Should I Sell Standard Life Shares?

Most people need to decide whether to sell or hold on to their shares based on their own current financial circumstances and how they think the stock market will perform. However, there is no substitute for advice from a stockbroker who knows the markets. Using a stockbroker who gives advice will cost significantly more than an execution only service.

Standard Life have arranged a share dealing service. However if you have a share certificate, you may want to arrange an alternative online share dealing service which may be cheaper. Some people who have held onto their demutualisation shares in other companies (eg Northern Rock) saw a decent increase in share value over the years. However Norwich Union (now Aviva) has only increased by about 20% in total over a number of years and Northern Rock started 2008 at significantly less than their float price

Following the failed Resolution bid and the jitters surrounding Northern Rock, Standard life shares started 2008 at around the original float price. Analysts still reckon them to be a hold while some people think this is a buying opportunity. By spring 2008 when the 2007 dividend was announced the Standard Life share price stood at around 245p

For those who opted to receive a share certificate and then sell later, a number of companies provide online execution only trading. Amongst the best deals for execution only sales are from Halifax, Barclays and TD Waterhouse at around £10 - £13 per deal.

Having obtained their Standard Life shares, some policy holders may feel it best to cash in their policies following demutualisation, on the suspicion that bonuses may diminish to pay for shareholder dividends. Most policies will achieve up to 10% more if you sell the policy rather than cash in with Standard Life

Standard Life's final dividend for 2007 is 7.7p per share, payable on 30th May 2008.