Never bought UK shares and want to know how to start?

In recent years, it might seem that UK shares have been left in the dust by their US counterparts.

In reality though, the past five years have seen the FTSE 100 index of leading UK shares grow 51%. That is less than the 68% growth of the US S&P 500 during that period but is impressive nonetheless.

Plus, the Footsie’s 3.1% dividend yield is much more lucrative than the 1.1% yield currently offered by the S&P 500.

There are other potential attractions to UK shares for a British investor beyond performance.

For example, UK-based investors may have more personal experience of the companies and a clearer first-hand understanding of their likely prospects than when investing in overseas stocks.

Is now the right moment to start buying shares?

One question that can trouble people when they think about investing is whether the timing is right.

What if the market crashes? What if share prices go down and you own something that is worth less than you paid for it?

Those are understandable concerns. In reality though it is impossible to time the market accurately – nobody knows for sure what it will do next.

Sitting on the sidelines can avoid potential losses – but also potential financial gains and the opportunity to build wealth.

So my approach is based less on ‘when’ and more on ‘what’.

Buying into high-quality UK shares at attractive prices – whatever the wider market is doing – and then holding them for the long term, I hope that I can benefit from some of the growth opportunities in the stock market.

How to start investing

Of course, to start investing, there are some practical points to consider too.

For example, how much to invest? That depends on an individual’s financial circumstances.

Another question is what to aim for – growth, income or both? Answering that involves getting to know more about how the stock market works and key concepts like share valuation.

It is also necessary to have a practical way to buy shares, such as a share-dealing account, Stocks and Shares ISA or dealing app.

Here’s a share I think is worth a look

One UK share I think is worth investors’ consideration right now is FTSE 100 consumer goods maker Reckitt Benckiser (LSE: RKT).

It is 14% cheaper now than a year ago. That reflects a number of concerns investors have about the owner of brands such as Finish and Dettol, from the impact of cost inflation on profitability to weakening consumer confidence eating into discretionary spending on brands.

Quarterly results released this week showed the third quarter’s net revenues grew less than 1% year on year in Europe and declined in the key North American market.

Still, I am a long-term investor and continue to like Reckitt’s proven business model and cash generation potential.

Its premium brands help it make attractive profits and fund a dividend. The current yield of 4.1% is well ahead the 3.1% of the wider FTSE 100.

What income stock do we like better than Reckitt Benckiser Group Plc right now?

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Christopher Ruane does not hold any positions in the companies mentioned.