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        <title>Computacenter Plc (LSE:CCC) Share Price, History, &amp; News | The Motley Fool UK</title>
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        <description>The Motley Fool UK: Share Tips, Investing and Stock Market News</description>
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	<title>Computacenter Plc (LSE:CCC) Share Price, History, &amp; News | The Motley Fool UK</title>
	<link>https://www.fool.co.uk/tickers/lse-ccc/</link>
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                                <title>2 top stocks to consider buying after this week’s FTSE carnage</title>
                <link>https://www.fool.co.uk/2026/03/21/2-top-stocks-to-consider-buying-after-this-weeks-ftse-carnage/</link>
                                <pubDate>Sat, 21 Mar 2026 08:35:00 +0000</pubDate>
                <dc:creator><![CDATA[Edward Sheldon, CFA]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Value Shares]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1663893</guid>
                                    <description><![CDATA[<p>Investors looking for beaten-up stocks to buy for the long term have a lot of great options after the recent spike in volatility.</p>
<p>The post <a href="https://www.fool.co.uk/2026/03/21/2-top-stocks-to-consider-buying-after-this-weeks-ftse-carnage/">2 top stocks to consider buying after this week’s FTSE carnage</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
]]></description>
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<p>While this week’s market meltdown will no doubt have some investors worried, there will be others who are looking to take advantage of the situation and seeking out beaten-up stocks to buy. This latter group of investors understands that market volatility like this can create brilliant long-term investment opportunities.</p>



<p>Looking for beaten-down shares that have the potential to rebound? Here are two names to check out.</p>



<h2 class="wp-block-heading" id="h-a-blue-chip-ftse-100-name-on-sale">A blue-chip FTSE 100 name ‘on sale’</h2>



<p>First up, we have banking powerhouse <strong>HSBC</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-hsba/">LSE: HSBA</a>). It’s currently trading for around 1,180p, down from 1,400p in late February.</p>



<p>Now, while this is very much a ‘blue-chip’ <strong>FTSE 100</strong> stock, it is a little risky. That&#8217;s because banks are vulnerable to economic weakness and the huge spike in oil prices could potentially lead to a slowdown.</p>



<p>Another risk we need to consider here is AI-related layoffs. These could compromise banks’ mortgage books in the years ahead. But there&#8217;s a plus side to this risk too (more of that below).</p>


<div class="tmf-chart-singleseries" data-title="HSBC Holdings Price" data-ticker="LSE:HSBA" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<p>Looking past these risks, there’s a lot to like here, in my view. For a start, HSBC is focused on higher-growth areas of banking such as wealth management and financial services in Asia.</p>



<p>Second, the company is using the aforementioned AI to become more efficient. Last week, it came to light that the company is planning to shed 20,000 of its own roles in the years ahead.  </p>



<p>Third, it looks cheap after the recent market sell-off. At present, the <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/pe-ratio/">price-to-earnings</a> (P/E) ratio is under 10.</p>



<p>Finally, we now have a <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/dividend-yield/">dividend yield</a> of around 5%. So, there’s a substantial amount of income on offer.</p>



<p>Given all these positives, I believe the stock is worth a closer look right now.</p>



<h2 class="wp-block-heading" id="h-a-ftse-250-stock-for-the-tech-boom">A FTSE 250 stock for the tech boom</h2>



<p>The other stock I want to highlight is <strong>Computacenter</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-ccc/">LSE: CCC</a>). It’s a <strong>FTSE 250</strong> company that helps businesses and government organisations across the world with their IT infrastructure (servers, networking, cybersecurity, etc).</p>



<p>Earlier this year, it was trading above 3,300p. Today, however, it can be snapped up near 2,950p.</p>


<div class="tmf-chart-singleseries" data-title="Computacenter Plc Price" data-ticker="LSE:CCC" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<p>Computacenter has quite a bit of operational momentum at the moment. Because right now, organisations are scrambling to upgrade their IT systems for the AI era.</p>



<p>We can see this in the company’s results for 2025, which were posted earlier this month. For 2025, adjusted operating profit was up 11.3% year on year.</p>



<p>Note that the company ended 2025 with a record product backlog of £7.1bn. This bodes well for near-term performance.</p>



<p>It’s worth pointing out that an economic slowdown is a risk here too – this could see companies spend less on technology. AI is also potentially a risk – in the long run, businesses may be able to bypass companies like this using AI agents.</p>



<p>With the stock trading on a P/E ratio of about 15 and offering a yield of around 2.7, however, I see appeal. I reckon it’s worth considering as a play on the tech boom.</p>
<p>The post <a href="https://www.fool.co.uk/2026/03/21/2-top-stocks-to-consider-buying-after-this-weeks-ftse-carnage/">2 top stocks to consider buying after this week’s FTSE carnage</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>Want to retire? Investing £500 a month in a SIPP unlocks a pension of&#8230;</title>
                <link>https://www.fool.co.uk/2026/02/15/want-to-retire-investing-500-a-month-in-a-sipp-unlocks-a-pension-of/</link>
                                <pubDate>Sun, 15 Feb 2026 07:11:00 +0000</pubDate>
                <dc:creator><![CDATA[Zaven Boyrazian, CFA]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Retirement Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1647348</guid>
                                    <description><![CDATA[<p>The thought of working until 68 sounds depressing. Luckily, with a SIPP, investors can potentially retire over a decade earlier. Here's how.</p>
<p>The post <a href="https://www.fool.co.uk/2026/02/15/want-to-retire-investing-500-a-month-in-a-sipp-unlocks-a-pension-of/">Want to retire? Investing £500 a month in a SIPP unlocks a pension of&#8230;</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                                                                            <content:encoded><![CDATA[
<p>When it comes to building retirement wealth, few tools come close to the power of a Self-Invested Personal Pension (SIPP). Beyond the tax advantages, SIPPs allow investors to tap into the wealth-building potential of the stock market. And with the right investing strategy, it&#8217;s possible to even retire early.</p>



<p>That&#8217;s terrific news for those getting a bit fed up with their job and want to quit working sooner rather than later.</p>



<p>So let&#8217;s say a 40-year-old today wants to quit work just as soon as they can access their SIPP at 57 in 2043 (assuming the age requirement doesn&#8217;t change from 2028 onwards). How much money could be accumulated by starting investing £500 a month from today?</p>



<h2 class="wp-block-heading" id="h-crunching-the-numbers">Crunching the numbers</h2>



<p>In 2025, the <strong>FTSE 100</strong> delivered its strongest returns in over a decade, at over 25%. But sadly, that&#8217;s a bit of an outlier. And historically, the UK stock market&#8217;s generated closer to 8% annualised returns over the long run.</p>



<p>But even at 8%, a SIPP can grow substantially over 17 years. For someone paying the Basic rate of income tax, every £500 deposit will receive 20% tax relief courtesy of the government.</p>



<p>That means instead of £500, an investor will have £625 of investable capital each month. And investing that amount each month at an 8% rate of return will <a href="https://www.fool.co.uk/investing-basics/the-miracle-of-compound-returns/">compound into</a> £269,873 by 2043.</p>



<p>Following the 4% withdrawal rule, that&#8217;s enough to generate a retirement income of £10,795. Combine that with the £12,548 State Pension, and the total comes to £23,343 a year – more than enough to meet minimum retirement living standards even after stopping work early.</p>



<p>That&#8217;s certainly not bad, but by aiming for higher returns through <a href="https://www.fool.co.uk/investing-basics/how-to-invest-in-shares/finding-companies-to-invest-in/">stock picking</a>, investors can potentially do <em>much</em> better.</p>



<p><em>Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.</em></p>



<h2 class="wp-block-heading" id="h-maximising-wealth">Maximising wealth</h2>



<p>Instead of relying on simple index trackers, skilful investors can opt to buy shares of specific individual businesses. Why? Because by exclusively owning the best businesses, a portfolio can earn significantly better returns than 8%. And anyone who spotted the opportunity with <strong>Computacenter</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-ccc/">LSE:CCC</a>) 17 years ago, knows this firsthand.</p>



<p>Following a successful expansion into the US market as well as transitioning beyond just IT reselling to include higher margin value-added services, shareholders of this UK tech enterprise have earned a staggering 3,862% total return.</p>



<p>On a yearly basis, that&#8217;s the equivalent of a 24.2% average – enough to transform £625 a month into a £1.79m SIPP!</p>



<div class="tmf-chart-singleseries" data-title="Computacenter Plc Price" data-ticker="LSE:CCC" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<h2 class="wp-block-heading" id="h-still-worth-considering">Still worth considering?</h2>



<p>With a market-cap of £3.2bn in 2026, it&#8217;s unlikely that Computacenter shares will continue generating a 24.2% annualised return between now and 2043. But that doesn’t mean the growth story&#8217;s over.</p>



<p>Businesses worldwide are rapidly adopting artificial intelligence (AI) technologies, with hyperscaler data centres investing heavily in new infrastructure. That&#8217;s a tailwind Computacenter&#8217;s already been busy capitalising on, driving 32% growth in gross invoiced income in 2025 alone.</p>



<p>That&#8217;s certainly exciting, but it&#8217;s worth remembering that IT spending&#8217;s ultimately cyclical. The AI gold rush will eventually start to slow. And while businesses will undoubtedly continue to need IT-related support and services, cyclical downturns will surely put pressure on both Computacenter&#8217;s share price and dividend.</p>



<p>Nevertheless, with a superb track record of navigating through IT market downturns, investors may still want to consider this business further for their early-retirement SIPP portfolios.</p>
<p>The post <a href="https://www.fool.co.uk/2026/02/15/want-to-retire-investing-500-a-month-in-a-sipp-unlocks-a-pension-of/">Want to retire? Investing £500 a month in a SIPP unlocks a pension of&#8230;</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>Why did this flying FTSE 250 growth stock just jump another 10%?</title>
                <link>https://www.fool.co.uk/2026/01/22/why-did-this-flying-ftse-250-growth-stock-just-jump-another-10/</link>
                                <pubDate>Thu, 22 Jan 2026 12:03:04 +0000</pubDate>
                <dc:creator><![CDATA[Alan Oscroft]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Market Movers]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1637968</guid>
                                    <description><![CDATA[<p>So we expect bigger daily jumps from FTSE 250 stocks than the FTSE 100 when there's good news? This trading update supports the idea.</p>
<p>The post <a href="https://www.fool.co.uk/2026/01/22/why-did-this-flying-ftse-250-growth-stock-just-jump-another-10/">Why did this flying FTSE 250 growth stock just jump another 10%?</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
]]></description>
                                                                                            <content:encoded><![CDATA[
<p><strong>Computacenter</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-ccc/">LSE: CCC</a>) led the <strong>FTSE 250</strong> Thursday morning (22 January) with an early 10% spike. It&#8217;s one of the mid-cap index&#8217;s best growth stocks of the past 12 months, with a 61% gain.</p>



<p>The driver this time is a sparkling trading update ahead of full-year results, announcing a 32% revenue surge at constant currency. The gains are mostly driven by the firm&#8217;s Technology Sourcing division, which saw a 38% gross invoiced income rise.</p>


<div class="tmf-chart-singleseries" data-title="Computacenter Plc Price" data-ticker="LSE:CCC" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<h2 class="wp-block-heading" id="h-ai-profit-potential">AI profit potential</h2>



<p>There was one immediate standout for me. The update said: &#8220;<em>We are particularly pleased with our execution in North America, achieving consistently strong growth throughout the year with both enterprise and hyperscale customers</em>&#8220;.</p>



<p>Hyperscale customers &#8212; I like that bit. Nobody can have missed the AI technology surge. And along with all those souped-up processing chips and large language models, the business needs infrastructure.</p>



<p>Computacenter is all about providing the IT hardware &#8212; the computers, the networks, and all the rest &#8212; that the tech industry runs on. And much of the software to control it it all. It offers strategy, advisory and management services too.</p>



<p>Old-time investors like to hark back to the California gold rush days. Back then, some made it big and some went bust. But the traders selling the picks and shovels pocketed a bundle. Companies like Computacenter are the picks and shovels sellers of the AI revolution.</p>



<h2 class="wp-block-heading" id="h-what-next">What next?</h2>



<p>Full-year results aren&#8217;t due until 26 March, but it sounds like they should be worth waiting for. With this latest announcement, management said &#8220;<em>We now expect adjusted <a href="https://www.fool.co.uk/investing-basics/understanding-company-accounts/the-profit-and-loss-account/" target="_blank" rel="noreferrer noopener">profit before tax</a> for 2025 to be no less than £270m, comfortably ahead of market expectations</em>&#8220;. Analysts had been <a href="https://www.fool.co.uk/investing-basics/understanding-the-market/broker-forecasts/" target="_blank" rel="noreferrer noopener">forecasting</a> between £243m and £259m.</p>



<p>Net funds at the end of December reached £600m, excluding IFRS 16 lease liabilities.</p>



<p>Looking forward to 2026, the board also told us: &#8220;<em>We exited 2025 in a strong position with a committed product order backlog across all geographies at the end of December which is significantly ahead of both our position in December 2024 and at the end of June 2025</em>&#8220;.</p>



<h2 class="wp-block-heading" id="h-cheap-at-the-price">Cheap at the price?</h2>



<p>The biggest opportunity also brings what I see as the main danger. Never mind an AI bubble bursting, if there&#8217;s even a slowing of spend in the coming year it would could see investors turn away from tech stocks. We also have to be keenly aware that trade with the US is not exactly smooth sailing these days.</p>



<p>And Computacenter being a relatively small FTSE 250 company might make large investors less confident. But I think the share price valuation has enough safety to cover the risk. We&#8217;re looking at a forecast price-to-earnings (P/E) ratio of 20 based on the latest share price and my estimated update for the earnings consensus. I think that&#8217;s fair.</p>



<p>Investors who want a piece of the future AI pie, but with less risk than going for the leading-edge <strong>Nasdaq</strong> techies, might do well to consider Computacenter.</p>
<p>The post <a href="https://www.fool.co.uk/2026/01/22/why-did-this-flying-ftse-250-growth-stock-just-jump-another-10/">Why did this flying FTSE 250 growth stock just jump another 10%?</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>Which are the best UK stocks to buy right now? Here&#8217;s what the experts say&#8230;</title>
                <link>https://www.fool.co.uk/2026/01/21/which-are-the-best-uk-stocks-to-buy-right-now-heres-what-the-experts-say/</link>
                                <pubDate>Wed, 21 Jan 2026 09:30:00 +0000</pubDate>
                <dc:creator><![CDATA[Alan Oscroft]]></dc:creator>
                		<category><![CDATA[Growth Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1636902</guid>
                                    <description><![CDATA[<p>Looking for stocks to buy in 2026 to hold for the long term? Me too, and I'm finding experts turning to growth stocks. Here are two.</p>
<p>The post <a href="https://www.fool.co.uk/2026/01/21/which-are-the-best-uk-stocks-to-buy-right-now-heres-what-the-experts-say/">Which are the best UK stocks to buy right now? Here&#8217;s what the experts say&#8230;</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
]]></description>
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<p>AI chatbots can&#8217;t tell us the best stocks to buy, but they can check to see which ones are being talked about. And as we say at <em>The Motley Fool</em>, considering a diverse range of insights makes us better investors.</p>



<p>So I asked ChatGPT to eavesdrop on what stock market analysts are talking about, and that&#8217;s given me a headstart on some ideas to check further for myself.</p>



<h2 class="wp-block-heading" id="h-business-services-leader">Business services leader</h2>


<div class="tmf-chart-singleseries" data-title="Rentokil Initial Plc Price" data-ticker="LSE:RTO" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p><strong>Rentokil Initial</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-rto/">LSE: RTO</a>) is getting a fair bit of love, as 12 out of 18 analysts recommend it as a Buy &#8212; with only one rating it a Sell. Interestingly, it doesn&#8217;t seem to be based on any obvious short-term undervaluation.</p>



<p><a href="https://www.fool.co.uk/investing-basics/understanding-the-market/broker-forecasts/" target="_blank" rel="noreferrer noopener">Analyst forecasts</a> put the shares on a <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/pe-ratio/" target="_blank" rel="noreferrer noopener">price-to-earnings</a> (P/E) ratio of 38, which might look a bit steep. And there&#8217;s a forecast dividend yield of just 2% on the cards. But those same analysts expect Rentokil&#8217;s earnings to ramp up over the next few years &#8212; growing 60% between 2024 and 2027.</p>



<p>In just three years, that would be quite some performance. And it could drop that P/E to 24, which looks better value for a solid growth stock.</p>



<p>It comes on the back of a predicted surge in the pest control business. Some are predicting 5%-6% annual global market growth. It&#8217;s all about rising wealth and a growing need for urban hygiene. Rentokil also has its fingers in a number of business services pies around the globe.</p>



<p>So is it really one of the best stocks to buy now? Today&#8217;s valuation is the biggest drawback for me. But it&#8217;s possibly the best in its field, and I rate it a definite long-term consideration.</p>



<h2 class="wp-block-heading" id="h-it-infrastructure-demand">IT infrastructure demand</h2>


<div class="tmf-chart-singleseries" data-title="Computacenter Plc Price" data-ticker="LSE:CCC" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p><strong>Computercenter</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-ccc/">LSE: CCC</a>) is also raising investor interest. Again, it&#8217;s not much of a dividend stock with a forward yield of 2.3%. But with AI advances driving increasing demand for computer and network-related infrastructure, is a P/E of 19 too high? And what if it drops to 16 by 2027 as analysts predict?</p>



<p>With earnings expected to grow close to 30% in the next three years, I could see that as cheap. Especially when we see the high growth stock valuations of tech companies closer to the leading edge of AI. There&#8217;s one thing I particularly like about a company like Computacenter&#8230; whoever wins the AI wars, everyone will need the equipment, the connections, and all the rest of the infrastructure.</p>



<p>It is however, a very competitive business. And if any AI bubble really does burst as some fear, the fallout could cause some pain. The company also cautioned us, at Q3 time, of &#8220;<em>the ongoing uncertain geopolitical and macroeconomic backdrop</em>&#8220;.</p>



<p>But the update also spoke of &#8220;<em>strong momentum in North America driven by continued volume growth with both enterprise and hyperscale customers</em>&#8220;. And that could be key to long-term growth.</p>



<p>The potential IT demand has to make this a stock to consider buying in 2026 too.</p>



<p></p>
<p>The post <a href="https://www.fool.co.uk/2026/01/21/which-are-the-best-uk-stocks-to-buy-right-now-heres-what-the-experts-say/">Which are the best UK stocks to buy right now? Here&#8217;s what the experts say&#8230;</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>How to aim for a £12k second income starting with a 20k ISA</title>
                <link>https://www.fool.co.uk/2025/12/07/how-to-aim-for-a-12k-second-income-starting-with-a-20k-isa/</link>
                                <pubDate>Sun, 07 Dec 2025 08:11:00 +0000</pubDate>
                <dc:creator><![CDATA[Zaven Boyrazian, CFA]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Investing For Beginners]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1613211</guid>
                                    <description><![CDATA[<p>With inflation and taxes on the rise, having a tax-free second income is now more important than ever. Zaven Boyrazian explains how it’s possible.</p>
<p>The post <a href="https://www.fool.co.uk/2025/12/07/how-to-aim-for-a-12k-second-income-starting-with-a-20k-isa/">How to aim for a £12k second income starting with a 20k ISA</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>Earning a second income in an ISA has become more critical than ever. Apart from higher inflation underscoring the need for multiple income streams, the latest tax hikes in the Autumn Budget are putting even more pressure on many households.</p>



<p>This is where dividends come to the rescue. While investing in the stock market isn’t risk-free, it does open the door to many potentially lucrative opportunities – many of which require minimal effort to exploit. And best of all, by using a Stocks and Shares ISA, all of it can be earned entirely tax-free.</p>



<p>With that in mind, let’s explore how investors can aim to transform a £20,000 ISA into a £12,000 tax-free passive income.</p>



<p><em>Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.</em></p>



<h2 class="wp-block-heading" id="h-making-a-plan">Making a plan</h2>



<p>On average, dividend-paying UK shares offer a yield close to 4%. That means investing £20,000 would unlock an £800 second income overnight.</p>



<p>It’s certainly a nice start, but it’s a far cry from the £12,000 target. That’s why, instead of taking these profits right away, it might be smarter to let them automatically reinvest, <a href="https://www.fool.co.uk/investing-basics/the-miracle-of-compound-returns/">compounding the wealth-building process</a>.</p>



<p>When combined with capital gains, UK shares have historically generated a total average annualised return close to 8%. And £20,000 left to compound at this rate for 34 years would grow into £300,000 – enough to unlock that £12,000 passive income at a 4% yield.</p>



<p>Of course, waiting around for over three decades isn’t a lot of fun. So let’s speed the process up with some small monthly top-ups.</p>



<p>By investing a further £250 each month, the timeline is slashed to just 22 years. Those able to contribute £500 each month would be able to reap the rewards in just over 17 years.</p>



<p>But we can still speed this up even further.</p>



<h2 class="wp-block-heading" id="h-picking-winning-investments">Picking winning investments</h2>



<p>While the stock market might have generated an average return of 8%, there are plenty of investments that have vastly outperformed. And those who can <a href="https://www.fool.co.uk/investing-basics/how-to-invest-in-shares/finding-companies-to-invest-in/">identify these winners</a> early can go on to build phenomenal levels of wealth.</p>



<p>Take <strong>Computacenter</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-ccc/">LSE:CCC</a>) as a prime example to consider.</p>



<p>Over the last 15 years, the IT services enterprise secured its critical position within the technology value chain for businesses looking to digitalise and modernise their operations. The result? Shareholders who reinvested their dividends have earned a 1,117% total return since December 2010.</p>



<div class="tmf-chart-singleseries" data-title="Computacenter Plc Price" data-ticker="LSE:CCC" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<p>That translates into an 18.1% average annualised return. And it’s enough to transform a £20,000 ISA into £300,000 with £250 monthly top-ups in just 12 years instead of 22.</p>



<p>Today, the business continues to enjoy strong momentum, particularly in North America, where hyperscalers continue to invest aggressively in AI infrastructure. As such, the firm’s order book continues to expand while free cash flow is on the rise, resulting in ever-increasing dividends and buybacks.</p>



<p>Of course, even with its strengths, Computacenter still has risks. The competitive landscape for IT sourcing is growing increasingly intense. And if macro uncertainties dampen customer demand, delays in IT spending could start to emerge, harming the group’s performance.</p>



<p>Nevertheless, with a stellar track record of navigating through both the peaks and troughs of the IT market cycle, Computacenter is definitely a stock I think is worth considering when building a second income portfolio. And it’s not the only enterprise I’ve got on my radar.</p>
<p>The post <a href="https://www.fool.co.uk/2025/12/07/how-to-aim-for-a-12k-second-income-starting-with-a-20k-isa/">How to aim for a £12k second income starting with a 20k ISA</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>Prediction: these dividend shares will provide higher returns than BT over the next 5 years</title>
                <link>https://www.fool.co.uk/2025/11/09/prediction-these-dividend-shares-will-provide-higher-returns-than-bt-over-the-next-5-years/</link>
                                <pubDate>Sun, 09 Nov 2025 06:01:00 +0000</pubDate>
                <dc:creator><![CDATA[Edward Sheldon, CFA]]></dc:creator>
                		<category><![CDATA[Dividend Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1601216</guid>
                                    <description><![CDATA[<p>BT shares can be found in many UK investor portfolios. However, Edward Sheldon believes investors may be able to generate higher returns elsewhere.</p>
<p>The post <a href="https://www.fool.co.uk/2025/11/09/prediction-these-dividend-shares-will-provide-higher-returns-than-bt-over-the-next-5-years/">Prediction: these dividend shares will provide higher returns than BT over the next 5 years</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p><strong>BT</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-bt-a/">LSE: BT.A</a>) shares are a popular investment in the UK. And I can understand why – this is a company that&#8217;s been around for ages, is a major player in the UK telecoms space, and pays decent dividends.</p>



<p>I reckon investors can do better than BT however. With that in mind, here are two shares I believe will outperform the telecoms stock over the next five years.</p>



<h2 class="wp-block-heading" id="h-what-s-wrong-with-bt-shares">What’s wrong with BT shares?</h2>



<p>At first glance, BT shares appear to have a lot going for them. At 187p, they&#8217;re trading on a forward-looking <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/pe-ratio/">price-to-earnings</a> (P/E) ratio of just 10, so they’re quite cheap. As for the dividend yield, it’s about 4.6%. So there’s potential for a decent level of income here.</p>



<p>Dig deeper however, and things don’t look quite so attractive. Take revenue growth (a key driver of long-term returns), for example – it’s non-existent. As for the balance sheet, it remains loaded with debt. That means interest payments are going to take a chunk out of profits.</p>



<p>Speaking of profitability, this is very low – over the last five years return on capital employed (ROCE) has averaged just 6%. Generally speaking, companies with a high ROCE (eg 15%+) tend to be much better long-term investments than those with low ROCEs.</p>



<h2 class="wp-block-heading" id="h-more-growth-potential">More growth potential</h2>



<p>So what stocks could potentially beat BT over the next five years in my view? Well, one is <strong>FTSE 250</strong> stock <strong>IG Group</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-igg/">LSE: IGG</a>), a provider of trading and investment platforms.</p>



<p>It trades on roughly the same P/E ratio as BT. The yield&#8217;s quite similar too (4.4%).</p>



<p>I see a lot more growth potential here though. Not only should this company benefit from volatile markets in the years ahead (ie more trading activity) but rising markets should boost income from investment management services (note that it owns Freetrade).</p>



<p>It’s also far more profitable. Over the last five years, ROCE has averaged 23%.</p>


<div class="tmf-chart-singleseries" data-title="IG Group Holdings Price" data-ticker="LSE:IGG" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<p>A risk here is competition. Today, the trading and investment markets are fiercely competitive and IG&#8217;s facing competition from the likes of Robinhood and Trading 212.</p>



<p>I like the risk/reward skew though. In my view, this stock&#8217;s worth considering as a <a href="https://www.fool.co.uk/investing-basics/getting-started-in-investing/foolish-investing-taking-the-long-term-approach/">long-term</a> investment.</p>



<h2 class="wp-block-heading" id="h-far-more-profitable-than-bt">Far more profitable than BT</h2>



<p>Another stock with more potential, in my view, is <strong>Computacente</strong>r (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-ccc/">LSE: CCC</a>). It’s a leading provider of IT solutions to public and private organisations.</p>



<p>I reckon this company is really well placed to benefit from the digital transformation trend. It can help organisations with everything from artificial intelligence (AI) to cybersecurity.</p>



<p>Now, this stock&#8217;s more expensive than BT. The P/E ratio here is 17.5. As for the yield, it’s lower than BT’s. Currently, it’s about 2.5%.</p>


<div class="tmf-chart-singleseries" data-title="Computacenter Plc Price" data-ticker="LSE:CCC" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<p>I wouldn’t be put off by these metrics however. This company&#8217;s growing at a much faster rate than BT – over the last five years, revenue&#8217;s climbed about 40%. It’s also far more profitable (five-year average ROCE of 25%) and sports a much stronger balance sheet.</p>



<p>Of course, a slowdown in tech spending&#8217;s a risk here. This could occur if the economy takes a downturn.</p>



<p>Taking a five-year view though, I’m optimistic this company will see solid growth. I think it’s worth considering as an alternative to BT.</p>



<p>But others here at <em>The Motley Fool</em> could have different opinions…</p>
<p>The post <a href="https://www.fool.co.uk/2025/11/09/prediction-these-dividend-shares-will-provide-higher-returns-than-bt-over-the-next-5-years/">Prediction: these dividend shares will provide higher returns than BT over the next 5 years</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>3 magnificent FTSE 250 stocks to consider for growth and dividends</title>
                <link>https://www.fool.co.uk/2025/09/22/3-magnificent-ftse-250-stocks-to-consider-for-growth-and-dividends/</link>
                                <pubDate>Mon, 22 Sep 2025 05:40:00 +0000</pubDate>
                <dc:creator><![CDATA[Edward Sheldon, CFA]]></dc:creator>
                		<category><![CDATA[Growth Shares]]></category>
		<category><![CDATA[Investing Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1578798</guid>
                                    <description><![CDATA[<p>Edward Sheldon highlights three FTSE 250 stocks that have momentum and look capable of providing market-beating returns in the years ahead.</p>
<p>The post <a href="https://www.fool.co.uk/2025/09/22/3-magnificent-ftse-250-stocks-to-consider-for-growth-and-dividends/">3 magnificent FTSE 250 stocks to consider for growth and dividends</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>The <strong>FTSE 250</strong> is throwing up some magnificent opportunities for investors right now. From financials to tech stocks, there are a lot of shares that are worth a closer look.</p>



<p>Here, I’m going to highlight three stocks in the index that appear to have the potential to generate both significant gains and income in the years ahead. In my view, all three are worth considering as <a href="https://www.fool.co.uk/investing-basics/getting-started-in-investing/foolish-investing-taking-the-long-term-approach/">long-term</a> investments today.</p>



<h2 class="wp-block-heading" id="h-a-play-on-market-volatility">A play on market volatility</h2>



<p>First up, we have <strong>IG Group</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-igg/">LSE: IGG</a>). It’s a provider of retail investment and trading platforms.</p>



<p>With the world’s financial markets continually experiencing bouts of volatility, this company has quite a bit of momentum right now. Recently, it reported a 12% increase in net trading revenue for the year ended 31 May 2025.</p>


<div class="tmf-chart-singleseries" data-title="IG Group Holdings Price" data-ticker="LSE:IGG" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<p>This doesn’t seem to be reflected in the company’s valuation, however. Currently, IG sports a <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/pe-ratio/">price-to-earnings</a> (P/E) ratio of just 10.3, which is really low relative to the growth.</p>



<p>Add in the fact that there’s a dividend yield of about 4.3% here, and I reckon there’s potential for attractive returns in the years ahead. Competition from rivals such as Trading 212 and eToro is a risk. However, weighing everything up, I like the set-up.</p>



<h2 class="wp-block-heading" id="h-a-niche-financials-play">A niche financials play</h2>



<p>Sticking with the financials sector, I also like the look of <strong>Pollen Street</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-poln/">LSE: POLN</a>). I’ve been buying some shares in this company myself recently.</p>



<p>Pollen Street is an alternative investment manager that specialises in private equity and private credit solutions. And it’s growing at a rapid rate.</p>



<p>Last week, the company posted a 35% increase in assets under management for the first half of 2025. Management fees were up 79% year on year to £37.9m while earnings per share were up 25% to 46p.</p>


<div class="tmf-chart-singleseries" data-title="Pollen Street Group Price" data-ticker="LSE:POLN" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<p>Again though, this momentum doesn’t seem to be reflected in the valuation. At present, Pollen Street trades on a P/E ratio of just 11.6.</p>



<p>That’s a really attractive valuation, to my mind. What’s also attractive is the dividend yield, which currently stands at about 6%.</p>



<p>Of course, with this kind of company, a meltdown in the financial markets is a risk. Taking a five-year view, however, I see a lot of potential.</p>



<h2 class="wp-block-heading" id="h-a-leader-in-tech-solutions">A leader in tech solutions</h2>



<p>Finally, check out <strong>Computacenter</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-ccc/">LSE: CCC</a>). It’s a leading global provider of IT solutions.</p>



<p>I see this company as a good ‘picks-and-shovels’ play on the tech boom. In the same way that those selling picks and shovels made a killing in the gold rush, this company should do well as businesses move to adopt technologies such as cloud computing, AI, and cybersecurity.</p>



<p>Note that this year, analysts expect the company’s revenue to rise about 10%. That’s a healthy level of top-line growth.</p>


<div class="tmf-chart-singleseries" data-title="Computacenter Plc Price" data-ticker="LSE:CCC" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<p>This stock currently trades on a P/E ratio of 14.3. That valuation seems very reasonable to me.</p>



<p>The yield is about 3%, so there’s potential for a decent amount of income too. Note that dividend coverage is very strong so we could see the payout increased over time.</p>



<p>Naturally, a slowdown in IT spending is a risk. Yet, with the world in the midst of a powerful digital revolution, I think this company is well placed for long-term growth.</p>
<p>The post <a href="https://www.fool.co.uk/2025/09/22/3-magnificent-ftse-250-stocks-to-consider-for-growth-and-dividends/">3 magnificent FTSE 250 stocks to consider for growth and dividends</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>2 FTSE shares taking on US tech giants &#8212; and quietly gaining ground</title>
                <link>https://www.fool.co.uk/2025/08/15/2-ftse-shares-taking-on-us-tech-giants-and-quietly-gaining-ground/</link>
                                <pubDate>Fri, 15 Aug 2025 06:13:00 +0000</pubDate>
                <dc:creator><![CDATA[Mark Hartley]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Travel]]></category>
		<category><![CDATA[Value Shares]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1562466</guid>
                                    <description><![CDATA[<p>US tech stocks dominate headlines, but two UK tech firms are proving that FTSE shares can deliver strong growth, reliable income and competitive returns.</p>
<p>The post <a href="https://www.fool.co.uk/2025/08/15/2-ftse-shares-taking-on-us-tech-giants-and-quietly-gaining-ground/">2 FTSE shares taking on US tech giants &#8212; and quietly gaining ground</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>The conversation in global markets often circles back to US tech. The Magnificent Seven still dominate headlines and investor portfolios, with names like <strong>Apple</strong>, <strong>Microsoft </strong>and <strong>Nvidia </strong>setting the pace. But while American stocks grab the limelight, a few homegrown <strong>FTSE </strong>shares are quietly proving that British technology companies can hold their own.</p>



<p>Two that stand out to me are <strong>Sage Group</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-sge/">LSE: SGE</a>) and <strong>Computacenter </strong>(<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-ccc/">LSE: CCC</a>). They might lack the trillion-dollar valuations of their Silicon Valley counterparts, but both have carved out profitable niches and continue to deliver for shareholders.</p>



<h2 class="wp-block-heading" id="h-sage-group-britain-s-software-stalwart">Sage Group: Britain’s software stalwart</h2>



<p>Sage has been around since 1981, long before cloud computing was even a term. It specialises in accounting, payroll and payment software, serving small and medium-sized enterprises (SMEs) around the world.</p>



<p>The company’s shift from on-premises software to subscription-based cloud services has transformed its financial profile. Recurring revenue now makes up over 70% of sales, providing a stable base for growth that’s boosted the share price 47% in the past three years.</p>


<div class="tmf-chart-singleseries" data-title="Sage Group Plc Price" data-ticker="LSE:SGE" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<p>In its latest results, it reported an 11% increase in annual recurring revenue (ARR), with operating profit margins holding steady at around 21%.</p>



<p>Compared to US rivals like <strong>Intuit </strong>(owner of QuickBooks), Sage trades at a far more modest valuation &#8212; a forward price-to-earnings (P/E) ratio of 24 versus Intuit’s 35. That lower multiple could offer better value for long-term investors, especially if subscription growth continues at its current pace.</p>



<h2 class="wp-block-heading" id="h-computacenter-the-infrastructure-backbone">Computacenter: the infrastructure backbone</h2>



<p>If Sage is about software, Computacenter is all about IT infrastructure. It provides technology sourcing, integration and managed services to corporate and government clients.</p>



<p>In an industry where scale and reliability matter, it has built an enviable reputation. Revenue grew 3% in 2024 and income almost doubled in the second half, with the business benefitting from long-term contracts that provide visibility on future earnings.</p>



<p>Yes, operating margins are slimmer than US hardware and service giants like <strong>Dell </strong>or <strong>Hewlett-Packard</strong>. But the company&#8217;s focus on efficiency and customer retention results in a <a href="https://www.fool.co.uk/investing-basics/how-to-value-shares/return-on-equity-and-return-on-capital-employed/" target="_blank" rel="noreferrer noopener">return on equity</a> (ROE) of almost 20%.</p>



<p>Trading at a forward P/E ratio of just 14 and offering a 3% dividend yield, Computacenter looks attractively priced compared to many US peers — particularly given its payment track record and 40% dividend growth since 2020.</p>


<div class="tmf-chart-singleseries" data-title="Computacenter Plc Price" data-ticker="LSE:CCC" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>



<h2 class="wp-block-heading" id="h-how-they-compare-to-us-tech">How they compare to US tech</h2>



<p>The biggest difference between these British tech shares and their US counterparts lies in scale and valuation. American tech firms often command hefty premiums, reflecting higher growth expectations. That can work in a bull market but it also means bigger price fall risk if sentiment turns.</p>



<p>Sage and Computacenter offer a more measured mix of growth, income and stability. Their valuations are lower, dividend yields higher, and revenue streams more predictable. For investors who prefer less <a href="https://www.fool.co.uk/investing-basics/understanding-the-market/what-is-market-volatility/" target="_blank" rel="noreferrer noopener">volatility</a> without giving up exposure to the tech sector, these are two stocks worth considering.</p>



<p>While they may never match the explosive share price gains of a surging Nvidia or <strong>Tesla</strong>, Sage Group and Computacenter show that FTSE shares in the tech sector can deliver steady returns and competitive income.&nbsp;</p>



<p>In an index often criticised for lacking innovation, these two stand out as examples of how British companies can thrive on the global stage &#8212; without needing a Silicon Valley postcode.</p>
<p>The post <a href="https://www.fool.co.uk/2025/08/15/2-ftse-shares-taking-on-us-tech-giants-and-quietly-gaining-ground/">2 FTSE shares taking on US tech giants &#8212; and quietly gaining ground</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>£20,000 invested in a Stocks and Shares ISA 10 years ago could now be worth…</title>
                <link>https://www.fool.co.uk/2025/07/12/20000-invested-in-a-stocks-and-shares-isa-10-years-ago-could-now-be-worth/</link>
                                <pubDate>Sat, 12 Jul 2025 09:01:00 +0000</pubDate>
                <dc:creator><![CDATA[Zaven Boyrazian, CFA]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Investing For Beginners]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1544561</guid>
                                    <description><![CDATA[<p>Stocks and Shares ISA investors have earned tremendous returns in the last decade, but just how much money has been made in the stock market? </p>
<p>The post <a href="https://www.fool.co.uk/2025/07/12/20000-invested-in-a-stocks-and-shares-isa-10-years-ago-could-now-be-worth/">£20,000 invested in a Stocks and Shares ISA 10 years ago could now be worth…</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>Even with all the geopolitical, pandemic, and economic uncertainty we’ve endured in the last decade, the markets have still been pretty rewarding for Stocks and Shares ISA investors.</p>



<p>In 2015, the total amount of money saved in ISAs sat at around £500bn. According to the latest data, it’s now closer to £800bn. And while a good chunk comes from additional contributions, the bulk’s courtesy of strong stock market performance.</p>



<p>So just how much money have ISA investors made since 2015?</p>



<h2 class="wp-block-heading" id="h-a-decade-of-investment-returns">A decade of investment returns</h2>



<p>Everyone has a different portfolio. So the answer to the question – how much money have investors made – ultimately depends on which shares they bought.</p>



<p>In most cases, <a href="https://www.fool.co.uk/investing-basics/how-to-invest-in-shares/how-to-invest-in-index-funds/">index funds</a> end up being the primary destination of invested capital. These passive instruments are cheap, automated and, most importantly, they’ve an impressive track record of steadily building long-term wealth. Here in the UK, the <strong>FTSE 100</strong>’s by far the most popular index, and since 2015, it’s delivered some solid gains.</p>



<p>In fact, when including the extra returns from dividends, investors have reaped a 98.9% total return. That’s the equivalent of a 7.1% average annual gain. And it means £20,000 in 2015’s now worth £39,790.</p>



<p>Those who opted for the <strong>FTSE 250</strong> haven’t been as fortunate. But their wealth has still moved in the right direction, expanding a £20,000 initial investment into £32,140. This deducted performance isn’t entirely surprising given the increased exposure to the British economy, which has notoriously lagged in terms of growth.</p>



<h2 class="wp-block-heading" id="h-what-about-stock-pickers">What about stock pickers?</h2>



<p>Investors who are more confident and willing to take on more risk go beyond index funds and invest in individual shares directly. This can either be incredibly rewarding or backfire spectacularly if bad investment decisions are made. It all depends on how wisely an investor approaches the markets.</p>



<p>Those who focused on long-term hidden quality may have stumbled upon businesses like <strong>Computacenter</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-ccc/">LSE:CCC</a>). In a world of digitalisation, Computacenter positioned itself to be the go-to reseller for the private and public sectors of IT hardware. And as demand for automation, networking, and cybersecurity has continued to build, revenue over the 10-year period has more than doubled to £6.9bn while earnings have more than tripled.</p>



<p>For shareholders, that’s translated into a total investment return of over 200% transforming a £20,000 ISA into £60,590. Of course, there have been plenty of other UK shares that delivered far weaker returns, such as <strong>ITV</strong> and <strong>Currys,</strong> which are down a staggering 70% over the same period, leaving investors with just £6,000.</p>



<div class="tmf-chart-singleseries" data-title="Computacenter Plc Price" data-ticker="LSE:CCC" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<h2 class="wp-block-heading" id="h-still-worth-considering">Still worth considering?</h2>



<p>Demand for Computacenter’s services hasn’t waned in 2025, with a record order backlog and an impressive growth outlook. With that in mind, I think investors could be well served to take a closer look. But of course, there are risks to watch out for.</p>



<p>Macroeconomic uncertainty and global instability in trade can and have resulted in IT spending cuts in certain sectors. And a prolonged cyclical downturn could undercut the firm’s current growth trajectory. This may prove to be only a short-term issue. The group’s reputation for excellence is now well known so its shares trade at a premium. And that can invite <a href="https://www.fool.co.uk/investing-basics/understanding-the-market/what-is-market-volatility/">unwanted volatility</a> should spanners start getting thrown into the works.</p>
<p>The post <a href="https://www.fool.co.uk/2025/07/12/20000-invested-in-a-stocks-and-shares-isa-10-years-ago-could-now-be-worth/">£20,000 invested in a Stocks and Shares ISA 10 years ago could now be worth…</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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                                <title>Forget the State Pension! Here&#8217;s how to target a comfortable retirement income with £500 a month</title>
                <link>https://www.fool.co.uk/2025/06/15/forget-the-state-pension-heres-how-to-target-a-comfortable-retirement-income-with-500-a-month/</link>
                                <pubDate>Sun, 15 Jun 2025 06:31:00 +0000</pubDate>
                <dc:creator><![CDATA[Zaven Boyrazian, CFA]]></dc:creator>
                		<category><![CDATA[Investing Articles]]></category>
		<category><![CDATA[Retirement Articles]]></category>

                <guid isPermaLink="false">https://www.fool.co.uk/?p=1533024</guid>
                                    <description><![CDATA[<p>The British State Pension is nowhere near enough money to enjoy a comfortable retirement today. Here's what investors can do to try and fix that.</p>
<p>The post <a href="https://www.fool.co.uk/2025/06/15/forget-the-state-pension-heres-how-to-target-a-comfortable-retirement-income-with-500-a-month/">Forget the State Pension! Here&#8217;s how to target a comfortable retirement income with £500 a month</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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<p>In the UK, the full new State Pension is £230.25 a week, or a total of £11,973 a year. That&#8217;s certainly a nice chunk of change to help out during retirement. But sadly, it doesn&#8217;t come close to what&#8217;s needed to live comfortably. According to the Pensions &amp; Lifetime Savings Association, a pensioner needs to have an income of at least £43,900 a year to enjoy financial freedom once retirement comes a-knocking.</p>



<p>The good news is investing just £500 a month can potentially help close the £31,927 gap when starting early.</p>



<h2 class="wp-block-heading" id="h-earning-32-000-passively">Earning £32,000 passively</h2>



<p>Let&#8217;s start by crunching some numbers. By following the 4% withdrawal rule, to earn a £32,000 investment income, an investor needs to have a portfolio valued at around £800,000. Obviously, that&#8217;s not pocket change. But reaching this target with £500 of capital each month is more than doable with a sufficiently long time horizon.</p>



<p>On average, the British stock market has historically delivered annualised gains of around 8% a year. Investing £500 at this rate will eventually reach the £800,000 threshold within a period of 31 years. So for those planning to retire comfortably at 65, the best time to get started is at the age of 34.</p>



<p>However, there are a few tricks to cut down the waiting time for those who are a little late to the party.</p>



<h2 class="wp-block-heading" id="h-exploring-later-solutions">Exploring later solutions</h2>



<p>Leveraging the power of a Self-Invested Personal Pension (SIPP) is likely a sensible move when it comes to retirement investing. That&#8217;s because deposits are entitled to tax relief equal to an individual&#8217;s income tax bracket. Assuming an investor&#8217;s paying the basic rate, for each £500 deposit, they could end up with £625 of investable capital. And that extra £125 monthly bump is enough to cut the waiting time by around three years, allowing a later start at the age of 37.</p>



<p>But what about those already in their 40s? This is where stock picking can potentially save the day.</p>



<p>Instead of relying on <a href="https://www.fool.co.uk/investing-basics/how-to-invest-in-shares/how-to-invest-in-index-funds/">index funds</a>, investors can take matters into their own hands and craft a custom investment portfolio. There&#8217;s no denying this involves a lot more effort and likely exposes an investor&#8217;s wealth to greater volatility and risk. But by taking a measured and prudent approach, it&#8217;s possible to earn considerably more than 8%.</p>



<p><em>Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.</em></p>



<h2 class="wp-block-heading" id="h-the-power-of-stock-picking">The power of stock picking</h2>



<p>Let&#8217;s look at <strong>Computacenter</strong> (<a class="tickerized-link" href="https://www.fool.co.uk/tickers/lse-ccc/">LSE:CCC</a>) as an example. The company&#8217;s a value-added retailer of IT hardware, software, and services, predominantly helping hyperscaler data centres as well as other businesses and public sector agencies. With technology rapidly evolving, having a supplier who knows all the intricate details about the tools available and who can steer clients in the right direction has proven invaluable.</p>



<div class="tmf-chart-singleseries" data-title="Computacenter Plc Price" data-ticker="LSE:CCC" data-range="5y" data-start-date="" data-end-date="" data-comparison-value=""></div>




<p>As such, shareholders have enjoyed a fairly consistent stream of <a href="https://www.fool.co.uk/investing-basics/understanding-company-accounts/the-profit-and-loss-account/">rising revenues, profits, and dividends</a>. However, the firm&#8217;s undoubtedly reliant on a few key clients, creating customer concentration risk. At the same time, ample competition has put pressure on margins over the years.</p>



<p>Nevertheless, Computacenter&#8217;s steady success has paved the way to a 13.4% average annualised return over the last decade. And at this rate, the journey to £800,000 in a SIPP is cut down to around 20 years. So for any 45-year-old looking to secure their retirement beyond the State Pension, hunting for Computacenter-like stocks while keeping risk in check and ensuring a balanced portfolio might be the solution.</p>
<p>The post <a href="https://www.fool.co.uk/2025/06/15/forget-the-state-pension-heres-how-to-target-a-comfortable-retirement-income-with-500-a-month/">Forget the State Pension! Here&#8217;s how to target a comfortable retirement income with £500 a month</a> appeared first on <a href="https://www.fool.co.uk">The Motley Fool UK</a>.</p>
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