The pharmaceutical company AstraZeneca was recently in the headlines for reaching an all-time high in its share price and also for its covid 19 vaccine production. In summer 2020 during the corona pandemic, the AstraZeneca shares reached their all-time high when a variety of other companies collapsed.
But, also when it produced a vaccine for covid 19 to help the world, it had to face a decline of 25% in its share price. This sounds a bit odd, right?
Don’t worry, In this guide, we will explain what caused the company to face a decline and whether or not investing right now in AstraZeneca is good or not. Stick with us until the very end of the article to get the answers to the questions you are looking for.
AstraZeneca at a Glance
The drugmaker AstraZeneca is the result of the merger of two big companies, Astra and Zeneca which happened in 1999. Before this merger took place Astra was a swiss drug manufacturer and Zeneca was the pharmaceutical division of the UK agrochemical manufacturer ICI. That means, AstraZeneca relatively is new in the industry, and it has gained immense popularity to date and got listed among World’s largest pharmaceutical companies. We have also seen Moderna gaining popularity during this pandemic.
The company has also contributed to the research and development of cancer tools, infections, gastrointestinal issues, cardiovascular disease and respiratory illness. AstraZeneca’s share has been trading under the ticker symbol AZN and it has shown tremendous growth since its creation.
When the company was first listed on the London stock exchange its share was worth around 2,500 pence and today at the writing of this article the share is worth more than 8,384 pence. This company is among those companies which managed to survive during the corona pandemic and that too positively. The pandemics have helped this company to reach its all-time high in the summer of 2020.
Later than that, the company decided to partner with Oxford University with the vision to create a vaccine candidate. In July it executed its idea into a combined phase ⅔ trial which got approved in January 2021 by the EU.
Though the distribution of this vaccine stopped because of the blood clots that were in a few people but later on the distribution for this vaccine was again started because the research declared that blood clots are not the results of this vaccine. That’s why it received a green signal in March. However, it failed to manufacture more doses of vaccines for the countries which resulted in the company facing a huge criticism.
Why buy AstraZeneca Shares?
Before you buy shares of any company, it is very crucial to do some background research and determine whether you should add that particular shares to your portfolio or not. When buying shares of any company there are a variety of things that you should consider such as how it has performed in the past, what are the future expectations, can you consider investing it for retirement income, what have it paid to its shareholders and many more.
Therefore it is very important to do your research before jumping straight to any decision. Below we have listed a few points that you should consider before buying AstraZeneca Shares.
- The very first thing to consider before buying a share is whether or not it offers you Dividends. And to your surprise, you will be glad to know that AstraZeneca pays out a handsome dividend of 218 pence, which means a yield of around 2.8% and that’s why AstraZeneca shares are favourite among UK dividend investors. One thing to note here is that, unlike other companies which have cut back on the payments of their shareholders due to the corona pandemic, AstraZeneca has pushed ahead with its dividends.
- As we have studied above the company has contributed to the research and development of cancer tools. Even though the company has gained immense popularity for its partnership with Oxford University for vaccine candidates, its true potential lies in oncology.
- Another thing that investors should consider is that the company isn’t limited to oncology and vaccines only. It is working with major projects that are likely to boost its reputation and financial growth in the coming future. AstraZeneca still has 167 ongoing projects and each of these projects has the potential of making billions with each passing year, and many of these projects are at the final stage of completion.
- During Corona Pandemic, the company has successfully made an all-time high and with its vaccine candidate project, it got a lot of attention recently. The vaccine rollout is still happening but the sad part for the company is that there are countries such as the U.S that haven’t improved the vaccine rollout because of the fears of blood clotting. This ban has resulted in the share price decreasing by 25 per cent. But there are still countries that are ready for its vaccines because it is providing them at a very accessible cost.
Well to the least the company has also got experience in the development and manufacturing of vaccines, which adds to the company’s credibility.
Best Trading Platforms for AstraZeneca Shares
Thousands of trading platforms offer AstraZeneca shares but it is very hard to choose which platform is best for you. There are many metrics that you need to consider before you choose any platform but it can be very troublesome and time-consuming. Therefore to save your time and energy we have listed down the best trading platforms that offer these amazing AstraZeneca shares.
eToro- Commodities Free Trading Platform
eToro is the world’s finest trading platform that offers a variety of financial assets for investment including, Cryptocurrencies, Commodities, Indices, and Shares. It offers 800+ Shares globally. This platform allows you to trade stocks that are listed on the London, New York and Tokyo exchanges.
When talking about shares it offers a variety of options, including AstraZeneca shares. On this platform you are allowed to apply the leverage of up to 1:5 and even you can buy assets traditionally.
The platform is further regulated by the FCA, ASIC and CySEC. Even the platform is accessible to US traders as it is also registered with FINRA. Except you will be required to pay a 0.5% fee on all your deposits and $5 on every withdrawal. It is the cheapest brokerage platform in the UK.
For beginners, eToro provides the copy trading feature. This feature allows you to copy ongoing trades of expert traders. You can also use the copy portfolio feature, which allows you to diversify your investment portfolio. Unlike other platforms, account creation on this platform is not time-consuming. It takes only a few minutes to create an account on eToro. Once you are done with creating an account you are then required to fund it to start your trading journey.
For the convenience of its user’s, it accepts various payment methods for making a deposit such as Debit/Credit Card, Bank account, e-wallet e.t.c. The fee attached to the platform is an inactivity fee of $5, which is understandable and also the spreads are relatively low. The platform also offers a mobile application for the convenience of its customers. This trading platform also offers 24/7 available customer support which other free platforms don’t offer.
- Regulated by FCA, ASIC and CySEC
- Copy-trading and CopyPortfolio feature
- Offers a variety of financial assets
- Accepts debit/credit, bank account, e-wallet
- Fractional trading
- Offers 800+ shares
- Offers AstraZeneca shares
- Not suitable for advanced learners
Plus 500- Trade through CFDs
Another brokerage platform that we have on our list is plus 500 that gives access to a variety of different financial assets through CFDs including AstraZeneca Shares with a spread of 1.25 or 0.07 % and 0.5 minimum deposit.
On this platform, you will get access to the shares of nearly 500 companies. Moreover, it allows you to apply the leverage of up to 5:1 on AstraZeneca Shares. The platform is fully packed with advanced charting packages, an economic calendar, risk management tool and price alerts service.
The platform is regulated by the FCA.
Hence it makes sure that all of its traders’ funds are not compromised at all. Its parent company is listed on the London Stock Exchange. The account creation on this platform is not time-consuming. All you are required to do is to enter your few basic details, undergo a verification process, make a deposit and that’s all. To deposit on this platform you can either use debit/credit cards, bank transfers or PayPal.
- Regulated by the FCA
- Access to a wide range of investment assets
- Leverage of up to 5:1 for retail customers
- Easy and fast account creation
- Offers short selling
- Price alert feature
- Offers mobile application
- Offers AstraZeneca shares
- CFDs only
- Not beginners-friendly
IC Markets – STP Execution
Another amazing platform when thinking about trading AstraZeneca shares is IC Markets. The spreads are really tight on this platform because of its diverse and proprietary liquidity. That’s why it is considered the best Platform globally for offering such tight spreads that over 29 billion USD trades are executed daily on this platform.
The platform also allows you to diversify your trading portfolio as it offers you a variety of global financial markets such as commodities, indices, bonds, forex, cryptocurrencies and stocks. Traders get attracted to this platform because of its unique features.
The very first feature is that the trades can be placed through Full Mini and micro-lot accounts with the use of MAM and PAM accounts via the MT4 Platforms. Another amazing feature is that without affecting the trading activity on the platform traders can add and remove funds. Moreover, it provides various services like STP for those who are looking for fund managers, who place trades on the behalf of the investors. Furthermore, the platform is compatible with almost every device such as Android, ioS, MAC, Windows and Web browser.
On this platform, you can make deposits hassle-free by using a variety of methods such as VISA, PayPal, Skrill, Nettler, and MasterCard. Unlike other trading platforms, Withdrawals are super fast on this platform. The account creation and finding take no more than ten minutes, also the procedure is very easy and easy to catch. If you face any issue while using the platform you can get instant help as it offers a 24/7 active demo account. It also offers a demo account for the convenience of its traders.
- Regulated Platform
- Offers AstraZeneca shares
- Offers a variety of financial assets
- Straight Through Processing execution on bulk orders.
- Amazing features
- Offers professional reporting for the money manager
- Offers demo account
- Easy and fast account creation
- Variety of payment methods
- Fast withdrawals
- Considerable administration for money managers to set up accounts.
How to buy AstraZeneca shares?
AstraZeneca, the pharmaceutical company, secures a position in the world’s largest pharmaceutical companies. It can be bought in two ways either by trading derivatives or by share dealing. If you choose to buy AstraZeneca by trading derivatives such as CFD or spread betting you get to speculate on the price movements of AstraZeneca without getting any direct ownership of the shares you have invested in and also get an advantage of applying leverage.
On the other hand, if you choose to buy AstraZeneca by share dealing then that means you are investing in shares and getting direct ownership of the shares. That means, if the price of the shares goes up, you will make a profit and if the price of the share goes down you will make a loss.
How to buy AstraZeneca Shares through a trading platform?
With thousands of trading platforms, we are here taking eToro as an example to make you understand how to buy AstraZeneca Shares because it is our favourite trading platform for various reasons. Following is a step by step guide so that you get a crystal clear understanding of how to purchase AstraZeneca Shares through eToro.
Step1: create an account
The very first step to buying AstraZeneca shares is to create an account on the official website of eToro. To do so you are required to fill in a registration form by entering in your basic details such as your name, phone number, e-mail address, and setting a strong password. After entering all of your details make sure to accept terms and conditions.
eToro will ask you to verify your identity by uploading some of your documents, don’t worry as your documents are truly safe on this platform. However, you don’t need to undergo verification until you deposit more than $2,250 or you request a withdrawal.
Step 2: Fund your account
Now that you have successfully registered on this platform you are now all set to fund your account by making a minimum deposit of £160. This funding amount isn’t the fee of the robot but the working capital that is needed by the traders to execute trades.
eToro offers several payment methods for the convenience of its traders and you can choose whatever method you feel more comfortable with. The payment methods supported by eToro are Debit/Credit Card, PayPal, Skrill, Nettler, and Bank Transfer.
Step 3: Make your purchase
Now that you have successfully registered and funded your trading account, you are now all set to buy AstraZeneca Shares. To do so, all you are required to do is to enter ‘AstraZeneca’ or “AZN” into the search engine at the top of the page and once entered click on the result that appears in front of you. Then click on the ‘Trade Button’, enter your desired amount and then click finally on ‘Open Trade’ to buy your AstraZeneca Shares.
On this platform, you can buy or sell AstraZeneca shares as long as your transaction involves a minimum of £40. You also have the privilege to apply Leverage and you can also set a stop loss or take profit level for your trade using the order form.
Keep it or Sell it?
Right now the company’s difficulty in rolling out covid 19 vaccines can be sound as a weakness but this is not gonna be the case forever. It has several ongoing projects that have the potential to take the company to the next level in the coming years. The most important thing to note here is that the vaccination has also proven safe.
It has been clearly proved that the vaccine has nothing to do with the blood clots and the company is still ramping up its manufacturing as it has been predicted that in the coming year many developing countries will choose this vaccine over others in enormous quantities because of its affordable price. That means the company will however manage to survive from this bad phase also.
And, another most important thing to note down here is that the company’s true strength lies in oncology which accounts for a much larger portion of revenue than that of the covid 19 vaccine. Simply put, the company’s oncology division is alone enough to push the share price higher and higher with each passing year as it is leading in cancer-fighting drugs.
Basically, for those who are willing to do a long term investment, keeping AstraZeneca is a win-win.
From all the above depth in research about AstraZeneca Shares, we have concluded that Investing in the gigantic pharmaceutical company AstraZeneca sure has the potential of offering more in the future. The AstraZeneca shares are the most favourite investing assets among UK traders as it offers an attractive dividend yield of 2.8%.
Although the company has gotten poor appreciation in Europe because of its poor rollout of vaccines, its oncology division alone is enough to make its share price go higher year by year. Also, it has many ongoing projects, which can be highly fruitful in the long term.
So, if you are ready to invest in AstraZeneca shares, do it with our most favourite trading platform, eToro.
- Is it a good time to buy AstraZeneca Shares?
AstraZeneca shares have shown rapid growth in the past two decades. It has been a favourite among UK traders as it offers very attractive dividends and its ongoing projects are definitely fruitful as all of these projects have the potential of making millions each year. The company is also the leading one in the treatment of oncology, and its oncology division is alone enough for the immense growth of the platform.
It has also developed a covid 19 vaccine and is still manufacturing orders, though the vaccine is rejected in a few countries it sure is gonna make huge sales in the developing countries. That means in the long run AstraZeneca share price will go at a peak so purchasing AstraZeneca shares today is definitely a good time.
- Which is the Best Platform to buy AstraZeneca shares?
The best Platform to purchase AstraZeneca shares is eToro. The platform is regulated, commission-free and trustworthy. It is the most favourite platform of almost every trader. However, all the above mentioned are the best ones if you are thinking about investing in AstraZeneca shares.
There are also other trading platforms that offer you AstraZeneca shares but before you choose any of those Platforms make sure to consider a few metrics, such as regulations, fees, payment methods, Commissions, and spreads
- Does AstraZeneca operate in the global market?
Yes, Emerging countries other than Europe and the UK are responsible for 36% of the company’s sales. The company sells drugs and treatments all around the world and it has been making its mark in the emerging markets as well with its ongoing and upcoming projects.
- How much AstraZeneca contributed to the research?
The company AstraZeneca is known for making contributions from time to time for healthcare research and development. In 2019, the company spent nearly £5 billion on research and development which is equivalent to 25% of the company’s annual revenue.
- Will AstraZeneca dividend grow over time?
Dividends are never fixed and depend on the company’s performance. If the company is doing great then its payout will also be great but if it fails to make a place for itself in the market then naturally the dividends it pays will be very poor. But, if we look at the performance of AstraZeneca, the company has outperformed itself and is actually known for offering handsome dividends. Though the company hasn’t announced any dividend increase for the present year, it might change with the change in the performance.