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The best supermarket shares in the UK

If you want to put your money in shares, the supermarket is still a growth area. In spite of financial woes and difficulties, everyone has to eat everyday. Scandals such as the recent horsemeat fiasco affected shares but they have since climbed back to recovery. We tell you the best supermarket shares to buy.

The big 4

  • Tesco

Tesco is still one of the top ten UK retail brands with a value of £7.2 billion. It is one of the best supermarket shares in the UK to buy. In spite of the recent scandal involving horsemeat which has affected other countries in the EU as well, it is still way ahead of Marks & Spencer which came in second. Its success under the helm of Sir Terry Leahy is well-known and although he stepped down in 2011, Tesco is now backed by powerful investors such as American Warren Buffett and investment mogul, Neil Woodford. The scandal shaved £300 million off its market value, but since then Tesco has made a decent recovery with a high of 385p.

  • J Sainsbury's

J Sainsbury’s upped its efforts when Tesco concentrated on international expansion. As a result, their shares increased by as much as 10pc and currently, share values are at an all-time two-year high of 378p. Investors are invited to hold on to their shares for handsome dividends since they are expected to trade from 330p to 380p. Its brand value is estimated at £700 million. Sainsury’s shares have a yield of 4.35pc compared to the 3.98pc of Tesco.

  • Asda

Asda holds the 4th spot on the list of top 10 UK retail brands with a brand value of £1.1 billion. Employees have the chance to invest in its parent company, Wal-Mart using the Save as You Earn scheme. The company updated its sales figures following the £3.9-billion profit of Wal-Mart during the first quarter of 2013.

  • Morrisons

The lack of an online presence and the lukewarm reception to their store revisions contributed to the lacklustre performance of Morrisons. Nonetheless shares at Morrisons have a yield of 4.28pc. Plans for 2014 include an online presence and an aggregration of 100 small stores.

When to buy or sell

To know the best supermarket shares, have a look at their respective sites. For example, there’s a share price calculator on Tesco which gives you an overview of current prices. There is also a historic share price calculator where you can see how the shares you bought have evolved over the years inclusive of current value of holding as well as its movement since purchase date.

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