How to buy Prudential shares (PRU)

By:

Charlie Hancox

Charlie is a Financial Writer for Invezz. He covers commodities, cryptocurrencies, and breaking news. Prior to joining Invezz he helped grow Crux Investor into the fastest-growing... read more.

Updated: Jul 6, 2023

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This page explains the key aspects of Prudential as an investment proposition. We explore the history of the company, its recent financial performance, and discuss where to buy Prudential stock online and how to trade it.

Compare the best Prudential trading platforms

If you are looking for the best place to buy Prudential stock, look no further than the table below. Simply click one of the links and sign up to a top broker. We have reviewed these options extensively to make sure they are the best around. For more information about Prudential, keep scrolling down this page.

Most Popular

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How to buy Prudential stock, a step-by-step guide

Nowadays, the process of investing in a company is simple, so don’t worry, even if you’re new to stock investing. These are the steps to follow in order to complete your investment:

1. Choose a broker. In order to buy Prudential stock, you need to use an online brokerage platform. There are many different options to choose from, each with its own unique benefits and drawbacks. The comparison table above can help you select the right broker for you, and you can head to our comprehensive broker reviews if you’re still unsure.
2. Create an account. Once you’ve selected your broker, simply go to their website and create an account. The steps required for this will vary from platform to platform, but generally, you can expect to have to provide your name, email address, phone number, and some form of photo identification.
3. Deposit funds. Log into your broker account and select the option to deposit funds. Depending on your broker you’ll have a variety of payment options available; most brokers accept bank transfers and debit card payments, but not all accept e-wallets such as PayPal. Select your preferred payment method and deposit the amount of money you wish to invest in Prudential shares.
4. Place an order for PRU stock. Now navigate to the stocks section of your chosen brokerage platform. Here you’ll be able to search for Prudential’s ticker symbol (PRU) and see the current price at which the stock is trading. If you’re happy with the price, enter the number of shares you wish to purchase and place your order.
5. Execute your order. Once you have placed your order, your broker will automatically execute it for you and your Prudential shares will be listed in your account. Congratulations, you’ve just bought shares in Prudential.

What is Prudential? And should I invest?

Headquartered in London and founded in 1848, Prudential is a multinational insurance company that provides loans to professionals and working people. The company has dual primary listings on the London Stock Exchange and Hong Kong Stock Exchange, at it is also part of the FTSE 100 index.

The company has rapidly grown to become a global leader in the insurance sector, offering insurance, retirement products and asset management services to over 20 million customers. It is divided into two parts: Prudential Corporation Asia, the largest UK life assured in Asia, and Jackson National Life Insurance Company, an American life insurance company acquired by Prudential in 1986.

As a financial stock, Prudential is largely cyclical, this means that it mirrors the behaviour of the wider market. In addition, as a large-cap company, its market behaviour is more stable than other stocks. However, it is important to note that while share price growth may provide some returns, it is unlikely to match up to the growth ceiling of a smaller company, though Prudential does pay dividends.

How has the company performed in recent years?

The company’s share price has been on an almost constant rise for the last decade, and though COVID-19 put a dent in its valuation, its recovery has been dramatic as it hovers around all-time highs.

Along with this healthy growth, Prudential’s dividend yield of around 0.8% has provided a reasonable bonus to investors. This is far from one of the best dividend stocks, and this is likely indicative of Prudential’s falling profits over the last few years, down 12% to $57 billion in 2020. However, the long-term fundamentals of the business appear robust.

If Prudential is one thing, it is rock solid. Its handling of finances has been impressive, especially during the difficulties of COVID-19, when it implemented a cost-saving programme that will eventually save $750 million by the end of 2023. It is hardly likely to experience exponential growth, but as far as a consistent performer, Prudential has few equals.

Is it a good time to buy Prudential shares now?

Buying shares in Prudential has been prudent for much of its history, but making a decision should come down to your own individual investing strategy. So, if you are a long-term investor, Prudential’s solid growth and dividends could present a good opportunity. In this instance, conduct extensive due diligence and decide how much you think the company is worth. If the market valuation is below your price, buying could be a good move.

For short-term traders, Prudential’s stability means it is less like to throw up volatility for you to profit from. However, trading opportunities can always arise should sentiment quickly shift, and this is true of any stock.

Whatever your investment thesis, staying up to date with the latest news about Prudential is highly advisable. With that in mind, check out our latest analysis about the company below:

Buying, selling and trading shares for beginners

What to do before buying shares

You should always take the time to research a stock fully before investing your money, especially if you haven’t bought shares before. The more knowledge you have, the better your chances of making a wise investment. 

With that in mind, here’s a checklist to run through before investing in Prudential shares.

1. Research the company. You should always examine the fundamentals of a company before investing. What is Prudential? How did the company get its start? How did it grow? Is Prudential’s revenue and profit growth picking up? Is the company innovating? The more you know about Prudential, the better positioned you’ll be to make smart investment decisions.
2. Make sure you understand the basics of stock investing. Before getting involved in the stock market, make sure you have an understanding of how it works. This will ensure that you have more clearly defined goals and have thought through how you will achieve them.
3. Decide between share dealing and CFD trading. Choose the type of investment strategy you want to pursue, and make sure you have carried out the necessary fundamental or technical analysis for share dealing and CFD trading respectively.
4. Set the size of your budget. The golden rule of investing is never to risk more than you can afford to lose. Not every investment you make will result in a profit, so it is important to set a budget that not only allows good potential for capital growth, but also protects against overly damaging losses.
5. Find the right broker. Individual brokers each have their own pros and cons. Some will have low fees but have a user interface you struggle to understand, whereas others may be a bit more expensive but come with a range of features that you want to take advantage of. Use our broker reviews to find the right platform for you.
6. Examine broader market conditions. No stock exists in a vacuum, and it’s always important to analyse the general trends of the stock market as a whole before investing. If a bear market is setting in and stock prices are falling, it’s best to wait it out and invest your money later when the stock is cheaper. If, however, the market is looking bullish, you’ll want to make your investment quickly to get the maximum benefit from rising stock prices. Follow the latest news to help you keep on top of movements in the financial markets.

What is the difference between buying, selling, and trading shares?

If you’re new to stock investing, then it’s important to understand the basics of how to buy, sell, and trade Prudential shares. Here’s a quick run-through of what’s involved in each.

Buying Prudential

This process involves finding a broker and placing an order for Prudential stock, as outlined in the steps further up this page. Ideally you want to time your investment when the stock’s price is low so that you can profit by selling the shares after they increase in value.

Selling Prudential

When you sell any Prudential shares you have bought, you’ll want to do so at a higher price than the one at which you bought to earn a profit. 

When you sell is up to you. You might decide to keep your shares for a long time, hoping to benefit from the company growing steadily throughout. Or, if you see that Prudential’s stock is already up a lot compared to the price you bought it and you’ve noticed that the stock market is starting to fall, it might make sense to sell and take your profits to invest elsewhere. Equally, if the stock has fallen since you bought it and looks set to fall further, it might be a good idea to cut your losses by selling your shares.

Trading Prudential

Trading is the same process as buying and selling shares, it’s just done over shorter periods of time with the aim to make small profits on a regular basis. This means that you can make money faster and spend your profits in your day-to-day life – however, on the other side it means you can lose money faster as well. For inexperienced investors, we generally recommend making investments for at least 6 months to a year instead of making trades in quick succession.

You can trade Prudential shares outright, or you can trade CFDs. These allow investors to speculate on stock prices and trade with leverage in pursuit of bigger gains. CFDs trading is explained further in the next section, but it is worth noting that beginners should avoid trading with leverage. It comes with large risks and is best left to experienced investors.

Share dealing vs CFD trading

When it comes to investing in any stock, the two options you have are share dealing and trading. Which one of these methods to opt for largely depends on your investment timeline, with investors thinking long term tending to go for share dealing, and those looking for short term gains pursuing a more aggressive trading strategy.

Here’s a quick summary of the two approaches, and the pros and cons of each.

Share dealing 

Share dealing refers to the practice of holding shares in a particular company over the long term. When investing like this, you’re seeking to profit either from dividend payments or an increase in the stock’s price over time.

When investing your money this way, it is important to do thorough fundamental analysis of the company in which you are investing. You want to put your money in a stock you believe will trend upwards over time, even if there is some market volatility along the way, rather than get distracted by shorter term peaks and troughs.

Pros

• Can build wealth over time to achieve financial goals
• Don’t need to be very reactive to short-term market movements
• Some stocks will give you an income through regular dividend payments

Cons

• Takes a long time to realise any profits
• Your capital is tied up in stocks and cannot be used for other investments

CFD Trading 

If your aim is to generate profits in the short term, then you might be better off trading shares than holding them in your portfolio. Stock trades like this are executed using CFDs (contracts for difference), which allow investors to trade against the value of a stock without having to take ownership of it. When CFD trading, investors are looking to buy and sell stocks fast to profit from short-term fluctuations in value.

One aspect of CFD trading that many investors find attractive is that they allow you to trade with leverage. This means you can place large trades while only putting up a fraction of the value yourself – for instance, if a platform offered leverage of 1:10, you could put £10 into PRU shares and be able to trade £100 worth. This can maximise profits if the market moves in your favour, but be careful as it can also lead to heavy losses.

When trading using CFDs, it is key to be skilled at technical analysis and reading stock price charts. As you’re trading stocks quickly and frequently, the fundamental strength of the company in which you’re investing isn’t as important as being able to predict how its stock price will rise and fall minute-by-minute.

Pros

• Can generate fast profits if you read the market right 
• Some platforms allow you to trade with leverage
• Prevents your capital being tied up so you can take advantage of investment opportunities

Cons

• Trading with leverage is risky and can lead to big losses
• Doesn’t necessarily generate growth over the long term

Consider which approach suits you best and craft an investment strategy that works for you. If you need more information, then simply take our course on how to trade stocks.

If neither of these options appeal to you, then you can find a variety of other ways to invest in PRU stock on this page. If, however, you’re ready to get started, simply select one of the brokers in the table above and sign up.

How to choose a broker

With the wide variety of online brokers available these days, it can be hard to figure out which is the best service to go with. Our comparison table and in-depth reviews can help you cut through the noise, but by and large these are the aspects you should be considering when selecting a broker:

• Range of stocks available. The most important thing is that you can actually use the broker to purchase the shares you’re looking for. Some brokers offer more stocks than others, and many will allow you to trade other assets, such as forex and commodities.
• Fees and commissions. You want to keep as large a chunk of your profits as you can, so it’s important to make sure your broker doesn’t charge high fees that can eat into your profits.
• Regulation. You should only use regulated brokers to invest. Unregulated brokers can be risky and offer little protection if the business were to fail while you had funds in your account.
• Payment methods available. You might want to buy shares using a specific payment method, such as PayPal. Not all brokers accept every payment method, but by using our comparisons, you can find the brokers that support the option you’re looking for.
• Reputation. One of the strongest indicators of a broker’s reliability is the reputation it has with the customers who have used it. Brokers are online businesses, and as such many user experiences can be found online. You can check these out in addition to our reviews to make sure you choose the right platform.
• Customer service. As you’re going to be investing your money using the platform, you want to check that the broker offers good customer service in case you have a query or something goes wrong.