With a market capitalization of over $15 billion – A2 Milk is one of the largest companies on the New Zealand Exchange (NZX). This means that you should have no issues making an investment from the comfort of your home.
In this guide, we explain how to buy A2 Milk shares online in New Zealand. We also discuss which brokers you should consider buying the shares from based on fees, reliability, and safety.
In This Guide
In This Guide
In This Guide
If you want to buy shares in A2 Milk, you will need to find a stock broker that meets your needs. There are several factors that you need to consider when joining a new platform – such as how much the broker charges and whether or not your money is safe.
To help point you in the right direction, below you will find a selection of New Zealand share brokers that allows you to buy A2 Milk shares with ease.
Lots of New Zealand investors prefer to ‘trade’ A2 Milk shares in the form of CFDs. This allows you to choose which way you think the markets will go. In other words, CFD platforms like Plus500 give you the option of placing a buy or sell order – which offers great flexibility. In total, Plus500 offers more than 2,000+ share CFDs, including many of the best shares to buy or sell. On top of New Zealand companies like A2 Milk, Air New Zealand, and Fisher and Paykel, this also includes markets in the US, UK, France, Germany, and more.
Regardless of the share CFDs you trade at Plus500, you will not pay any commission. You will, however, need to look out for the spread. An additional benefit of using Plus500 to trade A2 Milk shares is that you will have access to leverage facilities. The CFD provider offers leverage of up to 1:5. The specific amount that you get will depend on what you are trading and how much experience you have with leveraged financial products.
Outside of its share CFD department, Plus500 offers heaps of other asset classes. This includes indices, hard metals, energies, forex, cryptocurrencies, and interest rates. Once again, all of these products can be traded commission-free. If you do choose Plus500, you will be able to trade via the platform’s main website. This means that there is no requirement to download or install any third-party software. You will also be able to trade via the Plus500 mobile app.
Opening an account at Plus500 takes just minutes. Once you have registered, you can deposit funds with an NZ debit/credit card, bank account, or e-wallet. Minimum deposits amount to £100 (about $200). Plus500AU Pty Ltd (ACN 153301681), licensed by: ASIC in Australia, AFSL 417727, FMA in New Zealand, FSP 486026; Authorised Financial Services Provider in South Africa, FSP 47546.
- Commission-free CFD provider – only pay the spread
- Thousands of financial instruments across heaps of markets
- Ability to trade stock CFDs with leverage of 1:5
- You can buy or sell a companies Share CFDs if you think its value will go up or down
- Takes just minutes to open an account and deposit funds
- Excellent mobile trading app
- CFDs only
CFD Service. Your capital is at risk.
Launched way back in 1974, IG is a highly trusted brokerage firm. The platform is now involved in share dealing, CFDs, and spread betting. You will be able to trade A2 Milk shares at IG, so you have the option of going long or short. Once again, this offers you much more flexibility in comparison to simply buying the shares in the traditional sense.
Much like Plus500, IG also offers leverage facilities. This allows you to trade with more money than you have in your account. For example, staking $100 at IG with leverage of 1:10 would amplify your position to $1,000. In terms of fees, IG charges a competitive commission of 0.1%. However, this does stand at a minimum of $8 per trade, so smaller positions might not be suitable.
On the flip side, IG does offer some very tight spreads. For example, both the sell and buy price of A2 Milk share CFDs stands at $19.57 at the time of writing. This means that you are getting near-wholesale rates. Interestingly, 83% of clients at IG are currently long on A2 Milk, meaning that they think its share price will increase. An additional benefit of trading at IG is that you will have access to MT4. You can also trade on your mobile phone via the IG app.
Outside of stock CFDs, the platform also offers other asset classes. This covers ETFs, digital currencies, forex, indices, and commodities. Accounts at IG also take just minutes to open, and minimum deposits start at £250 (about $500). Supported payment methods include a debit card, credit card, or bank account transfer. With more than four decades in the industry, IG takes security and safety very seriously. This includes fully-fledged licenses with ASIC and the FCA.
- Trusted NZ broker with a long-standing reputation
- Good value share dealing services
- Leverage and short-selling also available
- Spread betting and CFD products
- Access to heaps of international stock markets
- Great research department
- Minimum deposit of £250 ($490 NZD)
- $8 minimum commission
Once you have selected an NZ share broker that meets your needs, it is wise to then perform some research on A2 Milk. After all, there is never any guarantee that you will make money on a share purchase, so it’s crucial to assess whether or not A2 Milk represents a viable long-term investment.
With that in mind, below we discuss some handy information on A2 Milk shares.
A2 Milk is a large-scale New Zealand company that provides intellectual property for its ‘A2’ brands. Founded in 2000, the company now serves several regions. On top of its domestic market, this also includes the UK, US, China, Malaysia, Canada, and Hong Kong. In terms of its public listing, A2 Milk Company shares are situated on the NZX. In fact, with a current market capitalization of over $15 billion, it is one of the largest constituents of the NZX 50 Index.
Taking a quick trip down memory lane, A2 Milk shareholders have been rewarded handsomely over the past 16 years. Back in 2004, you would have been able to buy A2 Milk shares at just $0.33 per stock. Since then, the shares have been growing at an exponential rate. At the time of writing in August 2020, A2 Milk shares will cost you in the region of $21. This translates into growth of over 6,200% since its 2004 listing.
As great as the A2 Milk share price growth has been, one of the stand-out talking points for investors is how the firm was virtually immune from the wider COV-19 pandemic. Let’s take the NZX 50 Index as a prime example. The Index – which is an effective way to gauge the health of the New Zealand economy, went from 11,592 points to 8,498 points between January and March 2020.
This represents a decline of 26% in just under 3 months. During the same period, A2 Milk company shares went from $14.82 to $15.94. Firstly, this represents a growth of 7.55% in just over 10 weeks, which is huge. However, the main takeaway from this is that while the wider NZX lost 26% as per the COV-19 mass sell-off, A2 Milk defended its position with ease. As a result, the company is outperforming the wider NZ financial markets by some distance.
A2 Milk Dividend Information
Although A2 Milk NZ shares have performed extremely well over the past 16 years, the firm is yet to pay any dividends. On the one hand, this does mean that you will not be able to supplement your gains with regular income. On the other, A2 Milk is currently in the all-time high territory. Put simply, this means that there are plenty of opportunities to grow your money through long-term capital gains.
Still, sitting on the fence as to whether or not you should buy A2 Milk shares? If so, below we list some useful information that will hopefully point you in the direction. You should, however, perform your own in-depth research before making an investment decision.
Plenty of Room for Continued Growth
As we covered in the section above, A2 Milk NZ shares have been growing non-stop since the firm went public. With a growth of over 6,200% over a 14 year period, the shares are now worth more than they have ever been. With that said, this isn’t to say you have missed the boat on an investment.
On the contrary, many would argue that A2 Milk still has a long way to go. Taking into account its global reach, A2 Milk’s $15 billion market capitalization is potentially worth just a fraction of its true future value.
Core Products Protected it From COV-19 Sell-Off
The global stock markets – including that of the NZX, saw a mass sell-off in March 2020 as per the COV-19 pandemic. With the NZX losing close to 26%, A2 Milk remained virtually untouched. This was largely down to the firm’s core product range. Notably, with consumers stock-piling key supplies such as its infant formula, revenues were above and beyond what the markets expected.
Crucially, one would argue that A2 Milk is potentially a “safe bet” in times of economic uncertainties. After all, milk products will always be in demand from consumers irrespective of how the wider economy is performing.
Step 3: Open an Account and Deposit Funds
If you have performed the necessary research and you want to buy A2 Milk shares right now, the next step is to open an account with your chosen share broker. Although the registration process remains largely constant across all online stock trading sites, we are going to show you the steps with the commission-free platform Plus500.
Visit the Plus500 website and look out for the ‘open an account’ button. The CFD platform will now collect some personal information from you.
This includes your:
- First and last name
- Home address
- Date of birth
- New Zealand tax identification number
- Contact details
As Plus500 is a heavily regulated trading platform, it is legally required to ask you for some ID. Although you don’t need to provide this straight away, it’s best to do it now to remove the limitations on your account. As such, upload a copy of your NZ passport/driver’s license and a proof of address. This can be a recently issued utility bill or bank account statement.
You will now be asked to fund your Plus500 trading account. You can do this with the following payment methods:
- Debit card
- Credit card
- Bank account transfer
As we discussed earlier, you will need to meet a minimum deposit of £100. This works out at about $200 NZD.
As soon as your Plus500 account has been funded, you can proceed to trade A2 Milk shares. To go straight to the respective trading screen, enter ‘A2 Milk’ into the search box, and click on the result that loads up.
After that, you will see an order box positioned to the right-hand side of the page.
This might appear somewhat intimidating if you have never placed a share CFD order before, so be sure to read through the pointers listed below.
- Select a ‘buy order’ if you think A2 Milk company shares will increase in value, or a ‘sell order’ if you think they are overpriced.
- Enter the amount that you want to stake on the trade.
- If you want to add leverage to your order, select the size of the multiple (1:2, 1:5, etc.).
- Select from a market or limit order. If it’s the former, you will get the next available market price.
- If you want to, set up a stop-loss and/or take-profit order.
Once you confirm the trade, your profit or loss will be determined by the future share price of A2 Milk. You can exit your position at any given time during standard market hours.
All in all, it appears to be up, up, and a way for A2 Milk. Looking at the firm from a long-term perspective, its shares have grown rapidly since its public listing in 2004. At 6,200%, it has outperformed virtually every other stock listed on the NZX 50 Index.
With that said, its short-term price action has been just as impressive. After all, A2 Milk is one of the few NZ stocks to have grown in value since the COV-19 pandemic begun.
If you are keen to start trading A2 Milk share CFDs today, we would suggest considering our top-rated platform Plus500. Not only will you be able to trade A2 Milk on a commission-free basis, but you will be accustomed to competitive spreads. Simply click on the link below to go straight to Plus500 now!
CFD Service. Your capital is at risk.
What is the A2 Milk share price?
At the time of writing, A2 Milk shares are worth $21.11 per stock. This is just shy of its recently achieved all-time high of $21.51.
What stock exchange is A2 Milk listed on?
A2 Milk company shares are listed on the New Zealand Exchange. With one of the largest market capitalizations in the country, A2 Milk now forms part of the NZX 50 Index.
Does A2 Milk pay dividends?
Although A2 Milk has performed strongly over the past 16 years, it is yet to pay any dividends. As such, you only stand to make money in the form of capital gains.
Can you short A2 Milk shares?
You certainly can. By using a trusted CFD platform like Plus500 or IG, you can short-sell A2 Milk share CFDs with ease. In fact, if using Plus500, you can do this without paying any trading commissions.
How much were A2 Milk shares originally?
Had you purchased A2 Milk NZ shares back in 2004, you would have paid around $0.33 per stock. Had you then held on to the shares until August 2020, you would be looking at gains of over 6,200%.