- More expensive quality shares still hold attraction in an uncertain time for the economy
- Investors should be mindful of ESG when appraising sin stocks
Much was made of the so-called rotation into value stocks when the first good news on vaccines broke. Investors could soon realise that the world economy – and the UK economy in particular – have an uphill struggle in recovering from the impact of the pandemic and lockdowns. Therefore, buying shares in quality businesses that slowly compound away is an investing style that retains merit, even though there could be some intriguing value situations materialising on the UK stock market, too.
Of these old reliable companies, consumer goods giant Unilever (ULVR) rates highly, scoring 9/9 on our quality screen this month. Precious metals miner Polymetal International (POLY) also gets full marks.
Some sin stocks have traditionally had quality characteristics from an investing point of view. Although, as environmental, social and governance (ESG) scoring becomes ubiquitous, investors in our screen topper - tobacco company Imperial Brands (IMB) – have more to think about than just our ranking criteria.
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