TalkTalk is a UK-Based telecommunications service provider that is offering a range of services including internet access, mobile network, pay television, etc. This company has over four million customers in the UK and is one of the largest telephone and broadband suppliers in the nation.
Over the last year, Talktalk shares have been extremely volatile, mainly due to the pandemic concerns, the Toscafund deal, and poor quarterly earnings results. However, it’s also worth paying attention to the spike in TalkTalk’s share price since August and the positive momentum that was build up over the last months.
So, if you are a UK investor looking to buy shares of TalkTalk, this guide is for you. We’ll analyze the TalkTalk share price performance, find out if it’s a good time to add TalkTalk shares to your portfolio, recommend the best brokers in the UK that offer you to buy TalkTalk shares, and show you the process to place the first order in the market.
- 1 How to Buy TalkTalk Shares in the UK – with 0% Commission
- 2 Step 2: Research TalkTalk Shares
- 3 What is TalkTalk?
- 4 How Much Are TalkTalk Shares Worth? TalkTalk Share Price History
- 5 TalkTalk Shares Dividend Information
- 6 Should I Buy TalkTalk Shares? TalkTalk Shares Forecast
- 7 Step 3: Open an Account and Deposit Funds
- 8 Step 4: Buy TalkTalk Shares
- 9 TalkTalk Shares Buy or Sell?
- 10 The Verdict
- 11 eToro – Buy TalkTalk Shares With No Commission
- 12 FAQs
Shares of TalkTalk Group are listed and trade on the London Stock Exchange under the ticker symbol LON: TALK. The telecommunications company is also a constituent of the FTSE 250 index, which means it is among the most popular shares in the UK. Bearing that in mind, finding a UK broker that offers TalkTalk shares and at the same time meets your trading needs is crucial for managing a successful investment portfolio.
To help find the right direction, below we recommend two of the most popular UK stock brokers that offer, in addition to many other financial instruments, shares of TalkTalk.
1. eToro – Buy TalkTalk Shares with Zero Commission
eToro is among the most popular trading platforms in the market today, with more than 12 million users on the largest social trading network in the world. The UK-based broker offers an extensive range of shares from 17 different stock exchanges including the London Stock Market. This includes TalkTalk shares but also other popular shares like Amazon, Facebook, Tesla, Pfizer, and many more.
Generally, eToro is a CFD platform, meaning it allows users to speculate on the price of an asset without actually owning it. As such, you’ll be able to trade with a leverage ratio of 5:1 and pay a floating/variable spread only. There are no entry and exit trading commissions as mostly happening with traditional brokerage firms. All in all, eToro is one of the most cost-effective platforms when it comes to trading costs.
Best of all, eToro offers social trading networking. The platform’s interface is very similar to any social platform you already know, so you won’t have to spend much to become an expert. Using the platform is extremely simple and even if you are not a professional trader, you can find your way around. For example, you can use the CopyTrade tool that enables you to choose another trader based on the trading performance and copy the trades he/she makes.
Finally, eToro is considered safe because its UK trading business is regulated by a top-tier financial authority, the FCA. Moreover, investors that deposit funds to the platform are fully covered by the FSCS with up to £85,000.
- Offers commission free trading
- You’ll get access to shares, ETFs, currency pairs, commodities, indices and cryptocurrencies
- Allows you to buy shares outright or CFDs
- Supports fractional trading
- Social trading platform
- Offers the CopyTrading tool
- Accepts a wide range of payment methods, including PayPal
- User-friendly web platform and mobile trading app
- Regulated by the FCA
- Limited technical analysis charting package and trading tools for advanced traders
67% of retail investor accounts lose money when trading CFDs with this provider.
2. Fineco Bank – Low-Cost UK Share Dealing Platform
Our second choice of broker for buying UK shares is Fineco Bank, an Italian online trading company that offers access to thousands of shares, FX currency pairs, ETFs, indices, commodities, bonds, and options. Fineco is more suited for traders that are looking for a professional trading platform. The broker offers the PowerDesk workstation, which is one of the favorite trading platforms among expert day trades.
Overall, Fineco Bank gives investors access to a huge range of markets and products including shares from top stock exchanges. For TalkTalk shares, the broker allows users to buy shares via the LSE with a fixed commission of £2.95 per trade. For US and European share trading, Fineco charges a fee of just €/$3.95.
Apart from stocks, Fineco Banks also offers some of the most exotic markets and products so you’ll be able to trade options, futures, and ETFs. The broker is also offering a demo account for potential investors that want to test the platform before risking real capital.
- Charges a fixed rate of £2.95 per trade when buying and selling shares
- Access to thousands of UK and international shares
- Deposit funds with a UK bank account
- Heavily regulated, including an FCA license
- Suitable for both newbies and seasoned investors
- Great research and educational department
- Established way back in 1999
- Does not accept deposits and withdrawals via debit/credit cards
- Still relatively unheard of in the UK investment scene
Before you decide to make an investment in TalkTalk shares, it’s important to know the company’s background, financial status, and historical share price performance. To help you get more information about this company, we are now going to take a closer look at the company’s profile and its future prospects.
What is TalkTalk?
TalkTalk Group is a British company that offers several communication services like pay television, telecommunications, broadband, and mobile services. It was originally founded in 2003 as a subsidiary company of Carphone Warehouse and became an independent company in 2010 after the two companies demerged. TalkTalk Group, which is listed on the London Stock Exchange and is a constituent of the prestigious FTSE 250 Index, has more than 4 million customers in the United Kingdom.
TalkTalk was founded in 2003 as a provider of fixed-line telephone services, but since then the company has grown to offer a wider range of telecommunication services. As of 2020, TalkTalk has nearly 3000 employees and it is one of the largest broadband providers in the UK. In 2010, TalkTalk was separated from Carphone Warehouse and become an independent public company listed on the London Stock Exchange.
The company entered the public stock market with a share price of 126p per share, and following two years of range trading, TalkTalk shares soared to an all-time high of 403p in May 2015. Since then, shares of TalkTalk fell around 75% over the last five years, including a 20% drop in value since the beginning of the year, which has led the company’s management to agree to discuss a £1.1bn takeover bid in October.
In July, the TalkTalk share price reached an all-time lowest mark of 69.5p due to poor quarterly results. It has reported that its revenue fell 7.5% in the first quarter, mostly due to the Covid-19 pandemic. However, since the stock reached that level it has gained around 37% on the news that it has received a £1.1bn takeover bid from investment asset manager Toscafund.
TalkTalk Share Fundamentals – Market Cap, P/E Ratio and EPS
TalkTalk currently has a market capitalisation of £1.1bn. In its annual report, TalkTalk has reported a basic and diluted EPS of 5.3p per share, a decrease from 6.0p in 2019.
The company has a price-to-earnings (P/E) ratio of 7.08, which is below the 14.64 average of FTSE 250 companies and below the average in the industry of around 18. This figure makes TalkTalk a good investment in the case the company will generate a slightly higher revenue growth in the next year.
TalkTalk Group pays out a dividend yield of around 2.7%, which is not at the highest levels of paying dividend stocks but is a positive factor to consider at times of zero interest rates policy in the UK and worldwide. The next dividend payment is expected on August 7 2020.
There’s no doubt that TalkTalk is currently in a critical situation with the non-binding takeover proposal from Toscafund and the legal issues with Openreach. On top of that, TalkTalk shares fell hard due to the Covid-19 pandemic. But, all things considered, there’s a possibility that TalkTalk’s share price is trading at discount right now. Let see what are the things that might convince you to buy TalkTalk shares.
The discussion and rumors about a TalkTalk takeover is not a new thing. Companies like Vodafone and Virgin Media have been engaged with TalkTalk to take over it, but it seems that the recent agreement on a £1.8bn Toscafund takeover deal is very close now. Generally, news on takeover bids is always good news and might give a boost to TalkTalk’s share price before the deal is finalized.
Lately, there are reports that Toscfund and TalkTalk have reached an agreement on a 97p per share takeover. The deal means that Toscfund is also willing to pay TalkTalk’s debt, which is a great incentive for potential investors to take advantage of the takeover offer.
A Stable Dividend Stock
While many big companies have canceled their dividend payments due to the Covid-19 uncertainty, TalkTalk was one of the few companies that continued paying dividends over the past year. At the time of writing, TalkTalk has a dividend yield of 2.7% and it has a payout percentage of 19% of its profit as dividends over the last year. Overall, TalkTalk remains among the most stable dividend stocks in the UK stock market, with growth expectations in its dividend yield in the upcoming years.
A Robust Financial Position
Despite the ongoing discussions that TalkTalk is in a difficult financial condition, the company has reported a 9.7% rise in full-year core earnings to £260mn, which was mostly driven by its fibre broadband customer base. TalkTalk is estimated to finish the current year with a drop in revenues of 3.23% from the previous year. Taking this data into consideration, it seems that the fall in TalkTalk’s share price in March was a bit of overreaction.
In addition, TalkTalk has strengthened its financial status in March when it sold its Fibre Assets Business to CityFibre for £206mn.
Step 3: Open an Account and Deposit Funds
By now, you should have enough information to decide if you want to buy TalkTalk shares. If you are planning to do so, we are now going to show you the full buying process via eToro, which offers zero commission trading on thousands of shares including TalkTalk.
To get started, navigate to eToro’s website and complete the free online trading account registration process. From the homepage, click on the Join Now button and submit the necessary details that include your personal information, financial background, and your trading experience.
Next, you’ll be asked to verify your identity before you start trading in order to comply with the UK’s financial regulator, the Financial Conduct Authority. To complete this step, you’ll need to upload a copy of your passport or driver’s license along with a copy of a recent financial statement or utility bill.
Then, once you receive an email from eToro’s team that your account has been approved, you can fund your new trading account by using one of these payment methods:
- Debit Card
- Credit Card
- UK Bank Transfer
Deposits at eToro via online banking can take up to 3 business days and 4-7 business days via bank wire transfer. As soon as you have funded your account, you can begin making online trades.
To start the buying process, go to eToro’s trading dashboard and search for TalkTalk shares in the search bar at the top of the screen.
On the first result that pops up in the drop-down menu, click on Trade.
In the order form, set the amount you wish to invest in TalkTalk and click on the ‘Place Order’ button. Bear in mind that you are able to place an order by clicking on the Set Order button when the market is closed, and the order will be executed when the market reopens.
The bottom line, the most crucial factor right now to determine TalkTalk’s future price is the news about the deal with Taoscafund Asset Management. In case the deal is concluded, it is very likely that TalkTalk shares will continue the upward trend. On top of that, news of a rival bid (like Rottweiler) at a higher price of around 115p could push the TalkTalk share price even higher.
Right now, the future looks promising for the company and for potential investors as well. TalkTalk is the fourth-largest broadband provider in the UK, with more than four million customers and its PE ratio indicates that it has to generate a small revenue growth next year for the share to be trading at a higher valuation.
TalkTalk’s share price is down 75% over the last five years, including a fall of over 20% from the start of the year. But as Warren Buffet once said: “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price”. And, there are many reasons right now to evaluate TalkTalk as a wonderful company that is trading at a fair price. Investors can not only collect a dividend yield but also and get a nice return in the share price over the years ahead.
If you ready to buy TalkTalk shares, simply click the link below to get started!
67% of retail investor accounts lose money when trading CFDs with this provider.
Who is the chief executive of TalkTalk?
Tristia Adele Harrison is the chief executive officer of TalkTalk since May 2017.
What stock exchange is TalkTalk listed on?
TalkTalk is listed on several stock exchanges that include the UK, France, and Germany. The company's primary listing is on the London Stock Exchange under the symbol TALK.
Does TalkTalk pay dividends?
Yes, TalkTalk pays annual dividends for shareholders of common stocks. It currently has a dividend yield of 2.7%.
When did TalkTalk go public?
TalkTalk went public in 2010 at a price of 126.5p per share.
Can I invest in TalkTalk via an ISA or SIPP?
Yes, you can buy TalkTalk shares in an ISA or SIPP account in the UK. In fact, given the fact that Talk Talk is a favorite dividend stock, it would be a great addition to your retirement investing portfolio.