Posted by Troy July 29, 2023No Comments

6 – Review performance

Whether your share portfolio is crammed full of companies or holds only a handful of stocks, it’s vital you review how each component is performing on a regular basis: monthly, quarterly, or annually.

Doing this gives you the opportunity to review performance and ask if any adjustments to your holdings are required – to maintain the status quo, buy more stock, or sell existing shares.

How to sell Netflix stock
When you want to sell your holdings, log in to your investing platform, type in the ticker symbol and select the amount you want to sell.

If you’ve made a substantial profit, you may be liable to CGT when you come to sell your holdings, especially if your shares were held outside a tax-exempt wrapper such as an ISA.

The CGT tax-free allowance for the tax year 2023-24 is £6,000, a significant reduction from a figure of £12,300 in the previous tax year. Note that the allowance is due to be lowered again, to £3,000, in 2024-25. Find out more here about CGT, rates and allowances.

How to invest in Netflix via a fund
Investing directly in individual stocks will, hopefully, be a profitable experience. It may also qualify you for shareholder perks specific to the company in question.

It can also leave you vulnerable to stock market volatility and unforeseen swings in share prices. Nowadays, even a solo tweet – let alone a full-blown geo-political conflict – can send shock waves through the stock market.

That’s why, financial experts recommend that most people invest in a diversified mix of asset classes and investment funds that hold hundreds, if not thousands, of company shares.

Being a large component of the Nasdaq index, Netflix is found in many ‘active’ and ‘passive’ (index tracker) funds incorporating a bias towards the US.

Frequently Asked Questions
1. Does Netflix pay a dividend?
Dividends are a distribution, usually in cash, generally paid by a company to its shareholders half-yearly. Payments are usually met out of that year’s earnings. Companies aren’t obliged to pay a dividend, but may choose to do so for a number of reasons – as a gesture of a company’s support to its financial backers, for example, or as an incentive to shareholders to continue owning shares.

At present, Netflix is not anticipated to pay a dividend over the next 12 months.

2. Can I buy Netflix shares with a debit card?
Yes, in the sense that you’d need to add funds using an appointed card to an existing online investing service or trading app before making the share trade from there.

3. What does it cost to trade Netflix shares?
This will vary depending on the investment service/platform that an investor is using to trade.

Broadly speaking, there are three main types of fee. First is a share trading fee that investors are charged by a platform each time they buy or sell shares. Note that some platforms charge no fee for this activity, while others may charge a flat fee of typically between £6 and £12.

Second comes the platform fee which is typically levied as an annual fee charged for holding shares on a particular investing platform. Again, some providers impose no fee, others charge a flat fee, and some services charge a percentage, typically 0.25% to 0.45% per annum of the value of an underlying portfolio.

If you buy or sell shares denominated in a foreign currency, such as dollars as relating to Netflix, nearly all of the investing platforms charge a foreign exchange fee. Again, this will vary amongst providers, but tends to sit in a range from 0.5% to 1.5% per transaction.