Opinion: profit from the companies that profit off you
Whether it’s an energy firm, TV package provider or bank, we all feel like we’re being overcharged from time to time. Here’s how to fight back via your investment portfolio.
Keeping your monthly bills in check is often a thankless task.
Even if you regularly switch energy provider or move your bank accounts it can still feel as though you are being overcharged.
However, there is one way you can beat the companies that eat into your salary each month at their own game.
Most multinational firms, including banking and energy giants, do a good job of looking after those who invest in their businesses.
So why not become a shareholder and make back some of the money you feel you are losing in rip-off costs?
Here are three examples of firms that operate in sectors famous for poor customer satisfaction, but their shareholders are laughing all the way to the bank.
New to investing? Read our beginner's guide to Stocks & Shares ISAs
Utilities
As yet, the energy watchdog seems to be doing little to control the constant upward trend for energy bills.
However, if you invest in one of the major energy firms you can at least benefit from its profits.
Shares in British Gas-owner Centrica (CNA) have had a turbulent time over the past few years, with plenty of peaks and troughs.
However, they have risen by 24% over the past 12 months and they also offer a tempting dividend, currently yielding 5.18%.
Media package
The cost of landline, broadband and TV packages keep rising rapidly.
Many Sky customers will see their bills jump by 9% on average next month (March 2017) as line rental charges are increased for the second time in two years.
A steep rise for sure, but shares in Sky (SKY) can beat that.
They are up 44% over the past five years and yield a tempting 3.34%.
Needless to stay past performance is no guide to what the future may hold, but that yield could help mitigate the sting of rising bills.
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Banking
Bank customers are no strangers to poor deals. Recent research found that some are being charged more for an unauthorised current account overdraft than if they'd taken out a payday loan.
At the other end of the scale, just one in 30 savings accounts will see customers' cash keep pace with inflation.
With such poor deals on offer, you wouldn't have to try hard to earn a better return on your money.
And while the banking sector continues to prove volatile, those comfortable with the risk could stand to profit.
For example, HSBC Holdings' (HSBA) shares have rocketed almost 60% in the last 12 months, while the 6% yield is one of the highest in the FTSE 100.
The views expressed in this article are the author's own and do not necessarily represent those of loveMONEY.
The information included does not constitute regulated financial advice. You should seek out independent, professional financial advice before making an investment decision.
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