Make your money go further for just 25p per day

PREMIUM

Moneysupermarket: growth, quality and a 4% dividend yield

Action Man and dancers in latest Moneysupermarket.com advert

Price comparison websites have changed the way people shop for financial products. In the UK, they are used by an estimated 11m people. Standing out in the crowded marketplace is not easy, but this company is managing it better than most thanks to a sensible investment strategy, an impressive ability to generate cash and:

  • An average return on investment of almost 50% in the last five years
  • Rising operating profit margins 
  • Consistent double digit profit growth

There are very few rewards for loyalty in the consumer services market. New customers are offered the best deals from energy, communications, insurance and mortgage providers, meaning consumers who want the best deal are forced to switch supplier regularly.

Moneysupermarket.com (LON: MONY) doesn’t mind. The comparison website does well when price rises force consumers to switch their service provider, which is why its energy business received a boost when the government hiked the energy price cap in February. Energy provider switching rose 12% in the first quarter of 2019, which contributed to a 70% rise in revenues at Moneysupermarket’s home services division.

Energy is a relative newcomer in Moneysupermarket’s suite of savings services. The company began life in 1993 providing mortgage listings in the post. In 1999, as computers and the internet were starting to become regular fixtures in offices, the company launched its Mortgage 2000 website so subscribers could check deals in real time. The addition of credit cards, personal loans…

Continue reading this article…

Enjoy FREE access to the top news and insights from the investment world and our introductory finance guides.
  • Informative guides
  • Unique podcasts
  • Financial news and political insight
Gain access to all our excellent content for just £90 per year, that’s just 25p per day for financial freedom.
  • In depth coverage of many of the world’s great companies
  • Breaking news on potential upcoming disasters
  • Unique insights from our top research team

Have your say

Log in or register to view or add comments.

For access to the top news and insights from the investment world

REGISTER FREE TODAY

Fundamental Asset Management

Buy any of our portfolios with our associates at Fundamental Asset Management.

Find out more

More on Moneysupermarket.com

Portfolio Flash News: May

20/05/2019 · Portfolio Flash News

It’s not always easy to keep track of your investments. Sometimes big news gets hidden in…


Moneysupermarket: growth, quality and a 4% dividend yield

07/05/2019 · Portfolio

Price comparison websites have changed the way people shop for financial products. In the UK, they…


Portfolio Flash News: April

30/04/2019 · Portfolio Flash News

It’s not always easy to keep track of your investments. Sometimes big news gets hidden in…


More Portfolio

Walt Disney’s endgame is media domination

25/04/2019 · Walt Disney

Sidestep Brexit woes with Diageo

09/04/2019 · Diageo PLC

WPP’s advertised dividend yield could be a winning message

26/03/2019 · WPP