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In this week’s newsletter:
- Top FTSE 100 UK Dividend Paying Stocks
- UK Inflation Falls Unexpectedly
- SpaceX’s IPO Filing: Big Spending, Big Losses
- Nvidia Earnings: Massive AI Adoption Remains On Track
- BT Lays Out New Dividend Plans Despite Lower Revenue
- How This Mattioli Woods Manager is Playing Volatile Markets
Nvidia is usually the focus of investor attention when it reports earnings but Elon Musk’s SpaceX upstaged the S&P 500’s biggest company this week with its much-anticipated IPO filing. The Starlink and xAI vehicle is targeting a valuation of around USD 1.75 trillion, much higher than expected at the start of 2026, offering of up to USD 75 billion to shareholders. UK fund manager Baillie Gifford has a multi-billion pound exposure to this IPO, especially via £14 billion investment trust Scottish Mortgage, whose share price is already up 30% in 2026. With OpenAI and Anthropic also set to float this year, UK funds with unlisted tech exposure could see further gains.
UK politics has taken a back seat this week, at least in terms of market-moving events. What did move the needle was the latest UK inflation data, which came in much lower than consensus forecasts. While economists are warning this is a temporary reprieve, bond yields retreated and futures markets (again) repriced the odds of Bank of England interest rate rises this year.
In stock news Christian Mayes has updated the monthly UK dividend screen and this shows BP BP. A—whose shares have made their best ever start to the year—and Shell SHEL announcing year over year increases in payouts. There’s also new entrant to the list: National Grid NG., which yields nearly 4% and is in focus as the UK upgrades its electricity infrastructure to reduce dependence on fossil fuel generation.
One of our most popular stories this week has been the overview of BT’s annual results. Shares dropped on the day as investors focused on weaker revenue growth and lost customers, but the dividend news was a bright spot. The company, whose shares are up 25% this year, committed to increasing its payout from 2027. BT BT. A didn’t pay a dividend for two years but now yields nearly 4%.
Next week we delve into the world of UK corporate bonds, which were once off limits because of high minimum investment limits. It’s early days for “Plain Listed Vanilla Bonds” and the UK’s savers and investors are still hooked on cash deposits. But gilts have surged in popularity as yields have risen and platforms now offer liquid trading, so why not corporate bonds? The UK, after all, has a range of large companies with healthy balance sheets and decent credit ratings.
