London Stock Exchange. If you want to do this in the most cost-effective way possible, eToro allows you to invest on a commission-free basis.