3 Great Shares For A Beginners’ Portfolio: GlaxoSmithKline plc, Schroders plc & Latchways plc

GlaxoSmithKline plc (LON:GSK), Schroders plc (LON:SDR) and Latchways plc (LON:LTC) are three shares that could help transform your wealth.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

gskMulti-billionaire Warren Buffett, probably the world’s most famous and successful investor, follows a strategy of buying great businesses with a view to holding his shares ‘forever’.

What’s good enough for octogenarian Buffett should be good enough for an investor just starting out on the road to long-term wealth accumulation.

Today, I’m going to tell you why I think GlaxoSmithKline (LSE: GSK) (NYSE: GSK.US), Schroders (LSE: SDR) and Latchways (LSE: LTC) are worth consideration for a beginner’s portfolio.


Pharmaceuticals giant GlaxoSmithKline has a market capitalisation of £70bn, and is the fourth-largest company in the FTSE 100. The company is a ‘core’ holding for many investors.

Size, prodigious cash generation and the ‘non-cyclical’ nature of the pharma industry make Glaxo a relatively steady share through all economic conditions. The company has a great dividend history, and the prospective dividend yield is currently 5.7% at a share price of 1,434p. Reinvest the dividends to buy more shares year after year and the value of your investment should snowball over the long term.


Asset manager Schroders (founded in 1804) is also in the FTSE 100. With a market capitalisation of £6.5bn, Schroders may not be in the ‘megacap’ league of Glaxo, but I believe it has attractions for long-term investors.

The nature of Schroders’ business means its shares tend to exaggerate the returns of the wider market. Shareholders have to steel themselves when markets wobble, but because markets rise over the long term (multi-decades) the reward should be outsize returns if Schroders continues to do what it’s done successfully for over 200 years.

Unusually, the company has two classes of share: voting shares (ticker SDR) and non-voting shares (LSE: SDRC). Small private investors have little to gain from holding the voting shares. The non-voting shares are cheaper (currently 1,851p versus 2,435p for the voting shares), and provide a bigger dividend yield: 3.7% versus 2.8%.


Smaller companies are considered inherently more risky than big companies — but they also have potential to grow faster. Furthermore, some smaller businesses have the kind of qualities Buffett looks for, and even a beginner may want to consider including a smattering of such shares in a portfolio.

Latchways, which has a market capitalisation of £109m, is the global leader in fall protection equipment for people working at height. Safety is not something employers can afford to skimp on. Latchways’ reputation as the number one — built over 30 years — and increasing safety regulation around the world, give the company plenty of scope to continue growing strongly.

Recent cyclical weakness is some of Latchways’ markets, notably commercial construction in parts of Europe, means investors today can buy the shares at a lower price (965p) than would otherwise have been the case. It also means that the prospective dividend yield (4.4%) is higher than usual.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be considered so you should consider taking independent financial advice.

G A Chester has no position in any shares mentioned. The Motley Fool UK has recommended GlaxoSmithKline. The Motley Fool UK owns shares of Latchways. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

A pastel colored growing graph with rising rocket.
Investing Articles

3 top shares for the ongoing stock market recovery

Although messy, I think the stock market recovery is beginning and that's why I'm now buying shares such as these.

Read more »

Mature people enjoying time together during road trip
Investing Articles

5 UK shares I bought for income of 9.5% a year

We recently bought these five cheap UK shares for their generous dividend yields. These cash payouts range from nearly 7%…

Read more »

Bearded man writing on notepad in front of computer
Investing Articles

Is there still time to buy Scottish Mortgage shares?

The Scottish Mortgage share price has risen strongly in recent weeks. Should I pile into the FTSE 100 momentum stock…

Read more »

Smiling white woman holding iPhone with Airpods in ear
Investing Articles

Why I’d start buying shares with £250 today not £20,000 in future!

Is it worth waiting to start buying shares until one has more money to invest? Our writer doesn't think so…

Read more »

Playful senior couple in aprons dancing and smiling while preparing healthy dinner at home
Investing Articles

I’ve bought Diageo shares to boost my long-term passive income!

I plan to hold on to my Diageo shares well into retirement. Here's why I think it's a top stock…

Read more »

New virtual money concept, Gold Bitcoins
Investing Articles

Down 61%, are Argo Blockchain shares worth buying?

Argo Blockchain shares have tumbled in value. As a shareholder, Christopher Ruane considers what might come next for the business…

Read more »

Smiling young man sitting in cafe and checking messages, with his laptop in front of him.
Investing Articles

3 UK dividend stocks with yields over 10%

These dividend stocks are the highest yielders on the UK market, says Roland Head. But how safe are these generous…

Read more »

Couple relaxing on a beach in front of a sunset
Investing Articles

I’d start buying shares for passive income with this pair

Our writer is looking to earn passive income via investing, and here are two leading stocks he might buy.

Read more »