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17 September 2021
21:33 hour

Should I buy Lloyds Banking Group shares now?

The Motley Fool UK

14/02/2021 - 10:58

City analysts expect earnings and dividends to bounce back by three-figure percentages this year. This is what I'm doing about Lloyds shares. The post Should I buy Lloyds Banking Group shares now? appeared first on The Motley Fool UK.


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  1. The Lloyds share price: what have I learned from it? (11/03/2021 - The Motley Fool UK)
    If any share makes me wonder what lessons I’ve missed over the past 10 years, it’s Lloyds Banking Group (LSE: LLOY). And I know my biggest weakness isn’t knowing when to sell. I bought at around 90p per share, and the Lloyds share price is now hovering around 40p. So I’d clearly have been better off had I sold, but how could I have known when? I like to look forward in my investment thinking. But we have to learn from our mistakes. And, more importantly, looking back can help me decide what to do in the future. I bought Lloyds shares when the banking sector was emerging from the financial crisis, and dividends were just reappearing. Lloyds, along with what was then Royal Bank of Scotland (now NatWest Group) had come through their government bailouts. RBS was about a year behind in getting its dividend back, and I went for Lloyds — in part because I saw significantly less uncertainty. And the Lloyds share price was recovering. But roll on to 2016 and the Brexit referendum. The result shocked me. I really wasn’t expecting it to even be close. Banking shares quickly lost ground, so should I have sold then? Here’s where I definitely made a mistake. I like to follow Warren Buffett’s approach to situations like that. When something rocks one of my companies, I should step back and look at the whole thing afresh. The need to step back Thinking about it in terms of my Lloyds, the bank I knew so well, that was my error. I should have abandoned all I knew, and done my analysis from scratch again. Had I done that, would I have sold? Well, I’d have been shaken by the amount of uncertainty the Brexit result had thrown up. I held shares in a strengthening bank operating in a Europe-wide market, with London being the banking centre of the continent. That, the core of the bank’s strength, was thrown away overnight, and yet I sat on a tumbling Lloyds share price and did nothing. We didn’t know what the full fallout of that referendum result would be. We didn’t know what banking rights the UK would be left with. But we surely did know that things would never be the same again. I don’t know if I’d have sold had I approached it properly. But I did make a key mistake of not taking full account of what happened. Latest Lloyds share price crash But what about the Covid-19 pandemic? Since that took hold, the Lloyds share price has crashed by 30%. So was that another missed selling opportunity? No, I don’t think so. I certainly wouldn’t have been quick enough to sell before the initial crash — and I don’t do panic selling anyway. The Lloyds share price fell more than 30% in a couple of weeks, and slumped to a 50% loss not long after. But it’s recovering. Saying that, the banking sector has changed fundamentally again. And again, that means it’s time to re-evaluate from scratch. I think I’ve done a better job of it this time. And with dividends returning (again), I’m definitely not selling now. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading Lloyds share price forecast: is 50p obtainable this year? The Lloyds share price has increased by almost 50%. Here’s what I’d do This is what I’d do right now about the Lloyds share price The Lloyds share price keeps falling! Should I buy the stock now? Lloyds Bank share price: back to pre-crash levels of 40p. Should I buy it now? Alan Oscroft owns shares of Lloyds Banking Group. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Lloyds share price: what have I learned from it? appeared first on The Motley Fool UK.
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  2. If I could only invest in one banking stock, I would buy Lloyds shares (11/05/2021 - The Motley Fool UK)
    Lloyds Banking Group  (LSE: LLOY) has been on many investors’ minds in recent weeks. Despite concerns that Lloyds’ final dividend payment would cause volatility, the banking group’s share price continues to rise.  In fact, shares in Lloyds have risen almost 60% in the past year, from 30p to 48p. With that in mind, it’s still one of the first banking stocks I’d buy right now. Lloyds Banking Group’s financials Lloyds Banking Group is the archetypal high street bank. It makes its money through retail and commercial banking, investments, and long-term savings, like most of its competitors. Why am I so bullish about it though? After all, Lloyds had a poor 2020. Profits fell 70% year-on-year to £1.2bn due to ultra-low interest rates and lower spending — just two of the many consequences of Covid-19. But there was a lot to be optimistic about. For the quarter ending September 30 2020, Lloyds held more than £200bn in reserves, a 30% increase year-on-year. Its tier 1 capital ratio — the ratio of Lloyds’ total equity capital to its total risk-weighted assets — was a healthy 15.2% at the end of its last fiscal year. A rising Lloyds share price  At its Q1 earnings call in late April, profits were well above estimates. Underlying profits hit £2.1bn, well above the £74m it reported in the same period last year when loan loss charges almost wiped out earnings. Lloyds also showed its confidence by releasing £323m from a cash pile that was originally intended to cover bad debts in Q1 this year. This was a stark contrast to the £1.4bn charge it took in Q1 2020 and signals subtle confidence that the UK economy will recover well amid ongoing vaccination success. Not only that, but these are all strong signs that Lloyds is returning to some kind of pre-Covid normality. I also believe that pent-up wanderlust will lead to a rise in holiday and other loans as the British public seeks to truly shake off the shackles of lockdown.  Risks to Lloyds’ share price But while the bank’s close-knit relationship with the UK economy is positive for now, that could quickly turn. The global economy as a whole has been devastated by Covid-19, with the recovery expected to be long and arduous. The UK is no exception, and should there be a wave of vaccine-resistant Covid-19, then Lloyds could be back with the issues it faced in 2020.  What’s more, uncertainties around whether the company will pay a dividend in 2021 are still fresh in investors’ minds. Due to Covid-related Bank of England regulations, the company was forced to set an ex-dividend date (the day on which all shares bought no longer come with the right to be paid) of April 15, with a final payment to come on 25 May. However, as soon as these restrictions are lifted, Lloyds has stated its intention to resume its pre-Covid dividend policy. The only question now is ‘when’ this will happen. Lloyds’ growth potential Lloyds is still among the top banks in the UK. It has come through a tough 2020 with plans to expand its small business offering as well as its focus on larger corporate clients. This will reduce its overexposure to loans and interest rates, and could create new avenues to grow profits. I believe that it is an exciting time to buy shares in this bank. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Lloyds’ share price is rising. Should I buy today? As the Lloyds share price stays cheap, I’d invest £5k Will Lloyds pay a dividend in 2021? Why I am buying Lloyds shares now The Lloyds share price leapt 7% last week. But it could go much higher Jamie Adams has no position in Lloyds Banking Group. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post If I could only invest in one banking stock, I would buy Lloyds shares appeared first on The Motley Fool UK.
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  3. Here’s what I’d do about Lloyds Banking Group stock right now (08/04/2021 - The Motley Fool UK)
    Since I last wrote about Lloyds Banking Group (LSE: LLOY) on 24 February, the stock has moved around 10% higher. But near 44p, it still looks cheap against conventional valuation measures. Lloyds Banking Group stock looks cheap For example, the price-to-tangible asset value is close to 0.8. And the forward-looking earnings multiple for 2022 is just below nine. On top of that, shareholder dividends are back on the agenda. And at this share price level, the anticipated yield for next year is above 5%. City analysts expect a strong recovery in earnings. They’ve pencilled in a robust, triple-digit percentage rise this year, followed by a further advance of around 16% in 2022. If this was a growth business, I’d be licking my lips for such a strong earnings outlook at such a modest valuation. But it isn’t. Neither is Lloyds Banking Group stock a decent income play, in my view. The yield is high now, but there’s a long record of volatility when it comes to shareholder payments. And the reason is that revenues, earnings and cash flow have been volatile as well. It hardly needs mentioning that the multi-year share price chart looks like a choppy sea. But overriding those ups and downs, a clear long-term downtrend has been in place for the entire century, so far. Will that all change soon? I don’t believe so. Tempting as it might be to analyse Lloyds as a growth proposition, or an income stock, I’m not going to. There’s only one way I’ll look at Lloyds and that’s through the lens of its cyclicality. And banks are among the most cyclical businesses that exist. They’re joined at the hip to the ups and downs of the wider economy. And that’s why the stock has been shooting up recently. A short-term flutter? In fairness, I don’t reckon the short-term up-move has run its course. Those analysts predict earnings will be back near their pre-Covid highs by 2022. So I see every reason for the share price to get back to its 2019 level just above 60p. And my guess is it’ll probably get there by the end of this year and maybe well before that. However, I reckon it’ll struggle to make progress beyond that because of the possibility of valuation contraction. We saw that between the financial crisis and the Covid-crash. Earnings kept notching up, year after year, but the valuation kept clicking down to compensate. And there was a good reason for that. The stock market ‘knows’ all about the cyclicality in the underlying business, so it waits for the next crash in earnings. And that’s especially true after a long period of high profits. The Lloyds Banking Group stock valuation looks cheap right now, but it probably isn’t. And earnings are almost back to their previous highs, making the investment proposition less attractive to me, at least in the long term. I’d buy Lloyds shares now for the rest of the short-term move I reckon is coming. But I’d keep one hand on the ejector seat lever. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading The Lloyds share price is back above 40p! I think this is just the start UK shares to buy now: here’s what I’d do with a £500 investment These FTSE 100 shares are rising. Here what I’d do Buying the Lloyds Bank share? Here are 3 metrics I’d consider first The Lloyds share price is up 76% in six months. Am I too late to buy? Kevin Godbold has no position in any share mentioned. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Here’s what I’d do about Lloyds Banking Group stock right now appeared first on The Motley Fool UK.
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  4. Could renting property boost the Lloyds share price? (27/08/2021 - The Motley Fool UK)
    When one thinks of Lloyds (LSE: LLOY), what comes to mind is typically its banking operations. But the company has a broader financial services offering than banking alone. Currently it is planning to move into owning and renting residential property on a big scale. Here I consider what that might mean for the Lloyds share price. Lloyds the landlord The bank has set up a residential renting venture, known as Citra Living. It will start by buying newly built properties to rent out. The company plans to buy 400 this year and the same again in 2022. But some analysts believe that the company’s ambitions could ultimately run into tens of thousands of units rented out to tenants. For now, detailed information is not available so it’s not yet clear what the possible financial results of such a business will be. In any case, setting up a new business often takes time and money. I don’t expect the new business to be a significant contributor to either revenues or profits at Lloyds for some years to come. The banking business model Lloyds already has a lot of knowledge and expertise when it comes to the residential property market. As the UK’s largest mortgage lender, it has an intricate understanding of everything from valuations to people’s ability to repay. Add to that its well-known brand name and I can certainly see a strategic logic to its move into renting out homes. But there are two reasons I don’t like the proposed move into renting by Lloyds. First, I don’t think the banking business model is the same as that of being a landlord. Landlords are directly exposed to the property market. So if there is a property crash, for example, the value of their assets can fall sharply. In banking, by contrast, it’s possible to make money charging interest on mortgages whatever happens to property prices. It’s not without risk, of course: in a recession, defaults can soar. But the risk profile is different to that of letting property. Unlike renting property, banking is heavily regulated and barriers to entry are high. That helps sustain profits for a handful of leading banks such as Lloyds. Secondly, I think that the move could distract Lloyds’ management. The bank has made good progress in recent years. But the Lloyds share price is still a fraction of what it was before the financial crisis. In 2008 Lloyds became a penny share. It has remained one ever since. Meanwhile, the core banking business has become more competitive. Fintech companies now challenge banks like Lloyds in traditionally lucrative business areas such as foreign currency payments. I think Lloyds’ executives need to focus fully on their banking business.  So while a successful rental business could boost the Lloyds share price, I am concerned that in fact it could well hurt it. The Lloyds share price I have been optimistic about the prospects for Lloyds as a shareholder myself. But the latest move has dampened my enthusiasm. I plan to hold my Lloyds shares for now. But I will keep a close eye on the bank’s future results. I’m concerned management could take its eye off the ball in banking. That risks damaging profits as the bank seeks to recover from the pandemic. That could hurt the Lloyds share price. The post Could renting property boost the Lloyds share price? appeared first on The Motley Fool UK. Inflation Is Coming: 3 Shares To Try And Hedge Against Rising Prices Make no mistake… inflation is coming. Some people are running scared, but there’s one thing we believe we should avoid doing at all costs when inflation hits… and that’s doing nothing. Money that just sits in the bank can often lose value each and every year. But to savvy savers and investors, where to consider putting their money is the million-dollar question. That’s why we’ve put together a brand-new special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation… …because no matter what the economy is doing, a savvy investor will want their money working for them, inflation or not! Best of all, we’re giving this report away completely FREE today! Simply click here, enter your email address, and we’ll send it to you right away. More reading Lloyds Bank: what’s holding back this penny stock? Where will the Lloyds share price go in September? This FTSE 100 bank wants to become a landlord. Should I buy? Why is the Lloyds share price so cheap and will it ever change? 2 of the best penny shares to buy now Christopher Ruane owns shares in Lloyds Banking Group. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  5. The Lloyds share price is up 50%. I’d still buy. (11/06/2021 - The Motley Fool UK)
    Shares in Lloyds (LSE: LLOY) have put in a solid performance of late. Over the past 12 months, the Lloyds share price is up 50%. Even after that increase, I would still buy Lloyds shares for my portfolio. Here are three reasons why – and one risk I see. Leading high street position Lloyds itself has a well-known brand name and iconic black horse logo. Not only that, the group owns other banking brands with regional strength, such as Halifax and Bank of Scotland. That means that the company is well-positioned to keep attracting new business long into the future. With a large branch network, growing online presence, and market leading position in mortgage lending, I see Lloyds’ prominence in customers’ minds as an asset. It should help the company continue to generate substantial revenues and profits in future. Clear strategic focus Banking, when performed efficiently and cautiously, can be highly profitable. History shows that many banks stumble by getting involved in exotic markets or costly investments without properly assessing the risk. That is what caused the last financial crisis – but it’s also what caused many bank failures across the preceding centuries. Lloyds has a very clear strategy. I think that could help bolster the Lloyds share price. It is squarely focussed on its home market. It is also specialised in retail and commercial banking. So, for example, it doesn’t have the investment banking exposure of rival Barclays, or the global presence of UK-listed banks like HSBC and Standard Chartered. That risks lower profits when other markets outperform the UK, for example. But it also cuts risk in my view, by making the whole business easier to understand and manage. On top of that, it makes sense to focus on UK banking as a way to capitalise on its strong position in this market. Dividend impact on the Lloyds share price The company has restored its dividend. While it is still constrained by its regulator as to how much it can pay, Lloyds is currently paying out the maximum it can. It has also indicated it plans to return to a progressive dividend policy. Meanwhile, the company’s CET liquidity ratio at 16.7% is well ahead of its target of around 12.5%. In layman’s terms, that means the cash pile it could use to help fund future dividends has been growing. As the dividend grows, I expect that to help boost the Lloyds share price. So I would still buy the bank’s shares today, both for income and growth potential. Lloyds share price risk However, all shares carry risks and this is true of Lloyds. For example, the heavy exposure to the UK housing market may be positive right now. But in the event of a housing market downturn, it could leave the bank nursing heavy provisions for bad loans. That could damage both revenues and profits. My next move I already hold Lloyds in my portfolio. But I continue to see it as an attractive investment opportunity at the current price. I would consider adding more Lloyds shares to my holding. The post The Lloyds share price is up 50%. I’d still buy. appeared first on The Motley Fool UK. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading The Barclays share price gains 25% in 2021, with Lloyds at 35%. Which is better now? Lloyds share price: here’s my outlook for the rest of the year The Lloyds Bank share price has touched 50p. Here’s what I’d do now Where will the Lloyds share price go in June? The Lloyds share price is still rising: here’s why I’d buy now christopherruane owns shares of Lloyds Banking Group and Standard Chartered. The Motley Fool UK has recommended Barclays, HSBC Holdings, Lloyds Banking Group, and Standard Chartered. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  6. The Lloyds share price is climbing in February. Should I top up my holding? (18/02/2021 - The Motley Fool UK)
    As a Lloyds Banking Group (LSE: LLOY) shareholder, I’m happy to see the price up 12% so far in February. But if you’d told me five years ago that I’d be pleased by a 37p Lloyds share price today… well, you know. The 12-month performance is still pretty shocking, with Lloyds shares down 34% as I write. Obviously that’s all down to the Covid-19 pandemic. Well, actually, maybe not entirely. There must be a Brexit factor there too, but it all leads to pain for shareholders, wherever it comes from. Negativity towards Lloyds does seem to be easing off, though, since Covid-19 vaccine progress has brought some cheer. Since a 52-week low of 23.58p on 22 September 2020, the Lloyds share price has gained 58%. It would have been nice if I’d topped up my Lloyds holding back in September, but why am I considering buying some more now, after that impressive rebound? First, I want to look at the downside risks. As my Motley Fool colleague Kevin Godbold has pointed out, Lloyds is facing a potentially tough economic environment. The UK banking industry is a shadow of what we had back before that Brexit referendum. And the trade deal that our Prime Minister seemed so proud of has offered pretty much nothing to the UK’s banks. Lloyds facing uncertain economics Lloyds is UK-focused these days, which I reckon was a wise strategic move. And with a total of more than 30m customers, there’s still plenty of business. But we really don’t know how long the economic hardship from the pandemic will last — and I think Lloyds could be particularly affected by any lingering weakness. We have no real idea of the size of the actual fallout from Brexit either. Our negotiated exit has most definitely not left us with barrier-free trade. So what about the bull case, from today’s rebased Lloyds share price? Well, Barclays has announced a pandemic-related impairment charge amounting to £4.8bn. I’m not going to try to guess at what Lloyds’ figure might be, but we’ll know soon enough. Lloyds will be releasing 2020 full-year results on 24 February. I think there could be some painful reading there. But the latest from Barclays reflects some of my reasons for feeling bullish about Lloyds right now. The key development is the reinstatement of Barclays’ dividend. It’s only a modest 1p per share for 2020, but it’s a start. On top of that, Barclays plans to buy back £700m of its own shares. Boss James E Staley reckons shareholders should see a meaningful improvement in returns this year. Lloyds share price down on the day The markets reacted unenthusiastically, marking Barclays down 4.5% on the day (at the time of writing). The contagion spread too, with the Lloyds share price pegged back 3.7%. Will there be a more positive reaction to Lloyds’ results next week? City analysts are expecting to see the Lloyds dividend reinstated this year, with some predicting a forward yield of better than 4%. And we’re looking at a price-to-asset value for Lloyds of only around 0.5 now. Those measures make me want to buy more. Yes, I see some serious risks ahead. But even accounting for them, I’m tempted by the Lloyds share price. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading I’m avoiding the Lloyds share price. I prefer this 5% dividend yield stock instead! Should I buy Lloyds Banking Group shares now? Lloyds share price: should I buy in February 2021? The Lloyds share price is falling again! Should I take advantage and buy? The Lloyds share price: 2 reasons I’m keen right now, but 2 big risks I’d note Alan Oscroft owns shares of Lloyds Banking Group. The Motley Fool UK has recommended Barclays and Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Lloyds share price is climbing in February. Should I top up my holding? appeared first on The Motley Fool UK.
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  7. Is the Lloyds (LLOY) share price a bargain or a value trap? (14/09/2021 - The Motley Fool UK)
    While the banking group Lloyds (LSE: LLOY) has an iconic brand and millions of customers, it trades as a penny stock. With the Lloyds share price languishing around 44p, is it a bargain or a value trap? The Lloyds share price: three bull arguments As the UK’s leading mortgage lender, Lloyds is set to benefit from continued buoyancy in the housing market. But even if prices cool, its mortgage book could continue to be a significant profit driver. As long as borrowers continue to repay their mortgages, fluctuations in house prices won’t necessarily harm the Lloyds business markedly. A second bull case for Lloyds right now is its dividend. It has restored the dividend it suspended last year. The interim dividend of 0.67p might not sound much. But typically Lloyds’ final dividend is double its interim payout. That suggests that the current Lloyds share price offers a prospective yield of around 4.3%. In fact I think the payouts could be higher. The bank effectively increased its capital reserves during the time its dividend was suspended and this could help fund dividend growth. Dividends are never guaranteed, though. Finally I like the relative simplicity of the Lloyds business, as far as any banking business is ever simple. The company focuses squarely on retail and commercial banking with UK front and centre. Financial institutions are always exposed to risk. But Lloyds’ limited international or investment banking exposure compared to its peers makes me feel its results could be more stable than some banks. Three bear arguments against the Lloyds share price Although I am bullish, the bank’s penny share status underlines that many investors are unconvinced about the merits of Lloyds. Although it has risen 66% in the past year, the Lloyds share price has been falling since its May peak. That could suggest that the share price got ahead of business performance in some investors’ opinion. It could continue to fall back. Secondly, the dividend is fairly meagre right now. A final dividend hasn’t been declared yet, and last year’s experience was a sharp reminder that dividends can suddenly dry up at short notice. For a yield-focussed investor, there are other FTSE 100 companies offering higher dividends than Lloyds. A third bear concern is whether the company’s move into becoming a landlord could turn out to be a costly diversion from its main business. That risks hurting the bank’s profits. Bargain or value trap? A value trap is a share that seems cheap but is actually poor value when its business prospects are properly understood. There are definitely risks in the Lloyds share price, as I outlined above. But I don’t see it as a value trap. With its large, profitable banking franchise, iconic set of brands, and continued strength in the UK lending market, I am bullish about the outlook for the financial services powerhouse. I see the current Lloyds share price as a bargain. I’d therefore consider topping up the Lloyds holding in my portfolio. The post Is the Lloyds (LLOY) share price a bargain or a value trap? appeared first on The Motley Fool UK. Inflation Is Coming: 3 Shares To Try And Hedge Against Rising Prices Make no mistake… inflation is coming. Some people are running scared, but there’s one thing we believe we should avoid doing at all costs when inflation hits… and that’s doing nothing. Money that just sits in the bank can often lose value each and every year. But to savvy savers and investors, where to consider putting their money is the million-dollar question. That’s why we’ve put together a brand-new special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation… …because no matter what the economy is doing, a savvy investor will want their money working for them, inflation or not! Best of all, we’re giving this report away completely FREE today! Simply click here, enter your email address, and we’ll send it to you right away. More reading Here’s what you need to know about the Lloyds share price I think Lloyds Bank is one of the best shares to buy now 3 reasons why the Lloyds share price could sink! As the Lloyds share price falls, I would buy The Lloyds Bank share price is up 60%. Would I buy it? Christopher Ruane owns shares in Lloyds Banking Group. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  8. If I’d invested £1,000 into Lloyds shares a year ago, here’s how much it’d be worth today (19/02/2021 - The Motley Fool UK)
    2020 was a choppy year in the financial markets. One of the stand-out events was the stock market crash in March. This saw the FTSE 100 fall below 5,000 points for the first time since 2010. Within the FTSE 100 index, Lloyds Banking Group (LSE: LLOY) also struggled. Lloyds shares fell substantially from the 63p mark it started 2020 at, suffering from the issues thrown up by the pandemic. If I’d made an investment of £1,000 a year ago, how would it look at the moment? An accurate picture? If I’d invested a year ago in the middle of February, I’d have picked up Lloyds shares around the 55p level. It’s currently trading at the 38p figure. This represents a 31% fall over 12 months, meaning my £1,000 would be worth £690.  Is this an accurate picture, though, given the stock market crash I mentioned happening in March? If I’d invested a month later, I’d be getting 32p a share. Now I’d be sitting on a gain of 19% instead. Ultimately, hindsight is a wonderful thing. This time last year, I didn’t know that a stock market crash of that severity was on the horizon. I can’t time the markets to perfection and always buy at the lowest price during any period.  In fact, I do feel the slide in Lloyds shares over the past year is an accurate representation of the share price. This is because if we pull back and look over the past five years (or longer) the trend has been down. So if I re-ran this experiment using a two-year or five-year horizon, I’d be holding onto a loss right now in the same way. Will Lloyds shares make back my losses? Personally, I think in the long-term that Lloyds shares will make it back to 55p, or even higher. The backdrop for the bank into 2021 is better than 2020. Impairments for bad loans can now be reduced. The forecasted economic growth later this year should aid profitability as credit card spending and corporates start to increase activity. But the drag of low interest rates and the continued high costs of the transformation to a more digital bank I think will hinder the recovery.  As such, if I was holding onto the £1,000 investment in Lloyds shares, I’d sit tight. But if I wasn’t invested, I think there’s much better opportunities out there. If I want to stick to the banking sector, I’d go for Barclays. I recently wrote a piece covering the fresh 2020 results from earlier this week. Barclays is a more diversified bank than Lloyds, shown by the impressive results from its investment banking arm. If I contrast the investment value of my £1,000, I’d be down 13% if I’d bought into Barclays instead of Lloyds. Still a loss, but a much smaller one! Barclays isn’t perfect either, and I could make a good argument that Lloyds is better positioned to benefit from a UK recovery. This is due to the growth being driven from the man on the street, a sector that Lloyds has the biggest hold on in the UK. Ultimately, Lloyds shares could be in for another choppy year, whatever direction that may be! One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading The Lloyds share price is climbing in February. Should I top up my holding? I’m avoiding the Lloyds share price. I prefer this 5% dividend yield stock instead! Should I buy Lloyds Banking Group shares now? Lloyds share price: should I buy in February 2021? The Lloyds share price is falling again! Should I take advantage and buy? jonathansmith1 has no position in any of the shares mentioned. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post If I’d invested £1,000 into Lloyds shares a year ago, here’s how much it’d be worth today appeared first on The Motley Fool UK.
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  9. The Lloyds share price: what do the latest results mean? (26/02/2021 - The Motley Fool UK)
    As a Lloyds Banking Group (LSE: LLOY) shareholder, dividends are all I’ve had to compensate me for a falling share price. Until last year, that is, when the banks suspended their dividends in the face of the Covid-19 pandemic. That certainly didn’t help the Lloyds share price, and it had crashed hard by the autumn. But this week’s results brought the news that I, and many others, had been hoping for. Lloyds has reinstated its dividend. None of the UK’s big banks actually came close to any liquidity crisis. And, speaking of its “strong capital position“, Lloyds revealed a 2020 dividend of 0.57p per share. With a yield of just 1.5% on the current Lloyds share price, that might seem miserly. But the bank explained that it is “the maximum allowed under the regulator’s guidelines“. In the short term, some might be disappointed that regulators are restricting the free market. But for the long term, it doesn’t really bother me too much. It would have been nice to know how much Lloyds would have paid had it enjoyed full freedom. But I do think the bank’s fundamentals will come through in the end, though there’s a big question over how long it might take. Liquidity is key What’s Lloyds’ liquidity like now? We’re looking at a CET1 ratio of 16.4% before dividends, and 16.2% after. Compared to the bank’s target of 12.5%, things look healthy on that score at least. What would I do now if I did not hold Lloyds shares? Coming to Lloyds afresh today, judging it as a potential new investment, I’m really not sure. I’m looking at a very different company to when I originally invested. When I bought, profits were strengthening and analysts predicted steady growth. And the Lloyds share price was on a modest price-to-earnings ratio. Today, I have far less idea what Lloyds’ long-term profit outlook will be like. Forecasts are not dependable at the best of times. But right now, with the long-term economic damage caused by the pandemic (oh, and by Brexit) far from known, I place little value on forecasts. Lloyds share price valuation In turn, valuations based on popular fundamentals don’t mean a lot to me now. When those fundamentals are so uncertain, any valuation calculations I can come up with are close to meaningless. So whatever Lloyds’ forecast P/E for 2021 might be (and I haven’t even worked it out), it would tell me pretty much nothing. So I can’t decide whether the Lloyds share price is a bargain. And then, my main reason for buying was the dividend. That had come back and I was looking forward to a long run of steady annual increases. Today, I’m still happy with Lloyds key liquidity ratios and I expect a better dividend to come. But I can’t even guess when. Current PRA guidance, which pegs back how much Lloyds should pay today, takes its risk-weighted assets into account. And the risk of assets turning bad over the course of the next year is a big unknown. I certainly don’t intend to sell at the current Lloyds share price. But I was waiting for these results to help me decide whether to buy more. I’m going to hold off. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading Stock market recovery: 3 UK shares to buy today The Lloyds share price: would I buy the stock today? The Lloyds share price spiked to 41p before falling today! Would I buy LLOY now? Lloyds Bank brings dividends back. Is it a good share for me to buy now? Shares to buy now: why I’d consider Lloyds Banking Group alongside this FTSE 100 stock Alan Oscroft owns shares of Lloyds Banking Group. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Lloyds share price: what do the latest results mean? appeared first on The Motley Fool UK.
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  10. The Lloyds share price is still rising: here’s why I’d buy now (30/05/2021 - The Motley Fool UK)
    When I last looked at Lloyds Banking Group (LSE: LLOY) in April, the Lloyds share price was about 44p. As I write today, it’s 11% higher, at 49p. Despite this continued growth, my view remains the same — I reckon this FTSE 100 stock could return to the 60p level seen at the start of last year. I like Lloyds’ traditional banking model and its big market share. Although banks have had a difficult time over the last decade, I think most of these problems are now in the past. In my view, Lloyds’ shares could be a decent investment today. Why Lloyds? When it comes to investing, I’m a big believer in keeping it simple. If I can’t understand how a business makes money and what might go wrong, then I don’t want to invest. This is one reason why I like Lloyds. Despite its giant size, I think it’s quite a simple business. There’s no investment banking or speculative trading at this bank. All Lloyds really does is lend money to real people (and businesses) and provide everyday banking services. This traditional approach to banking seems to work quite well. Although loan losses rose last year due to the impact of the pandemic, the bank still accumulated surplus capital on its balance sheet. This is the cash the bank is allowed to use to fund dividend payments. Lloyds’ costs are lower than most rivals, too. Wages and other operating costs accounted for 52% of Lloyds’ income during the first quarter. At Barclays, that figure was 61%, at NatWest it was 68%. All else being equal, that means less money is left over for shareholders. Not a sure thing Of course, banking is a cyclical industry. Although the Lloyds share price has risen pretty steadily since the start of this year, there’s no guarantee the bank’s progress will continue. Although the outlook for the UK economy appears to be fairly good at the moment, I think it’s still much too soon to be sure how things will turn out as the pandemic recedes. After an initial surge of pent-up activity, I wonder if we’ll see business activity slow down later this year. Unemployment might rise. One particular risk, in my view, is that interest rates might start to rise. If that happened, I expect house prices to fall sharply, after so many years of ultra low mortgage rates. As the UK’s largest mortgage lender, that would affect Lloyds. Lloyds share price: what I’d do There are no risk-free investments. But I think Lloyds is a fairly safe way to get exposure to the UK economy with an attractive dividend income. Broker forecasts suggest the bank will report an after-tax profit of £4.1bn this year and resume normal dividend payouts. These forecasts price the stock on 8.5 times forecast earnings, with a dividend yield of 3.8%. I think this valuation looks attractive and don’t see any red flags that might put me off. I’d be happy to buy Lloyds shares at current levels. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading I was right about the Lloyds share price. Here’s my outlook now The Lloyds share price is soaring. What should I do now? The Lloyds share price has doubled since September. Can it keep going? 5 reasons I think Lloyds share price can touch 60p The Lloyds share price is up 60% in a year! And I still think it’s good value Roland Head has no position in any of the shares mentioned. The Motley Fool UK has recommended Barclays and Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Lloyds share price is still rising: here’s why I’d buy now appeared first on The Motley Fool UK.
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  11. Where will the Lloyds share price go in June? (31/05/2021 - The Motley Fool UK)
    As a Lloyds Banking Group (LSE: LLOY) shareholder, it’s great to finally be able to say the shares have had a good year. Well, so far at least. The rise has carried on through May, pushing the Lloyds share price up 35% in 2021. Will the momentum keep on driving the shares up through June? Well, I’m not seriously going to try to predict where Lloyds will go next month. That’s for two reasons. One is that anything can happen in such a short timescale, and one-month movements are hard to distinguish from random. The other reason is that I’m lousy at the prediction game anyway. But do I see value in taking stock of what’s happened and thinking about the things that could affect the Lloyds share price through June and beyond. Lloyds share price weakness Lloyds shares are still down around 12% since mid-February 2020, just before the pandemic hit and the stock market crashed. Prior to that, Brexit uncertainty was giving Lloyds shareholders a hard time. We still face that, but are there any pandemic uncertainties left? In its Q1 update for March, Lloyds reported a £459m impairment release, due to the improving economic outlook. It still had a net impairment credit of £323m in the quarter, mind. But that means the impact of the pandemic crash on the bank’s bad debt situation hasn’t turned out as badly as feared. And further improvements over the rest of the year could see Lloyds freeing up more of the cash it’s set aside. That could give the Lloyds share price an extra lift, though boosting dividend prospects. The bank has already paid a 0.57p dividend, though that’s hardly the amount retirement dreams are built on. But it’s the maximum that the PRA will allow right now. So we’ll have to wait and see what dividend levels Lloyds will pay when free market conditions return.  The resumption of dividends At Q1 time, Lloyds said it was “accruing dividends with intention to resume progressive and sustainable ordinary dividend policy.” Once that’s back in place, I think we really can start to see things as back to normal. The next update on Lloyds’ future dividend policy should come with July’s first-half results. But without anything scheduled for June, I think its share price could drift sideways for a while. Still, June could be a very important month for Covid-19 progress. And any economic news could have an effect. Anyway, whatever happens to the Lloyds share price in June and over the next few months, it’s not too important to me. And I reckon there’s probably as much chance of short-term losses as gains. But I do think the positive progress the bank’s made in the first quarter could well set it up for a good year. And then we come back to the risks posed by Brexit. I’m holding, and I might even top up. The Motley Fool UK's Top Income Stock… We think that when a company’s CEO owns 12.1% of its stock, that’s usually a very good sign. But with this opportunity it could get even better. Still only 55 years old, he sees the chance for a new “Uber-style” technology. And this is not a tiny tech startup full of empty promises. This extraordinary company is already one of the largest in its industry. Last year, revenues hit a whopping £1.132 billion. The board recently announced a 10% dividend hike. And it has been a superb Motley Fool income pick for 9 years running! But even so, we believe there could still be huge upside ahead. Clearly, this company’s founder and CEO agrees. Learn how you can grab this ‘Top Income Stock’ Report now More reading The Lloyds share price is still rising: here’s why I’d buy now I was right about the Lloyds share price. Here’s my outlook now The Lloyds share price is soaring. What should I do now? The Lloyds share price has doubled since September. Can it keep going? 5 reasons I think Lloyds share price can touch 60p Alan Oscroft owns shares of Lloyds Banking Group. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Where will the Lloyds share price go in June? appeared first on The Motley Fool UK.
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  12. Could this dividend news boost Lloyds’ share price? (13/07/2021 - The Motley Fool UK)
    Lloyds Bank (LSE: LLOY) shares have had a good run recently. This year, Lloyds’ share price is up about 30%. Over 12 months, the FTSE 100 bank stock is up nearly 60%. Can Lloyds shares keep rising? I think it’s certainly possible. Today, there has been some big news on the dividend front. And I’m not convinced this news is fully priced into the stock at present. Lloyds shares: dividend ban lifted The news I’m referring to is in relation to the Bank of England’s (BoE) ban on UK bank dividends. Early last year, the BoE banned UK banks such as Lloyds from paying out dividends to shareholders. The aim was to ensure UK banks had enough capital on hand to support the economy during the coronavirus pandemic (the worst economic conditions in 300 years). In December, the BoE eased the ban slightly, which allowed Lloyds to pay a very small dividend (0.57p per share) for 2020. However, this morning, the regulator completely removed the dividend ban, saying its stress test had shown the banking sector is well-placed to cope with the impact of Covid-19 on the economy. Big dividends on the way? This development is great news for Lloyds’ shareholders. This year, City analysts expect the UK bank to pay out dividends of 2.08p per share. At Lloyds current share price of 47.6p, that payout equates to a prospective yield of 4.4%. That’s very attractive in the current low-interest-rate environment. Share price boost Indeed, it’s so attractive that I think it could increase demand for Lloyds shares from both private investors (ie retirees seeking income) and institutions such as pension funds. This could potentially push Lloyds’ share price up further. It’s worth noting that immediately after the BoE dividend news, analysts at Jefferies raised their price target for Lloyds shares from 55p to 57p. That’s about 20% above the current share price. When you consider that Lloyds shares currently have a forward-looking price-to-earnings (P/E) of less than eight and offer a prospective yield of around 4.4%, they certainly look attractive from a value-investing point of view. Risks to consider Of course, there are plenty of risks to consider with Lloyds shares. One is that the actual dividend for 2021 could be very different from the dividend forecast. The figure of 2.08p per share I mentioned above is simply the average analyst estimate. At times, these consensus forecast figures can be way off the mark. At this stage, we really don’t know what kind of dividend Lloyds will pay for 2021. Earlier this year, the bank said it would update the market on interim dividend payments with its half-year results. Another risk to consider is there could be further Covid-19 setbacks for the UK economy. This could impact Lloyds’ profitability and share price. It’s worth noting that the UK economy grew more slowly than expected in May. Overall however, I think the outlook for Lloyds’ share price is attractive. I wouldn’t be surprised if its shares rise further in the second half of the year, and beyond. The post Could this dividend news boost Lloyds’ share price? appeared first on The Motley Fool UK. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading 2 penny stocks to buy in July Can the Lloyds share price recover again? Should I buy Lloyds shares to add to my portfolio today? The Lloyds share price: 1 reason to buy and 1 reason to sell The Lloyds share price continues to slide. Should I buy now? Edward Sheldon owns shares of Lloyds Banking Group. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  13. The Lloyds share price is up again. Should I buy some more? (29/04/2021 - The Motley Fool UK)
    Lloyds Banking Group (LSE: LLOY) had a good day Wednesday, after a first-quarter update. The Lloyds share price ended the day 3.5% ahead. And that kind of bullish feeling has been rare for Lloyds shareholders in recent years. I still have a way to go before I get my loss down to 50% since I bought my Lloyds shares, mind. Lloyds shares are up 36% over the past 12 months, more than twice the gain of the FTSE 100 over the same period. But that does exclude the first couple of months of the stock market crash. If we look back to just before Covid-19 hit the markets, The Lloyds share price is still down 31%. What did the Q1 update hold? My Motley Fool colleague Paul Summers covered the key facts and figures on the day. Here, I want to examine a few key points that I see as particularly important as an investor, both positive and negative. Firstly, it’s good to see opening quarter pre-tax profit reaching £1.9bn. But I won’t get too excited by the size of the jump over the same period last year, given what was happening back then. To me, it’s more at the ‘I didn’t break my leg again today’ level of good news. Saying that, it did beat market expectations, and Lloyds achieving that hasn’t been too common an occurrence. If Lloyds can maintain this kind of profit, we could see a return to 2017 and 2018 strength. Not in the clear yet But I need a lot more than a single positive quarter to convince me that the Lloyds share price is set enter a period of strength. I’m not going to forget, for example, that profit took a dip in 2019, before the pandemic took hold. Also, the bumper quarter was helped by a big improvement in Lloyds’ bad debt provisions. With the economic outlook brightening, the bank enjoyed a net impairment credit of £323m. An assumption that fewer people are going to fail to repay their debts is down to a change in short-term external conditions. It doesn’t really speak of any long-term improvements in the bank itself. Still, I invested in Lloyds for the dividends, and I’m seeing encouraging developments on that front. The bank is still held back by PRA restrictions, and I can see Lloyds share price weakness continuing while they’re in force. But the bank said it’s “accruing dividends with intention to resume progressive and sustainable ordinary dividend policy.” Lloyds share price finally recovering? There were no dividend numbers, which was a little disappointing. And it raises the risk that Lloyds related ambitions might not match investors’ hopes. Forecasts suggest 1.68p per share for the current year, for a 3.7% yield on the current Lloyds shares price. There’s better out there, but that’s not bad. And, hopefully, it’ll be a precursor for sustained progressive dividends. So what’s my overall feel on the Lloyds share price now? Well, once again, I’m looking at a hammered banking sector on the verge of what I’m hoping is, finally, a sustainable recovery. I’m not selling now, and I’d probably buy if I wasn’t already a shareholder. But I don’t think we’re out of the woods yet. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading The Lloyds share price is headed back to 50p. Would I buy it? The Lloyds share price is flying! Should I buy LLOY today? I’d ignore the Lloyds share price and buy other UK shares in an ISA Lloyds share price vs HSBC share price: which bank stock would I buy? Is the Lloyds share price undervalued? Alan Oscroft owns shares of Lloyds Banking Group. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Lloyds share price is up again. Should I buy some more? appeared first on The Motley Fool UK.
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  14. 3 UK shares I’d buy over Lloyds Banking Group today (20/05/2021 - The Motley Fool UK)
    Lloyds shares are very popular within the UK investment community. Every week, LLOY is one of the most traded stocks. I’m cautiously optimistic on the outlook for its shares. In the near term, I think the bank’s share price may continue to rise due to the fact that the UK economy is in recovery mode.  That said, there are plenty of stocks I’d buy over Lloyds today. Here’s a look at three UK shares I believe will outperform Lloyds over the long run. Rightmove One FTSE 100 stock I’d buy over Lloyds today is Rightmove (LSE: RMV). It’s the owner of the most popular property website in the UK, rightmove.co.uk. I see Rightmove as a better long-term investment for a few reasons. Firstly, it has a strong competitive advantage. In the property website space, it’s the clear market leader. In banking, Lloyds is just one of many major banks. Secondly, RMV is extremely profitable. Last year, RMV generated a return on equity (ROE) of 133%. Lloyds, by contrast, had a ROE of 4%. On the downside, Rightmove is more expensive. Currently, its forward-looking P/E ratio is about 28, versus 8.3 for Lloyds. That valuation doesn’t leave a huge margin of safety. I think this higher valuation is fair though. RMV is a high-quality company with a great track record when it comes to generating shareholder wealth. London Stock Exchange Another stock I’d buy over Lloyds today is London Stock Exchange Group (LSE: LSEG). It’s a leading global financial markets infrastructure and data company. Essentially, it owns the plumbing of the UK financial system. One thing I like about LSEG is that it’s now a major player in the financial data space after its acquisition of Refinitiv. It provides data and technology that enables customers to execute critical investing and trading decisions. Currently, it has over 40,000 customers across 190 countries. In the years ahead, the demand for financial data is likely to grow. So, London Stock Exchange is well-positioned for long-term growth, in my view. There are risks here, of course. One is that the stock has a relatively high P/E ratio of 27. If growth is disappointing, the stock could underperform. However, overall, I think LSEG has more potential for long-term growth than Lloyds, due to the fact that demand for data is rising. Clipper Logistics Finally, Clipper Logistics (LSE: CLG) is another stock I’d buy over Lloyds today. This small logistics company that supports retailers has gone from strength to strength in recent years on the back of the e-commerce boom. Between FY2015 and FY2020, its revenues increased every single year by an average of 16%. So it’s been a much more consistent performer than Lloyds, which has seen its revenues fluctuate. For the year ended 30 April, analysts expect revenue growth of 31%. Looking ahead, I expect CLG to keep growing. The beauty of this company is that it’s poised to benefit from both increased economic activity in the UK this year and long-term trends such as the shift to online shopping. This stock has a market capitalisation of just £700m (versus £34bn for Lloyds) so given its size, it could be quite volatile. It’s not going to be suitable for all investors. But I think it has a lot of long-term growth potential. For this reason, I’d buy it over Lloyds. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading 3 UK shares to buy today The Boohoo share price is up 627% in 5 years! Will history repeat? UK shares to buy today: 2 FTSE 100 stocks I’d acquire right now Edward Sheldon owns shares in Lloyds Banking Group, Rightmove, Clipper Logistics, and London Stock Exchange. The Motley Fool UK has recommended Clipper Logistics, Lloyds Banking Group, and Rightmove. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post 3 UK shares I’d buy over Lloyds Banking Group today appeared first on The Motley Fool UK.
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  15. The Barclays share price gains 25% in 2021, with Lloyds at 35%. Which is better now? (08/06/2021 - The Motley Fool UK)
    The Barclays (LSE: BARC) share price has stormed up 25% so far in 2021, way above the FTSE 100 average. But Barclays has still lagged Lloyds Banking Group (LSE: LLOY) mind, up 35% year-to-date. I’ve been bullish about the banking sector for some time, but what does this tell me? Should I add some Barclays shares to my portfolio, or top up on my Lloyds holding? Well, such a short-term price performance difference doesn’t say a lot on its own. But looking back a bit further, I’m seeing an interesting picture. Over the past 12 months, they’re both up 40% (from early in the crash). But the Barclays share price has gained 24% over two years, though only 10% over five years (with the longer timespan including the early aftermath of the Brexit vote). The Lloyd share price meanwhile, has lost 14% over two years and is down 26% over the half-decade. Barclays has clearly been the best investment over a five-year timescale. But why, and what does that say now? I think it’s telling me to examine the two banks’ responses to the financial crisis and the Brexit result. Lloyds has withdrawn from the risky world of international investment banking. That’s where the foundations of the world banking systems started to crack in the first decade of this century. And Lloyds has gone further, withdrawing entirely into the UK domestic banking business. A bolder strategy But that’s not what Barclays has done. It’s acted more boldly every step of the way. And, judging by the Barclays share price, investors see more potential in that approach. From right back in the depths of the banking crash, Barclays found its own ways to recapitalise and get its balance sheet back into some semblance of health. There’s been some investigative fallout in the way that happened, but it hasn’t harmed shareholders. Barclays also responded differently to the banking crunch. Rather than shunning the investment banking business, it climbed right back on the horse. I’d say there’s bigger risk there, but potentially greater opportunity. And it’s surely safer now that worldwide banking regulations have been tightened and balance sheets can no longer become so overstretched, isn’t it? Well, I wouldn’t put it past the banking industry to find new ways to create catastrophe. But there are at least some safeguards now. A more volatile Barclays share price? So, two different approaches, but which do I think is best? Barclays is being bolder, sticking with the potentially more profitable parts of the banking business. Lloyds, meanwhile, has gone all out for safety. I can certainly see merits in both strategies. Over the next five years, I could see the Barclays share price being more volatile. And I can picture the Lloyds share price being a bit more plodding, attracting dividend investors rather than those who seek growth and sector dominance. So, which is really better? It depends on an individual investor’s priorities. But, for me, now in my sixties and more focused on income and lower risk these days, I’m sticking with Lloyds. 5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times. Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down… You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm. That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! More reading Lloyds share price: here’s my outlook for the rest of the year The Lloyds Bank share price has touched 50p. Here’s what I’d do now Where will the Lloyds share price go in June? The Lloyds share price is still rising: here’s why I’d buy now I was right about the Lloyds share price. Here’s my outlook now Alan Oscroft owns shares of Lloyds Banking Group. The Motley Fool UK has recommended Barclays and Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Barclays share price gains 25% in 2021, with Lloyds at 35%. Which is better now? appeared first on The Motley Fool UK.
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  16. Should I buy Lloyds Banking Group stock? (27/06/2021 - The Motley Fool UK)
    After coronavirus hit the markets, Lloyds Banking Group (LSE: LLOY) bottomed out below 25p in September 2020. Today’s price of around 47p shows just how far the stock has travelled with its rebound since then. But it’s been higher. At the end of May, it was just above 50p. And in 2019, before the pandemic, the shares spent a fair amount of time above 60p. Rebounding earnings It’s clear what drove the move up this year. Earnings plunged by almost 70% in 2020. But city analysts have pencilled in a rebound of more than 380% in 2021. And I think earnings tend to drive share prices more than any other factor. Sometimes those earnings are actual and sometimes anticipated. Before Covid-19 arrived, Lloyds stock had been travelling essentially sideways for around six years. There had been ups and downs along the way, but the trading range was clear. And the price never seemed to be able to break through a cap of around 90p. However, during that period, the business was improving and earnings were generally rising year after year. There’s only one explanation for the price action. Instead of the stock moving higher to accommodate rising earnings, the valuation contracted instead. And that’s why Lloyds ended up looking so cheap. Indeed, prior to the pandemic, Lloyds had a low price-to-earnings ratio, the price to asset value was below one and the dividend yield was high. Clever stock market, I say. And when I say stock market, I mean the many individual investors who make up the market for stocks. The challenges of cyclicality Why so clever? Because the market ‘knew’ the next move for Lloyds’ earnings and the stock price would likely be down. Nobody knew about Covid-19, of course, but many people knew that cyclical stocks have accentuated downside risks after the underlying business has enjoyed a long period of high earnings. For that reason, Lloyds will never make a decent long-term hold for me. However, the stock can be lucrative as a vehicle for capturing a shorter-term move up. For example, the share shot higher between March and September 2009 after the financial crisis and credit crunch. And I think we’ve been seeing a similar fast recovery following the pandemic. But, for me, the danger now is that we could see a further prolonged period of sideways stock action followed by another plunge in earnings in the end. Analysts have recently revised their expectations lower and pencilled in a slight decline in earnings for 2022. Meanwhile, if the business meets estimates for 2021, profits are already in the ballpark of pre-pandemic levels. So I’m cautious about Lloyds now, despite the low valuation and the high dividend yield. Of course, I could be wrong. Earnings could take off in the years ahead. And at the end of the last century, the valuation was much higher. That situation could happen again, driving the stock price way beyond the previous six-year range. But I’m seeing limited potential now, so I’d look for stock opportunities elsewhere. The post Should I buy Lloyds Banking Group stock? appeared first on The Motley Fool UK. Our 5 Top Shares for the New “Green Industrial Revolution" It was released in November 2020, and make no mistake: It’s happening. The UK Government’s 10-point plan for a new “Green Industrial Revolution.” PriceWaterhouse Coopers believes this trend will cost £400billion… …That’s just here in Britain over the next 10 years. Worldwide, the Green Industrial Revolution could be worth TRILLIONS. It’s why I’m urging all investors to read this special presentation carefully, and learn how you can uncover the 5 companies that we believe are poised to profit from this gargantuan trend ahead! Access this special "Green Industrial Revolution" presentation now More reading Should I buy FTSE 100 shares Lloyds, Tesco, or Glaxo in July? Could the Lloyds share price have a breakthrough now? 3 shares to invest in with £3,000 Should I buy Lloyds shares today at 47p? 3 reasons why I think the Lloyds share price could rise Kevin Godbold has no position in any of the shares mentioned. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  17. 2 British shares to buy now (09/09/2021 - The Motley Fool UK)
    With a flurry of takeover bids for British companies in recent weeks, some professional investors obviously think UK shares are undervalued. I have a list of shares to buy now that I think offer good value at current prices. Here are two of the names on it. Retail success story: B&M Shares in retailer B&M (LSE: BME) received a boost this week when the company upgraded its profit forecast. Over the past year, the B&M share price has increased 27%. But I think there could be further potential upside. Some investors have worried that last year’s sales surge at the company was just down to the pandemic. B&M’s UK stores stayed open during lockdowns. But I think the company’s strong results during lockdowns actually enhanced the investment case. To me, they showcased the retailing expertise of B&M’s management. From spotting items that shoppers love to striking a good deal on pricing, B&M is a high street force to be contended with. That has translated into handsome returns for shareholders. As well as the share price increase, each share paid out 17.3p of ordinary dividends last year. On top of that, the profits bonanza led to 45p of special dividends per share. Dividends are never guaranteed, though. B&M’s highly competitive market remains a risk to profit margins. I see possible upside here because the company should be able to keep expanding as it adds new sites. That could allow its proven retail formula to be used, and could also bring economies of scale. Both of those things could help increase profits. Shares to buy now: Lloyds Another company I would consider adding to my portfolio is banking giant Lloyds (LSE: LLOY). Why do I rate these among shares to buy now? I see Lloyds as a simple proxy for British banking. Without the investment banking operations of Barclays or the international exposure of rivals such as Standard Chartered and HSBC, Lloyds’s clear focus on UK retail and business banking makes its operations a bit easier to understand. As the leading mortgage lender in the UK, continued buoyancy in the UK housing market should help sustain profits. There is a risk that a housing market downturn causing loan defaults could hurt profits. The company has restored its dividend. With a progressive dividend policy, I am hoping the payout increases, although as we saw last year a sudden change in market circumstances can lead to dividend suspension. I don’t see a very exciting growth story at Lloyds, and wonder if its move into owning rental accommodation could turn out to hurt not boost profits down the line. I see shares moving down 9% in the past month as a buying opportunity. They still stand 60% higher than a year ago. Lloyds features among my shares to buy now as I like its sizeable, focussed banking operation. I expect demand for banking services like mortgages to continue for years to come. The post 2 British shares to buy now appeared first on The Motley Fool UK. Inflation Is Coming: 3 Shares To Try And Hedge Against Rising Prices Make no mistake… inflation is coming. Some people are running scared, but there’s one thing we believe we should avoid doing at all costs when inflation hits… and that’s doing nothing. Money that just sits in the bank can often lose value each and every year. But to savvy savers and investors, where to consider putting their money is the million-dollar question. That’s why we’ve put together a brand-new special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation… …because no matter what the economy is doing, a savvy investor will want their money working for them, inflation or not! Best of all, we’re giving this report away completely FREE today! Simply click here, enter your email address, and we’ll send it to you right away. More reading The Lloyds share price drops 15% since June. Time to buy? Why are Lloyds shares losing momentum? Is the Lloyds share price destined for disaster? 3 of the best FTSE 100 index shares to buy right now What’s next for the Lloyds share price? Christopher Ruane owns shares in Lloyds Banking Group and Standard Chartered. The Motley Fool UK has recommended B&M European Value, Barclays, HSBC Holdings, Lloyds Banking Group, and Standard Chartered. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  18. Lloyds share price: here’s what I’m doing about it (09/04/2021 - The Motley Fool UK)
    I bought shares in Lloyds Banking Group (LSE: LLOY) in April 2020. That was after the FTSE 100 looked liked it was coming out of the bottom of the crash. But, the Lloyds share price still had further to fall. I bought again in November 2020 when a recovery in the price looked to be underway. At the current share price of around 43p, my position in Lloyds is now slightly in the green. I am not jumping for joy just yet. Lloyds, like other banks, was forced by regulators to cut its 2019 and 2020 dividend. I bought Lloyds because I was banking on it one day returning to paying chunky dividends. Lloyds bank dividend Lloyds has declared a 0.57p per share dividend, the maximum permitted by regulators, for 2020. That means the dividend yield on Lloyds stock is around 1.33%, which is not impressive. But, I think one day Lloyds could get back to pre-Covid-19 payouts to shareholders. My shares could be yielding over 6% if that happens. The UK has a clear roadmap out of lockdown, and the coronavirus vaccination programme is on track. The outlook for the UK economy looks better now than it has done for a long time. Bank stocks like Lloyds tend to do well when the economy is roaring. If the UK is poised on the cusp of an economic boom, then Lloyds should be able to start to increase its dividend. The analyst consensus is for 1.7p in 2021 and 2.3p in 2022. Of course, analysts’ forecasts can change. Lloyds share price If Lloyds starts paying out dividends again, then shouldn’t the share price start to rise as well? Yes, it probably would. But I think there is a cap on how high it can go. For one thing, as a share price increases, the dividend yield starts to fall, making it less attractive. Looking at a chart of the Lloyds bank share price from 2008 (the great financial crash) onwards and it appears to move between 21p and 88p. Dividend investors could have been moving in and out of the stock when its dividend yield gets too high and too low. If so, one way to break out of the range would be to increase dividends in the future substantially. But, I think there is a limit to how much earnings Lloyds can generate and pay out as dividends. Since 2008, regulations have tightened, limiting the risk but also the profits banks can generate. Challenger banks have also emerged to compete with Lloyds’ core business in UK retail and commercial banking. Lloyds has an insurance and wealth management business, but these are small. They would have to grow substantially to drive earnings higher in the long term. Right now, a return to pre-Covid-19 performance is what I have in mind. But, Lloyds still faces headwinds today. Although 2020 loan losses were not as bad as expected, many could still turn sour. There is a pension deficit to correct, a looming restructuring charge for 2021, and cost-cutting has not been delivering as expected.  I am happy holding my Lloyds shares because the potential of a 4%, 5%, or maybe 6% dividend yield in the future makes the risks of holding them worthwhile – assuming, of course, Lloyds gets back to pre-Covid-19 performance. At higher share prices, the potential dividend yield rewards start looking less enticing, given the risk level. 5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times. Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down… You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm. That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! More reading Here’s what I’d do about Lloyds Banking Group stock right now The Lloyds share price is back above 40p! I think this is just the start UK shares to buy now: here’s what I’d do with a £500 investment These FTSE 100 shares are rising. Here what I’d do Buying the Lloyds Bank share? Here are 3 metrics I’d consider first James J. McCombie owns shares of Lloyds Banking Group. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Lloyds share price: here’s what I’m doing about it appeared first on The Motley Fool UK.
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  19. Should I buy Lloyds shares today? (14/06/2021 - The Motley Fool UK)
    Lloyds (LSE: LLOY) shares have had a great run recently. Year to date, the Lloyds share price is up 33%. Over 12 months, the stock is up 51%. I already own some Lloyds shares so I’m pleased that the share price is rising. Should I buy more though? Let’s examine the outlook for Lloyds shares from here. Lloyds share price: I see further upside The short-term set-up for Lloyds shares is quite attractive, in my view. For starters, the UK economy looks set for strong growth this year. Last month, the Bank of England raised its forecast for British economic growth to 7.25% for 2021, up from February’s estimate of 5%. This growth should provide a nice backdrop for Lloyds – its fortunes are closely linked to the health of the UK economy. Secondly, analysts are upgrading their earnings forecasts for the stock. Over the last three months, the consensus earnings per share estimate for 2021 has risen from around 4.1p to 5.9p. Analysts are also raising their price targets for Lloyds. Last week, both Barclays and JP Morgan lifted their targets. Barclays went from 55p to 60p while JP Morgan went from 54p to 59p. This kind of upgrade activity can boost a stock’s share price. Third, the stock’s valuation is still very low. The current FY21 earnings forecast of 5.9p equates to a forward-looking price-to-earnings (P/E) ratio of just 8.2 at the current share price. By contrast, the median forward-looking P/E across the FTSE 100 is 16.7. Finally, Lloyds has said that it intends to resume a “progressive and sustainable ordinary dividend policy” in the near future. Regular dividends could increase the appeal of owning the shares, and push its share price up further. Putting this together, I see plenty of appeal in Lloyds shares right now. Long-term uncertainty I do still have concerns about the long-term investment case for Lloyds shares, however. My biggest concern is that I think the banking industry is going to see a significant amount of disruption over the next decade due to advances in financial technology (FinTech). Today, FinTech companies such as PayPal, Square, Wise, Revolut, and SoFi are rapidly capturing market share. I suspect that in 10 years’ time, the banking industry will look very different. This adds uncertainty to the investment case. My second concern is that UK interest rates could remain low for years. This could hinder Lloyds’ profitability and put a brake on the rising share price due to the fact that banks are able to generate larger profits when interest rates are higher. We may see UK interest rates rise as the economy continues to recover in the years ahead. However, I think it will be a long time before rates are back at pre-Global Financial Crisis levels of 5%+. Should I buy Lloyds shares now? Weighing everything up, I’m not going to buy more Lloyds shares for my portfolio for now. I will continue to hold the shares I have because I think the price has further to climb. However, I will be investing new capital in other stocks that have more growth potential in the long run. The post Should I buy Lloyds shares today? appeared first on The Motley Fool UK. Like this one… FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Should I buy Lloyds shares? The Lloyds share price is up 50%. I’d still buy. The Barclays share price gains 25% in 2021, with Lloyds at 35%. Which is better now? Lloyds share price: here’s my outlook for the rest of the year The Lloyds Bank share price has touched 50p. Here’s what I’d do now Edward Sheldon owns shares in Lloyds Banking Group and PayPal. The Motley Fool UK owns shares of and has recommended PayPal Holdings and Square. The Motley Fool UK has recommended Barclays and Lloyds Banking Group and recommends the following options: long January 2022 $75 calls on PayPal Holdings. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  20. The Lloyds share price is falling in June. Here’s why I’d buy more (19/06/2021 - The Motley Fool UK)
    As a Lloyds Banking Group (LSE: LLOY) shareholder, it was nice to see the shares peeking back above the 50p level this year. But since the start of June, the Lloyds share price has fallen back and stands at 47p as I write. Will it ever break through 50p and stay there? And do I actually care? Well, in the long term, I certainly do care. But while I’m still in a net investing phase, I’m happy for the share price to remain low. I bought my Lloyds shares primarily for dividends, and that is more important to me right now. For 2020, the 0.57p per share the bank paid resulted in a yield of only around 1.6%. But that is not representative of any underlying performance. No, it was the maximum possible under current PRA restrictions. Lloyds share price valuation So I don’t have any way to calculate my likely future dividend yields right now. But what’s the Lloyds share price valuation looking like? Forecasts for the current year have been creeping upwards. Analysts currently put their earnings per share estimates for 2021 at around 5.9p. On a share price of 47p, that’s a price-to-earnings multiple of just eight. The FTSE 100’s long-term average P/E stands at around 14, so on that score Lloyds looks cheap. So why have the shares fallen back? I suspect part of it is down to some profit taking. Investors who bought around the start of the year would have been nearly 40% up by the end of May. It must be tempting to transfer a bit of that gain into whatever stock might be set for the next recovery. But I think there’s a wider drag on the Lloyds share price, and that’s the UK economy. Tied to the UK economy We’ve all seen the news headlines proclaiming the strongest economic outlook since before the pandemic. And inflation has blipped up a bit too. But at the depths we’re restarting from now, we’re still a long way from the economy looking actually strong in any real sense. Then there’s the housing market. Strong demand has made it look buoyant since the easing of lockdown, but again it’s still way too early tell where the next few years will go. Lloyds is a purely UK-focused bank these days. Those two things, the economy in general and the housing market, will be key to its performance. And while those are both so uncertain, I can see the Lloyds share price remaining weak. There really is no international buffer against domestic ups and downs any more. Dividend prospects But to me Lloyds is looking good, with a strong balance sheet and healthy liquidity. I reckon it could withstand an economic downturn even if we have one, and still be able to pay decent dividends. I don’t think we will have one, mind. And at the current Lloyds share price, it’s very much a top-up candidate for me. The post The Lloyds share price is falling in June. Here’s why I’d buy more appeared first on The Motley Fool UK. 5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times. Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down… You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm. That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! More reading 3 UK penny stocks I’d buy for my ISA 2 UK shares to buy now with £2,000 Here’s why I’m not buying Lloyds shares Should I buy Lloyds shares today? Should I buy Lloyds shares? Alan Oscroft owns shares of Lloyds Banking Group. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  21. The Lloyds share price: 3 things that could give it a boost (28/06/2021 - The Motley Fool UK)
    Lloyds Banking Group (LSE: LLOY) has shied back from the 50p level. What might push it back up there to stay? Other than general economic strengthening, and that old investors’ favourite, time, here are three things that I think should help the Lloyds share price. First is the resumption of dividends. Dividends have kept me bullish on Lloyds during the last few years, but then they shrank. We received 0.57p per share for 2020, which is not the stuff of which happy retirements are made. It’s all down to the pandemic, and does not represent Lloyds’ long-term dividend prospects. But it does create uncertainty. As a private investor, I can sit back with my confidence that the dividend will resume. But an actual, say, 5% dividend is a very different thing to a possible future 5% dividend, maybe next year, or perhaps the year after. That can make a huge difference for institutional investors, for whom the current year’s performance is all that matters. No, make that the current quarter. And institutional investors decide where the Lloyds share price goes, not small investors like us. Free market That brings me to the wider issue of Covid-19 restrictions in general. And I don’t just mean pubs, football stadiums, and holidays. Sure, anything that gets us closer to a fully functioning economy should help. After all, it does means businesses needing loans, home-buyers needing mortgages, and all that. But I’m thinking of PRA rules currently holding back what the banks can do. And it’s not just the hard fact of the dividend restriction. No, those who champion free markets don’t like it when regulators stick their oar in and start telling private companies what they can and can’t do with their own money. I’m not going to champion the financial prudence of the banking sector. No, not after the financial crash. So I won’t knock the PRA for stepping in and saying “Come on folks, let’s have a bit of caution please.” But it is still interference in the market, which some investors do not like. And until we’re properly back to a free market and see the results, I reckon the Lloyds share price will still be held back. Show me the cash That brings me to my third thing, Lloyds’ first-half results, due on 29 July. We’ll know by then whether the planned final relaxation of Covid restrictions on 19 July actually happened, for one thing. Q1 figures looked decent, and Lloyds upgraded its full-year guidance as a result. At the time, the bank said it expects operating costs to drop to around £7.5bn. Lloyds also reckoned its risk-weighted assets should be “broadly stable on 2020,” which reduces uncertainty. The predicted return on tangible equity of 8%-10% looks healthy enough. Lloyds share price boost? The key thing for me, as an income investor, was Lloyds’s statement that it is “accruing dividends with intention to resume progressive and sustainable ordinary dividend policy.” If we get any positive updates on these measures, I could see the Lloyds share price getting a boost. The post The Lloyds share price: 3 things that could give it a boost appeared first on The Motley Fool UK. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading 2 penny stocks to buy in July Is the Lloyds share price cheap? Should I buy Lloyds Banking Group stock? Should I buy FTSE 100 shares Lloyds, Tesco, or Glaxo in July? Could the Lloyds share price have a breakthrough now? Alan Oscroft owns shares of Lloyds Banking Group. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  22. The Lloyds share price is up 96% since October. Would I buy today? (21/06/2021 - The Motley Fool UK)
    So far, 2021 has been a good year for Lloyds Banking Group (LSE: LLOY) shareholders. Lloyds shares ended 2020 at 36.44p. As I write, this FTSE 100 stock trades around 46.97p. That’s a gain of 10.53p, for a year-to-date rise of almost three-tenths (28.9%). However, the Lloyds share price has been very volatile over the past 12 months, so where might it go next? The Lloyds share price zig-zags The Lloyds share price has seen pretty steep and sharp moves over 2020/21. Nine months ago, on 22 September 2020, the shares slumped to a 52-week intra-day low of 23.58p. This followed news that the UK would enter another lockdown, this time over winter. Obviously, these restrictions were bad news for the UK’s largest consumer lender and its customers. But then came ‘Vaccine Monday’ (9 November 2020), with good news of several effective vaccines against Covid-19. After this welcome shot in the arm, the Lloyds share price took off like a rocket. By the end of 2020, it was 12.86p higher — more than half (+54.5%) above its 2020 low. However, by 29 January 2021, it slipped to close at 33p. To me, this looked like a bargain price to buy into a Big Five bank. This proved to be so, as the shares soared to hit an intra-day high of 50.56p on 1 June. That’s a gain of 17.56p and an uplift of more than a third (+34.7%) in four months. However, as worries about inflation recently unnerved markets, LLOY has fallen back to below 47p today. What next for LLOY? Today, the Lloyds share price stands 7.6% below its 52-week high set three weeks ago. At this level, I still see value in this £33bn bank. After all, the group should benefit from the UK economy fully opening up a month from now. Also, in spite of Covid-19, the UK economy is growing, which is good news for cyclical companies. Furthermore, Lloyds’ balance sheet is strengthening, plus its shares trade at a deep discount to their underlying net asset value (NAV). In addition, after suspending its dividend in 2020, Lloyds has reinstated it, albeit at a much lower level. So far, the only cash dividend paid to shareholders was 0.57p a share on 25 May. Of course, the growth of this dividend will be a key driver of the future Lloyds share price (the faster, the better). But I suspect it won’t be plain sailing from here for LLOY and its long-suffering shareholders. That’s because share prices don’t rise in straight lines, just as trees don’t grow straight to the sky. The world walks a tightrope For me, a multi-year economic boom would be great news for the Lloyds share price. But this widely anticipated event may not materialise quite as planned. Already, we’ve seen multiple variants of Covid-19, with some deadlier and more transmissible than the original virus. If new coronavirus infections outweigh global vaccination efforts, then the world could be plunged into a third wave and further lockdowns. Obviously, this would be grim news for us all. I don’t own this FTSE 100 share at present. However, on balance, I’d be a buyer with the Lloyds share price below 47p. Indeed, with a following wind, I expect it to hit 60p in 2021/22, as do several of my colleagues. Hence, I’d willingly buy LLOY today for rising dividend income and future capital gains. The post The Lloyds share price is up 96% since October. Would I buy today? appeared first on The Motley Fool UK. Our 5 Top Shares for the New “Green Industrial Revolution" It was released in November 2020, and make no mistake: It’s happening. The UK Government’s 10-point plan for a new “Green Industrial Revolution.” PriceWaterhouse Coopers believes this trend will cost £400billion… …That’s just here in Britain over the next 10 years. Worldwide, the Green Industrial Revolution could be worth TRILLIONS. It’s why I’m urging all investors to read this special presentation carefully, and learn how you can uncover the 5 companies that we believe are poised to profit from this gargantuan trend ahead! Access this special "Green Industrial Revolution" presentation now More reading My 3 favourite UK shares to buy now Why is the Lloyds share price falling? The Lloyds share price is falling in June. Here’s why I’d buy more 3 UK penny stocks I’d buy for my ISA 2 UK shares to buy now with £2,000 Cliffdarcy does not own shares in Lloyds Banking Group. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services, such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool, we believe that considering a diverse range of insights makes us better investors.
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  23. As the Lloyds share price falls, I would buy (10/09/2021 - The Motley Fool UK)
    Over the past year, shares in Lloyds (LSE: LLOY) have moved up by 63%. That is a return of almost two thirds in just 12 months – an appealing performance for me. But recently the upwards trajectory has stalled. In the past month, for example, the Lloyds share price has fallen 7%. As the share price falls, I see a buying opportunity for my portfolio. Here are three reasons why. Lloyds: a banking powerhouse Banking is an industry I assume is here to stay. There may well be significant changes, some driven by external forces like fintechs, and some by internal ones, such as a desire to cut costs by shifting to a digital banking model. But imagine the world a decade or two from now. In my view, whatever else may change, people are still going to need to save money, withdraw money, buy homes, get loans, take out mortgages and tuck funds away in investment vehicles. Lloyds is one of the biggest players in the UK banking sector. Now, being a big name in a durable sector doesn’t guarantee survival as an independent company. Consider Morrisons, for example. It is one of the leading names in the resilient supermarket sector, but is currently the subject of a bidding contest. However, size matters and the bigger a company is, the easier it becomes for it to stay independent or dictate its own terms in any sector consolidation. I like Lloyds’ leading position in an industry I think is here to stay. While the Lloyds share price makes it a ‘penny stock’, the bank has a £30bn+ market cap and the characteristics of a blue-chip company with its long history and well-established business. That makes it attractive for my portfolio. Simple business model While the business model of banking is simple and has been essentially unchanged for centuries, the business itself is vastly complex and highly regulated. That can make banks’ annual accounts challenging to comprehend. With huge liabilities on their balance sheets but massive deposits to cover them, it is difficult to read an annual report for a bank and truly understand its financial health. One reason I like Lloyds as a private investor is that its business is simpler than that of many banks. It has a focus on the UK. It tends to concentrate its efforts on personal and business banking. That keeps it away from potentially lucrative but riskier activities such as investment banking. Meanwhile, its limited geographic reach reduces the risk of a huge financial exposure developing in a market thousands of miles from headquarters. There are still risks, of course. Lloyds could make bad decisions in its lending choices, and that could damage profits. An economic downturn could increase default rates, which would also risk cutting Lloyds’ profits.  UK dividend shares: Lloyds The bank has restarted dividends. It stockpiled excess cash while dividends were suspended, so its CET ratio at the half-year point was 16.7% versus its target of around 13.5%. In short, that translates to considerable surplus funds that could be used to pay a special dividend in future. Dividends are never guaranteed, but I like the bank’s progressive dividend policy. As the Lloyds share price pulls back, I see a buying opportunity for my portfolio. The post As the Lloyds share price falls, I would buy appeared first on The Motley Fool UK. Inflation Is Coming: 3 Shares To Try And Hedge Against Rising Prices Make no mistake… inflation is coming. Some people are running scared, but there’s one thing we believe we should avoid doing at all costs when inflation hits… and that’s doing nothing. Money that just sits in the bank can often lose value each and every year. But to savvy savers and investors, where to consider putting their money is the million-dollar question. That’s why we’ve put together a brand-new special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation… …because no matter what the economy is doing, a savvy investor will want their money working for them, inflation or not! Best of all, we’re giving this report away completely FREE today! Simply click here, enter your email address, and we’ll send it to you right away. More reading The Lloyds Bank share price is up 60%. Would I buy it? 2 British shares to buy now The Lloyds share price drops 15% since June. Time to buy? Why are Lloyds shares losing momentum? Is the Lloyds share price destined for disaster? Christopher Ruane owns shares in Lloyds Banking Group. The Motley Fool UK has recommended Lloyds Banking Group and Morrisons. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  24. Will Lloyds pay a dividend in 2021? (06/05/2021 - The Motley Fool UK)
    Lloyds Banking Group (LSE: LLOY) has paid its shareholders some big dividends in recent years. Last year, however, the FTSE 100 bank was forced to suspend its dividend by the Bank of England. The regulator wanted to ensure that UK banks had enough capital on hand to support the economy during the coronavirus pandemic. Will Lloyds pay a dividend in 2021? Let’s take a look at what the company has said about its distributions going forward. Will Lloyds’ dividend make a comeback in 2021? In Lloyds’ full-year results for 2020, posted in late February, the bank advised that its board had recommended a final ordinary dividend of 0.57p per share for 2020. This was the maximum allowed under the Bank of England’s guidelines. This dividend is set to be paid on 25 May 2021, which is only a few weeks away now. The ex-dividend date for this was 15 April 2021. A stock’s ex-dividend date is the day on which all shares bought no longer come with the right to be paid the most recently declared dividend. In other words, to receive this dividend from Lloyds, investors had to hold the stock on 14 April. In its full-year results, Lloyds also said that its intention is to accrue dividends and resume a progressive and sustainable ordinary dividend policy in the future. 2021 dividend policy More recently, in its trading update for the first quarter of 2021, Lloyds advised that it still intends to resume this ordinary dividend policy. It also said it expects the dividend this year to be at a higher level than 2020. However, right now, Lloyds is still restricted by the Bank of England’s policy on bank dividends. It’s waiting for the regulator to transition back to its standard approach to capital setting and shareholder distributions. This is expected to occur at some stage during 2021 (possibly in the next few months). Under this framework, bank boards are responsible for making distribution decisions. Lloyds has said that it will update the market on interim dividend payments with the half-year results, subsequent to reviewing the Bank of England’s update on distributions. This is expected ahead of the half-year results reporting cycle for the large UK banks. Lloyds’ dividend forecast 2021 As for the dividend forecasts for Lloyds shares, the consensus forecast for 2021 is currently 1.74p per share. Meanwhile, the consensus forecast for FY22 is 2.29p per share. At the current share price, these forecasts equate to yields of 3.8% and 5% respectively. It’s important to remember that these are just forecasts, though. Sometimes, analysts’ views can be way off the mark. The final word  In summary, Lloyds is going to pay dividends in 2021. Shareholders can expect to receive their first payout of 0.57p per share on 25 May 2021. However, beyond that, we don’t have much clarity in relation to Lloyds’ dividend. Payouts are likely to depend on a few factors including its level of profitability as the UK economy recovers from Covid-19, and rules set by the Bank of England. And as always with dividends, payouts are never guaranteed.  FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading Why I am buying Lloyds shares now The Lloyds share price leapt 7% last week. But it could go much higher Forget the Lloyds share price. These FTSE 100 shares can make me a passive income The Lloyds share price is rising: here’s what I’d like to do As the Lloyds share price rises, I’d still consider buying Edward Sheldon owns shares in Lloyds Banking Group. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Will Lloyds pay a dividend in 2021? appeared first on The Motley Fool UK.
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  25. Barclays share price versus Lloyds share price: which would I buy today? (20/04/2021 - The Motley Fool UK)
    Next week might be exciting for long-suffering UK bank shareholders. The UK’s Big Five banks — including Lloyds Banking Group (LSE: LLOY) and Barclays (LSE: BARC) — all report first-quarter earnings. HSBC Holdings leads on Tuesday, with Barclays and NatWest Group finishing on Friday. With US banks reporting bumper profits for Q1, I’m monitoring the Barclays share price and the Lloyds share price to see which offers the better bargain. Here’s what I think. The Lloyds share price and Barclays share price slip At its 52-week peak, the Lloyds share price closed at 45.02p on 13 April 2021. Now it stands at 42.62p, dipping 2.4p (5.3%) in a week. Likewise, Barclays shares peaked at 190.34p on 30 March 2021. They have since slid to 183.78p, losing 6.56p (3.4%). Maybe these shares will get an uplift when banks unveil their figures next week? After all, the banking regulator has allowed British banks to resume paying dividends. Also, three of the Big Five are buying back their shares, boosting future returns for shareholders who sit tight. This could provide support for Barclays shares and the Lloyds share price. Already, the FTSE 350 Banks index is the third-best performer of 40 FTSE 350 sectors in 2021, rising 15.5% this calendar year. Lower loan losses would be good for banks Across the Atlantic, the Big Four US banks made blow-out profits as financial markets boomed. They also boosted their bottom lines by reversing much of last year’s loan-loss reserves. With UK banks beefing up bad-debt provisions in 2020, some of these billions could flow back, pushing up profits. Again, this could boost the Lloyds share price and Barclays shares. Similarly, if demand for credit picked up in Q1/21 and loan growth resumed, this would be a relief for banks. But if credit keeps shrinking, or loan losses rise, that spells bad news. British banks are also keen to arrest shrinking net interest margins (NIMs). The NIM is the margin/spread between lending rates and savings rates. In 2020, Barclays UK’s NIM was 2.61%, the best of the Big Five, while Lloyds’ NIM was 2.52% (placing second). If these two banks can sustain or improve their NIMs, then this might underpin the Lloyds share price and Barclays stock. But if NIMs keep falling, that’s another body blow. Best stocks to buy now: Barclays or Lloyds? As a value investor, I use company fundamentals to guide my buying decisions. Thus, when weighing up the Lloyds share price, I compare it to peers and the wider market. Here’s how Barclays and Lloyds stack up, head to head.   2021E Q4 2020 2021E 2021E   P/E P/B Dividend Yield Dividend Cover Lloyds 10.8 0.83 4.0% 2.29 Barclays 11.0 0.69 2.9% 3.09 Source: A J Bell Based on price-to-earnings (P/E) ratio, the Lloyds share price is slightly cheaper than Barclays. Also, Lloyds has a higher dividend yield (4.0%/year v 2.9%), but the Barclays pay-out is better covered by earnings. In terms of price-to-book (P/B) ratios, Barclays offers greater ‘bank for my buck’ (0.69 at Barclays v 0.83). As a value hunter, Lloyds appears to be better bet for me. But Barclays, unlike Lloyds, is still big in investment banking. And this sector boomed in Q1/21 for US banks. So Barclays might enjoy an extra boost from higher investment banking revenues. That’s why I’m sitting on the fence. Today, I’d happily buy both the Lloyds share price and Barclays shares! One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading After a 15% rise in 2021, is the Lloyds share price heading for a strong recovery? Why I’d forget the Lloyds share price and buy this UK bank share! Here’s why I think the Barclays share price could climb in 2021/22 As the FTSE 100 hits 7,000, I’d buy its only penny stock I think these 2 FTSE 100 stocks might be among the best shares to buy today Cliffdarcy has no position in any of the shares mentioned. The Motley Fool UK has recommended Barclays and Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Barclays share price versus Lloyds share price: which would I buy today? appeared first on The Motley Fool UK.
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  26. Should I buy Lloyds shares in August? (06/08/2021 - The Motley Fool UK)
    After taking a hit at the outbreak of the pandemic, the Lloyds Banking Group (LSE: LLOY) share price has seen a healthy recovery. With the FTSE 100 stock up over 60% the past year, the release of its half-year results for 2021 saw the share price fall slightly. However, with UK growth forecasts looking positive, is August an opportunity for me to buy Lloyds shares? Reinstated dividends After initially halting dividends last year, a decision required by its regulator, Lloyds announced in its latest set of results that a further 0.67p per share is going to be paid to shareholders. That takes dividends over the past year to 1.24p. With a share price of 45.9p, at the time of writing, that means it offers a dividend yield of 2.7%. Although below the FTSE 100 average, at a time when the business is coming out of a gruelling pandemic, I deem this dividend yield an attractive factor when looking at buying Lloyds shares. More generally, the half-year results also provided some optimism. While net income rose by 2% (to £7.6bn) from the same period last year, profits were at £3.9bn, a vast improvement from the loss seen in the six months to 30 June 2020. Loans and advances were also up £7.5bn for the period – sat just below £450bn. This ponders the question of whether now is a good time to buy Lloyds shares before we witness a solid bounce back, inevitably boosting the share price.  Another beacon of positivity from the results was the recent acquisition of Embark, an investment and retirement platform, for close to £400m. This highlights how Lloyds is diversifying, another positive sign when I’m considering if to buy Lloyds shares. Lloyds issues With all the above said, issues with the major bank persist. First of all, and as my colleague Alan Oscroft mentioned, Lloyds operations are focused heavily in the UK. While this can provide opportunities, as many expect the UK economy to have a strong end to 2021 as we hopefully continue to see Covid cases fall, it also poses issues. Should we see a spike in cases, the UK economy could once again face the problems it has done over the past 18 months. Where competitors have diversified, for example, HSBC focusing its operations within Asia, Lloyds has not done so. Another issue with competition is that there are now banks that can offer a more dynamic service – a concept many customers may crave after the pandemic. Monzo, for me, is a standout in this respect. Should I buy Lloyds shares? Although I have highlighted issues with Lloyds, I generally have a positive outlook. The below FTSE 100 average dividend yield does not worry me, as a cautious return post-suspension should have been expected. Also, I think the UK economy has the potential to finish the year strong. Yet, the risk Covid provides makes me wary to buy Lloyds shares. For now, I will not be buying. The post Should I buy Lloyds shares in August? appeared first on The Motley Fool UK. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading 2 UK penny stocks to buy in August Would I buy Lloyds shares at 46p? Could Lloyds shares be a top FTSE 100 dividend pick? Should I buy Lloyds shares in August? Where will the Lloyds share price go in August? Charlie Keough has no position in any shares mentioned. The Motley Fool UK has recommended HSBC Holdings and Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  27. Lloyds share price: 3 reasons I’d buy today (02/07/2021 - The Motley Fool UK)
    Lloyds Banking Group (LSE: LLOY) is one of the most widely held UK shares. Popular among private investors as well as its employees, Lloyds has hundreds of thousands of individual shareholders. Thus, LLOY is one of the most popular tickers in UK searches. That said, the Lloyds share price has had a tough five years, putting shareholders through the wringer. The share price slumps and soars At its five-year high in May 2017, the Lloyds share price was nearing 72p. After several years of lacklustre performance, the shares closed out 2019 at 62.5p. However, as Covid-19 infections spread in early 2020, Lloyds stock crashed. Unlike many other FTSE 100 shares, Lloyds didn’t hit rock-bottom on ‘Meltdown Monday’ (23 March 2020). Instead, the shares collapsed to a low of 23.58p on 22 September 2020. Just two days later, I wrote, “I see a lifetime of value in Lloyds“, with the Lloyds share price at 24.58p. As I write, the shares hover around 47.41p. That’s an increase of almost 23p per share, meaning that the stock has almost doubled (+92.9%) in just over nine months. Despite this turnaround, I still like the stock. Here are three reasons why. Why I still like Lloyds My first reason for buying at the current Lloyds share price is its decline from recent highs. On 1 June, the stock hit a 2021 high of 50.56p. Since then, it has declined by more than 3p, leaving it 6.2% off its 52-week peak. As a veteran value investor, I relish buying shares when they show weakness. But I do so only if the underlying business case is still solid. For Lloyds, I think nothing much has changed since May. Second, after cancelling its cash dividend in 2020, Lloyds has now restored it, albeit at a much lower level. Lloyds paid a final dividend for 2020 of 0.57p a share on 25 May. An interim dividend for 2021 should be announced with the bank’s half-year results on 29 July, to be paid in late September. As an investor keen on accruing passive income, I hope to see steady (or even steep) rises in this payout as Lloyds returns to post-pandemic health. Third, and most important, this stock still looks cheap to me at the current Lloyds share price. Granted, the bank’s earnings are depressed right now, but are expected to rebound in 2021/22. On a forward basis, a forecast price-to-earnings ratio of eight gives a chunky earnings yield of 12.5%. Such a bumper earnings yield could support a dividend yield of 6.25% a year, twice over. Also, Lloyds has a rock-solid balance sheet and is valued at a steep discount to its underlying assets. Again, these are indicators of deep value among stock-pickers. Beware of Covid-19 setbacks Finally, although I’m currently bullish (positive) for Lloyds’ future, that might change suddenly. As with all banks, Lloyds is very cyclical (geared to the economic cycle). Right now, economists expect a multi-year boom in the UK and global economies. Alas, if new and more deadly variants of Covid-19 emerge, then this might blow up these predictions. Indeed, the threat of further UK lockdowns could send the Lloyds share price spiralling downwards again. In summary, I don’t own Lloyds shares today but, on balance, I’d buy and hold at current levels. The post Lloyds share price: 3 reasons I’d buy today appeared first on The Motley Fool UK. 5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times. Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down… You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm. That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! More reading The Lloyds share price: 3 things that could give it a boost 2 penny stocks to buy in July Is the Lloyds share price cheap? Should I buy Lloyds Banking Group stock? Should I buy FTSE 100 shares Lloyds, Tesco, or Glaxo in July? Cliffdarcy does not own shares in Lloyds Banking Group. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services, such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool, we believe that considering a diverse range of insights makes us better investors.
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  28. Lloyds’ share price could make it one of the best dividend shares to buy now (20/02/2021 - The Motley Fool UK)
    The Lloyds Banking Group (LSE: LLOY) share price has fallen by 30% over the last year, lagging the FTSE 100 by 20%. Lloyds hasn’t paid out a dividend since September 2019 and is only expected to declare a tiny final dividend for 2020. Despite all of this, Lloyds’ depressed valuation has got me interested. I expect the bank’s profits and dividend to recover strongly in 2021. Broker forecasts for this year suggest the stock could offer a dividend yield of more than 4%, with another big increase expected in 2022. Why I like Lloyds High street banks have had a problem with low interest rates in recent years. Put simply, low rates and strong competition among lenders have led to lower profit margins on mortgages and loans. I don’t think there’s any end in sight to low interest rates. But I do think banks are likely to find other ways to repair their profitability. One possibility is that competition will lessen in the mortgage market, resulting in higher mortgage rates. For Lloyds, which has around 20% of the UK mortgage market, this could make a big difference. Another area of potential growth is wealth management. Lloyds is expanding into this sector through a joint venture with City firm Schroders. Looking after rich people’s assets is generally more profitable than providing standard banking services, so this too could boost profits over time. Growth could be a struggle Lloyds’ big share of the UK mortgage market attracts me. I expect it to be a reliable source of income. But the bank’s large size and UK-only focus does present some challenges. I think these are behind Lloyds’ weak share price. In a mature market like the UK, growth opportunities could be limited. As far as I can see, Lloyds needs to steal business from its rivals to get bigger. That won’t necessarily be easy. Another concern is the impact of the coronavirus pandemic. Broker forecasts for 2020 suggest earnings fell by more than 50% last year, compared to 2019. Profits aren’t expected to rise above 2019 levels until 2022. If the bank can deliver on these forecasts, then I think the shares look cheap. But this isn’t guaranteed. As far as I can tell, no-one really knows how quickly the UK economy will recover when government support measures are withdrawn. One risk I can see is that unemployment will rise sharply after the furlough scheme ends. That could see more borrowers fall into arrears with their mortgages. Similarly, I think there’s a risk we’ll see a surge of small business bankruptcies. This could hit Lloyds’ corporate banking profits. Lloyds share price: at the right level? Of course, Lloyds hasn’t overlooked the potential for increased losses. The accounting rules which apply to banks require them to estimate expected future losses and book these against their profits. The bank included a £4.2bn impairment charge in its results for the first nine months of 2020, reflecting expected losses from the pandemic. If that’s as bad as it gets, then Lloyds looks good value to me at a share price of around 40p. I’d be happy to add a few to my dividend portfolio. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading Lloyds share price: will it rise if the dividend makes a comeback? If I’d invested £1,000 into Lloyds shares a year ago, here’s how much it’d be worth today The Lloyds share price is climbing in February. Should I top up my holding? I’m avoiding the Lloyds share price. I prefer this 5% dividend yield stock instead! Should I buy Lloyds Banking Group shares now? Roland Head has no position in any of the shares mentioned. The Motley Fool UK has recommended Lloyds Banking Group and Schroders (Non-Voting). Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Lloyds’ share price could make it one of the best dividend shares to buy now appeared first on The Motley Fool UK.
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  29. UK shares to buy now: here’s what I’d do with a £500 investment (31/03/2021 - The Motley Fool UK)
    ,With the UK stock market still looking cheap versus the US, and with many industries like banking that dominate the FTSE 100 set to recover this year, I’m looking at the UK shares to buy now for my stocks and shares ISA.  One of my UK shares to buy now The first stock I’d potentially add to my portfolio is Lloyds Banking Group (LSE: LLOY). Its shares seem well poised to benefit from the economy reopening and growing this year, as we bounce back from the pandemic. On top of that, Lloyds’ shares seem to have momentum, as investors increasingly look for value stocks. The share price is still down on where it was pre-pandemic. I also like that it’s a known banking brand, has got scale in the UK and under the current chief executive has been expanding into higher-margin areas of work, such as wealth management and credit cards. On the other side of the coin, the Lloyds share price is closely tied to perceptions of the UK economy. It’s also not very diversified, unlike Barclays or some European or US banks. By that, I mean it’s a retail bank with no investment banking to diversify earnings. Also, some might be tempted to think the business model faces disruption from fintech. That risk in turn could hold down banking share prices.  Lastly, CEO António Horta-Osório is leaving after a decade at the helm, which could be a positive or a negative. It may allow Lloyds to pursue a new strategy. That might deliver more value for shareholders, or it might see someone less capable than Mr Horta-Osório take over. Time will tell.  Overall I’m thinking about adding Lloyds shares to my portfolio as the economy recovers from Covid-19. The timing, as we recover from the pandemic, could make it a great share for me to buy now.  A share in a more high growth industry The second UK share I’d consider buying now for my portfolio is Tritax Big Box REIT (LSE: BBOX). The warehousing company provides the warehouses that the big e-commerce companies need as part of their logistics.  This means there’s growing demand for warehouses. On top of that, in many markets, including the UK, there is still plenty of room for e-commerce to keep growing. Specifically when it comes to Tritax as a UK share to buy now, what I like is its solid track record, and profitability. For me, that makes the shares worthy of consideration for my portfolio.   I’ll need to be wary, though, of the potential downsides – which include competition, given it’s a growing market. That could lead to pricing pressure. There’s also not a lot of dividend growth and the REIT structure lacks flexibility. What I mean by that is REITs have to pay out 90% of income as a dividend, which I think makes them vulnerable to cuts if markets worsen. That’s the opposite of investment trusts. They can hold significant reserves to pay investors dividends, even if income drops. Overall on the balance of risk versus reward, I’m thinking Tritax Big Box REIT looks like it could add growth and income to my portfolio. When I next have some cash in my portfolio, I’d likely be tempted to buy shares in UK banking giant Lloyds Banking Group or Tritax Big Box REIT. 5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times. Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down… You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm. That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! More reading These FTSE 100 shares are rising. Here what I’d do Buying the Lloyds Bank share? Here are 3 metrics I’d consider first The Lloyds share price is up 76% in six months. Am I too late to buy? UK shares to buy now: 3 I think can double my money in 3 years The Lloyds share price still looks cheap to me! I’d buy it today in an ISA Andy Ross has no position in any of the shares mentioned. The Motley Fool UK has recommended Barclays, Lloyds Banking Group, and Tritax Big Box REIT. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post UK shares to buy now: here’s what I’d do with a £500 investment appeared first on The Motley Fool UK.
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  30. Stocks and Shares ISA: which shares should I buy in 2021? (13/02/2021 - The Motley Fool UK)
    There’s not long to go until we have a whole new ISA allowance. That means we can invest up to £20,000 more come April, and not pay any tax when we eventually cash it in. For me, it brings the same old questions again. What types of shares are best for my Stocks and Shares ISA, and how should I invest differently this year? I generally prefer to buy FTSE 100 shares that pay dividends these days, and that might seem like a sensible ISA strategy. After all, dividend shares are less risky, aren’t they? And it should be easier for me to stash them away and ignore them for years, just taking the annual cash, shouldn’t it? Well, I own shares in Lloyds Banking Group. And the Lloyds share price is down around 35% over the past five years. Oh, and my nice safe dividends have been halted. Sure, the dividend has been paused at the behest of the regulator, and I suspect it’s likely to be reinstated relatively quickly. And I might buy some more for my 2021 Stocks and Shares ISA. But it does shows that dividend shares aren’t necessarily safer than growth shares. Growth vs income Speaking of growth shares, I also have a holding in Boohoo, which doesn’t pay any dividends. But the Boohoo share price has soared eight-fold over the same five years. Unfortunately I didn’t buy them that long ago. But, so far at least, my ISA money would have done a lot better in the growth stock that is Boohoo than in income-paying Lloyds shares. People might make assumptions about the relative risks of various types of shares. But I prefer to ignore such generalisations and focus on the individual companies. So if I’m convinced that a company is a great one and its shares are good value, I’ll rate it a buy. If not, I won’t. Some will argue that putting Stocks and Shares ISA money into dividend-paying shares is a good choice for retired investors. It can hopefully provide a steady income — at least, steadier than growth shares paying no dividends at all. But then, I have a friend who retired with a portfolio of growth shares. They pay only modest dividends now, and for years didn’t pay any at all. He gets his income by selling some shares at regular intervals. Stocks and Shares ISA strategy So for me, if the overall value of my Stocks and Shares ISA is increasing over the long term, and I can take regular income from it (via selling shares or collecting dividends), I’ll be happy. But what about 2021 specifically? The Covid-19 pandemic has changed the investing landscape dramatically, hasn’t it? Well, it hasn’t changed my long-term strategy in the slightest. I’m still guided by Warren Buffett’s exhortation to look for great companies at good prices. That might get me some better bargains while share prices are depressed. But I’ll be investing in exactly the same kind of companies that I was seeking anyway. The priority for me is to use as much of my annual Stocks and Shares ISA allowance as I can, without worrying about short-term ups and downs. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading Marston’s shares: what will I do now about the falling share price? Is it a good time to buy shares? 1 UK share I’d buy and hold for big returns Greatland Gold shares: should I buy for my 2021 portfolio? Coronavirus: will travel insurance protect me from cancelled summer holidays? Alan Oscroft owns shares of boohoo group and Lloyds Banking Group. The Motley Fool UK has recommended boohoo group and Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Stocks and Shares ISA: which shares should I buy in 2021? appeared first on The Motley Fool UK.
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  31. Why I think Lloyds’ share price could return to 60p (10/04/2021 - The Motley Fool UK)
    Shareholders in Lloyds Banking Group (LSE: LLOY) have seen their stock rise by more than 50% since November’s vaccine news reignited the UK market. But, at around 44p, Lloyds’ share price is still well below the 60p level seen shortly before the pandemic begun. Assuming the recovery continues, I think there’s a good chance the bank’s shares will return to 60p. In my view, Lloyds’ strong finances and improved profit outlook leave plenty of room for further gains. Plenty of spare cash The disruption caused by the pandemic last year meant Lloyds was required to account for a sharp increase in bad debts. The bank’s 2020 results included a £4.2bn impairment charge. This reflects expected losses from the whole pandemic, not just losses suffered last year. Lloyds doesn’t seem to have had any trouble absorbing this sizeable accounting charge. At the end of 2020, the bank’s tangible net asset value had increased, from 50.8p per share in 2019, to 52.3p. What this means is that Lloyds still generated surplus capital last year, despite the difficult circumstances. Banks use surplus capital to fund their dividends. For me, this is key to the investment case for Lloyds. Dividend appeal The events of last year seem to suggest Lloyds has a pretty strong balance sheet. The bank declared a small dividend for 2020 and is expected to make a much bigger payout this year. If the bank maintains its strong balance sheet this year and no further problems emerge, I expect more generous payouts of surplus capital. If I’m right, then I think future dividends should support a higher share price for Lloyds. For example, broker forecasts show a payout of 1.7p per share this year, giving a yield of 4%. In 2022, the dividend is expected to climb 35% to 2.33p per share, giving a yield of 5.4%. If this outlook stays unchanged, then I’d expect to see the Lloyds share price rise, as investors buy into this yield story. Lloyds share price: a safe bet? Of course, there are no guarantees any of this will happen. The big banks have run into problems before and probably will again one day. Bank accounting is complex, and history suggests that problems aren’t always detected until it’s too late. Another concern is that Lloyds is already very large, with a big share of the UK market. In my view, the bank’s focus on mortgages and consumer lending means it could suffer long-lasting problems if the UK fell into another serious recession. Even if things go well, I don’t know how much larger the business can get. However, these are known risks. I think Lloyds’ share price reflects most of these concerns and leaves room for growth. With the stock trading on just 10 times 2021 earnings and offering a 4% yield as we (hopefully) exit the pandemic, I’d be happy to buy the shares for my income portfolio. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading Lloyds share price: here’s what I’m doing about it Here’s what I’d do about Lloyds Banking Group stock right now The Lloyds share price is back above 40p! I think this is just the start UK shares to buy now: here’s what I’d do with a £500 investment These FTSE 100 shares are rising. Here what I’d do Roland Head has no position in any of the shares mentioned. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Why I think Lloyds’ share price could return to 60p appeared first on The Motley Fool UK.
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  32. The NatWest share price has been climbing. Should I buy now? (19/02/2021 - The Motley Fool UK)
    I’m always a little wary when a company changes its name. Still, I can understand NatWest Group (LSE: NWG) wanting to put the old Royal Bank of Scotland days behind it. And if the NatWest share price is anything to go by, the change is paying off. Since a low in September 2020, NatWest shares have recovered a bit more strongly than Barclays. And they’ve easily outperformed Lloyds Banking Group. In fact, since 21 September, the NatWest share price has gained 90%. That’s a cracking result for anyone who managed to time it right. But it only paints a small part of the picture. Over the past 12 months, NatWest has dropped 14%. And over five years, we’re looking at a 28% share price fall. On top of that, the dividend had only just started coming back after the bank’s earlier travails. And then it was halted last year at the onset of the Covid-19 pandemic. That didn’t help the NatWest share price either. But there must be an end to the pessimism somewhere, and an attractive time to buy. Mustn’t there? Well, there’s a bit of positive news in Friday’s full-year results. The dividend is back. The 3p per share final dividend amounts to a modest yield of 1.7%. But NatWest also included plans to pay out around 40% of profits as an ordinary dividend. Those profits aren’t here yet, mind. A big 2020 loss For the year to December 2020, NatWest recorded an operating loss of £351m. Impairment provisions rose too, by £1.4bn compared with 2019 to £6.2bn. So when the bank says it hopes to pay at least £800m in ordinary and special dividends over the 2021–23 period, I’m going to try to contain my excitement. I’ll wait and see. Still, the market did react positively. Despite a brief dip in morning trading, at the time of writing the NatWest share price is up 3.5% on the day. That’s better than Barclays, up 2.8%, and Lloyds, up 1.3%. Lloyds is the last of these big three to reveal its 2020 figures, with results due on 24 February, after Barclays reported on Thursday. But as things stand today, would I buy NatWest shares? Well, some of the uncertainty surrounding the financial sector has been at least partially cleared. The possibility of a no-deal Brexit was surely holding banking shares back, along with the rest of the stock market. But even though we have a deal, the visibility is still not exactly crystal. Trade in services, including banking, is still far from clarified. And though we’re enjoying considerable Covid-19 vaccine success, these new variants do keep popping up. NatWest share price support? I think it’s important not to lose sight of our economic outlook. We might be over the worst of the pandemic downturn. But we could still be in for a good few years of weakness. Still, liquidity figures at NatWest look decent, and I think that should help support the NatWest share price. I’m cautiously optimistic regarding banking in general, and NatWest specifically. But I already own Lloyds shares, and one bank is enough for me in the current risky financial climate. I’ll keep watching. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading 2 FTSE 100 UK shares I’d buy for 2021 My 2021 best stocks to buy list: shares I think are poised for a recovery FTSE 100 watch: should I buy this UK share for my Stocks and Shares ISA today? Lloyds vs Barclays vs NatWest: which FTSE 100 share would I buy for 2021’s recovery? Alan Oscroft owns shares of Lloyds Banking Group. The Motley Fool UK has recommended Barclays and Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The NatWest share price has been climbing. Should I buy now? appeared first on The Motley Fool UK.
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  33. Lloyds Banking goes ex-dividend tomorrow (05/08/2021 - Seeking Alpha)

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  34. Lloyds Banking reports FY results (24/02/2021 - Seeking Alpha)

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  35. The Lloyds share price is soaring. What should I do now? (19/05/2021 - The Motley Fool UK)
    As a long-suffering Lloyds Banking Group (LSE: LLOY) shareholder, I’ve waited a long time to write a headline like that. But the Lloyds share price is up 30% so far in 2021, and it’s doubled since September 2020. So I think that’s a fair way to describe it. But the price is still only around half what I paid. And over the past five years, Lloyds shares are down 32%. So what should I do now? Buying in September would have been perfect. But hindsight is always great, isn’t it? I don’t want to tempt fate, but it does look like we’re finally emerging from the Covid-19 crisis. After a year of slump, the UK economy is turning back in the right direction. And the near-universal fear of financial stocks looks like it could finally be ending. Lloyds share price future But first I want to sound a few notes of caution. Headlines proclaiming “UK economy set to climb in 2021” are best treated warily, I think. Like those stock market screamers that go “Fifty billion knocked off the value of UK shares,” they lose all meaning without the wider context. If a man falls off a cliff, survives, and starts climbing back up again, he’s doing relatively well. But he’s not conquering Everest. I do, however, see longer term reasons to be optimistic about the Lloyds share price. In the early days of the pandemic, the PRA insisted that the banks withhold dividend payments. Maintaining liquidity is a good idea. But I can’t help feeling the mandating of it by the PRA helped to foster a banking-crisis mentality. In general, that kind of intervention in a free market does not please investors. And the Lloyds share price crash was surely worse because of it. Still, as we now know, the PRA’s fears did not come to pass. Lloyds has announced a dividend of 0.57p, which will be paid on 25 May. That’s not much, but it’s all the PRA’s restrictions will currently allow. I think Lloyds will want to get back to making its own dividend decisions as soon as possible. Reasons to be cheerful As fellow Motley Fool writer Cliff D’Arcy has pointed out, there are other bullish factors that could drive the Lloyds share price. Bad debts haven’t been as bad as feared, which could free up some of the cash Lloyds has set aside. There hasn’t been a housing crash, and the banks aren’t facing hordes of mortgage defaulters. There’s still a risk that the current economic cheer might prove over-enthusiastic. In fact, I think it probably is. We don’t know how the UK will fare post-Covid-19 and post-Brexit. And Covid-19 hasn’t gone away. But I’m optimistic that my Lloyds dividends will be back to respectable levels before much longer. And I hope that will drive the Lloyds share price up further. 5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic… And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains. But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times. Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down… You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm. That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. Click here to claim your free copy of this special investing report now! More reading The Lloyds share price has doubled since September. Can it keep going? 5 reasons I think Lloyds share price can touch 60p The Lloyds share price is up 60% in a year! And I still think it’s good value Will the Lloyds share price hit 60p this year? Is the Lloyds share price cheap enough for me to buy the stock? Alan Oscroft owns shares of Lloyds Banking Group. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Lloyds share price is soaring. What should I do now? appeared first on The Motley Fool UK.
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  36. The Lloyds share price: 1 reason to buy and 1 reason to sell (10/07/2021 - The Motley Fool UK)
    Lloyds Banking Group (LSE: LLOY) has done well so far in 2021 and, over the past 12 months, it’s up more than 50%. But the Lloyds share price remains stubbornly short of the 50p level, briefly exceeding it in June, but then quickly falling back. As a long-term Lloyds shareholder, should I give up on waiting and sell? Or should I buy more? I can see arguments from both sides. The reason to buy now is a simple one. Valuation. Looking at fundamental measures alone, ignoring the underlying business (which I’ll come back to), Lloyds does look cheap to me. But after the pandemic crash, it takes a bit of digging for me to get to it. On the face of it, the Lloyds P/E multiple might seem high. I’ll leave out forecasts, as they’re surely even less certain than usual right now. Lloyds ended 2020 on a P/E of around 30, after a big Covid-crunched profit drop, and that’s not great. But if Lloyds can get profits back somewhere around 2018 and 2019 levels, that could come tumbling down. P/E set to fall? On today’s Lloyds share price, EPS figures in the pre-pandemic range would give us a P/E somewhere between eight and 14. At the upper end, I’d say that’s fair. At the lower end, I reckon it’s cheap. My favourite valuation metric though, is dividend yield. After all, I bought Lloyds for dividend income. Lloyds had to withhold dividends during the pandemic on the instructions of the Prudential Regulation Authority. But at Q1 time the bank said it has been “accruing dividends with intention to resume progressive and sustainable ordinary dividend policy.” So we should get them back. And pre-pandemic levels would yield around 6.5%, or better. These two measures, P/E and dividend yield, make me think the Lloyds share price is too low now. Economic outlook This all assumes that the future for Lloyds as a business is all rosy. And it might not be. My Motley Fool colleague Royston Wild has outlined what he sees as the bearish side of Lloyds. In short, it’s our fragile economic outlook. Never mind pundits who are going on about how well we’re recovering now lockdown measures are easing. No, that recovery is from a very low level to a not-much-higher level. Covid-19 restrictions look set to be fully lifted later this month. So will that signal a new economic surge? Maybe, but maybe not. Even the new health secretary Sajid Javid is suggesting new cases could rise to as high as 100,000 per day. And in Wales, ministers are suggesting that we need to learn to live with Covid. Lloyds share price pressure Royston also points to the current low-interest environment, which isn’t great for banks. He suspects, and I agree, that we’ll have low rates for quite some time to come. I can’t see them rising until we’re firmly back into economic growth, which I don’t expect any time soon. So what’s my take, buy or sell? The key thing for me is Lloyds’ apparent confidence in the future of its dividends. At today’s Lloyds share price, I’m more likely to top-up than sell. The post The Lloyds share price: 1 reason to buy and 1 reason to sell appeared first on The Motley Fool UK. There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! Don’t miss our special stock presentation. It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about. They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market. That’s why they’re referring to it as the FTSE’s ‘double agent’. Because they believe it’s working both with the market… And against it. To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this 'double agent'! More reading The Lloyds share price continues to slide. Should I buy now? This is what I’m doing about the Lloyds share price! Where will the Lloyds share price go in July and beyond? Lloyds share price: 3 reasons I’d buy today The Lloyds share price: 3 things that could give it a boost Alan Oscroft owns shares of Lloyds Banking Group. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  37. After a 15% rise in 2021, is the Lloyds share price heading for a strong recovery? (20/04/2021 - The Motley Fool UK)
    I was surprised when fellow Motley Fool writer Christopher Ruane pointed out that Lloyds Banking Group (LSE: LLOY) is the only penny stock in the FTSE 100. That’s treating anything priced under £1 as a penny stock, so not rock bottom. Still, at just 43p today, the Lloyds share price has followed a penny share trajectory since before the financial crisis, when it was up over £3. And, that 43p price is around the highest in 2021 so far. As recently as February, Lloyds shares sold for only 33p. And they dropped as low as 24p in 2020. Lloyds share price turning Are we looking at a down-and-out share to avoid? Or a long-awaited recovery? Since the bank released full-year results in February, the market does seem to have turned a little bullish. Despite 2020’s fears for the banking sector, the figures looked nowhere near as bad as they might have been. And after the Lloyds share price bottoming that month, it’s slowly been climbing back. Profits were still way down on previous years, what with Brexit and Covid-19 and all that. But some key measures looked good to me. Lloyds’ open mortgage book grew by £7.2bn in the year. I see that as important for two reasons. One is that Lloyds is a UK-focused bank now, and domestic mortgages are especially important. Secondly, the pandemic put pressure on the housing market, and there were even fears of a bit of a collapse. Thankfully that hasn’t happened, and we’ve even seen shares in our top house builders strengthening in 2021 alongside the Lloyds share price. Domestic banking strength I liked seeing customer deposits up by £38.9bn too, with a loan to deposit ratio of 98%. Coupled with strong liquidity measures, I see no cash flow problems at all. And that, I hope, can underpin the Lloyds share price in the coming years. But, with a share price still hovering down around 43p, it’s clear that not everyone in the market shares my optimism. I think that’s partly down to the lure of Lloyds being mostly potential. There’s little being delivered right now. I bought Lloyds shares back when the bank was recovering strongly from the financial crisis, and paying a solidly rising dividend. The dividend was key for me, and it’s now history. For 2020, Lloyds announced a dividend of a mere 0.57p per share. Never mind the 6% dividends I was enjoying at their peak, that’s just 1.3% on today’s Lloyds share price. And it’s not much more than half a percent on the price I originally paid. What upside? So that’s the downside. Crisis after crisis, resulting in years of disappointment. And the upside is mere potential, which is far from certain. But the low dividend is not a true measure of what Lloyds wants. No, it was the maximum the bank was allowed to pay under current regulation. And until we see a return to a free market, we can’t put a proper value on the Lloyds share price. But I do see potential for sustained growth now, coupled with strengthening dividend payments. I’m holding. I might even buy some more. A Top Share with Enormous Growth Potential Savvy investors like you won’t want to miss out on this timely opportunity… Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this ‘pure-play’ online business (yes, despite the pandemic!). Not only does this company enjoy a dominant market-leading position… But its capital-light, highly scalable business model has previously helped it deliver consistently high sales, astounding near-70% margins, and rising shareholder returns … in fact, in 2019 it returned a whopping £150m+ to shareholders in dividends and buybacks! And here’s the really exciting part… While COVID-19 may have thrown the company a curveball, management have acted swiftly to ensure this business is as well placed as it can be to ride out the current period of uncertainty… in fact, our analyst believes it should come roaring back to life, just as soon as normal economic activity resumes. That’s why we think now could be the perfect time for you to start building your own stake in this exceptional business – especially given the shares look to be trading on a fairly undemanding valuation for the year to March 2021. Click here to claim your copy of this special report now — and we’ll tell you the name of this Top Growth Share… free of charge! More reading Why I’d forget the Lloyds share price and buy this UK bank share! As the FTSE 100 hits 7,000, I’d buy its only penny stock I think these 2 FTSE 100 stocks might be among the best shares to buy today The Lloyds share price is rising, but I’d buy these stocks instead What does Lloyds’ final dividend payment mean for shareholders? Alan Oscroft owns shares of Lloyds Banking Group. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post After a 15% rise in 2021, is the Lloyds share price heading for a strong recovery? appeared first on The Motley Fool UK.
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  38. 3 shares to invest in with £3,000 (25/06/2021 - The Motley Fool UK)
    With a few thousand pounds to put into the UK stock market right now, I see plenty of options. Here are three shares to invest in for my portfolio with £3,000. To reduce my risk through diversification, I’d put £1,000 into each of them. Banking giant I think Lloyds (LSE: LLOY) remains an attractive home for £1,000 even after the share price has risen 49% in the past year. A FTSE 100 stock selling at penny share prices is a rare thing. But despite its price tag, this isn’t some minnow. Lloyds has a market capitalisation of £33bn. It is one of the biggest banks in the UK, and the leader in the mortgage sector. I also think the bank is in rude health. Even during the pandemic last year, it managed to turn a post-tax profit of £1.4bn. It has restarted dividends and plans to increase them in future. I think the dividend outlook, profitable business, and strong market position are all plus points for the Lloyds investment case. I see Lloyds as shares to invest in for my portfolio. One risk, however, is its heavy concentration in a single market. If the UK economy struggles, that will likely hit Lloyds’ revenue and profits. Growth shares to invest in Banking is a mature market, so, as well as Lloyds, I’d look for a growth name in which to invest £1,000. One growth name I would consider is Renalytix (LSE: RENX). Shares in this developer of AI-enhanced kidney diagnostic tools have more than doubled over the past year. But I think there could be further growth ahead. The company has recruited a new team of experienced executives to help ramp up its sales operations. It has secured agreement to offer its services to large parts of the US government. The company’s diagnostic platform could enable medical professionals to provide a vital service to patients effectively. A clinical study this year confirmed its efficacy. As a growth stock, though, there are clear risks here. The company has no revenue to speak of so far, so there is a risk that commercialisation could turn out to be slower and less successful than the company hopes. Tasty opportunity I think now is a good time to look again at Domino’s Pizza (LSE: DOM). I would consider these as shares to invest in with £1,000 of the £3,000. The well-known chain of pizza shops has focussed once again on the British Isles after years of trying to crack the European market. Last month it finalised the sale of its Icelandic business. I think that is positive, as it has economies of scale in the UK it lacked elsewhere. Even after lockdown, demand for takeout sales looks set to remain strong. In its first quarter, system sales in the UK and Republic of Ireland grew 18.7%. The company formula is simple and proven. I think Domino’s could continue to perform well in coming years. But I do think its menu could be a risk, as consumers shift towards a healthier diet and advertising restrictions grow on food stigmatised as unhealthy. That could hurt sales down the line. The post 3 shares to invest in with £3,000 appeared first on The Motley Fool UK. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading Should I buy Lloyds shares today at 47p? 3 reasons why I think the Lloyds share price could rise Why Lloyds stock has a lot of room to run in 2021 Forget the Lloyds share price. I’d rather buy other FTSE 100 shares in July The Lloyds share price is up 96% since October. Would I buy today? Christopher Ruane owns shares in Lloyds Banking Group and Renalytix AI plc. The Motley Fool UK owns shares of and has recommended Renalytix AI plc. The Motley Fool UK has recommended Dominos Pizza and Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  39. Lloyds Banking declares £0.0057 dividend (24/02/2021 - Seeking Alpha)

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  40. The Lloyds share price has doubled since September. Can it keep going? (17/05/2021 - The Motley Fool UK)
    For shareholders of Lloyds Banking Group (LSE: LLOY), 2021 has been a much better year than 2020. The Lloyds share price has been climbing steadily since late January. In my view, there could be more to come. The Lloyds share price is on a roll The Lloyds share price ended 2020 at 36.44p, having ridden a roller-coaster last year. By 29 January, it had declined to its 2021 closing low of 33p. That left it down almost a tenth (9.4%) since New Year’s Eve. The very next day, I said that I could see LLOY hitting 50p in 2021/22. Since then, Lloyds shares have been rising steadily — and almost in a straight line. On Friday, the Lloyds share price closed at 48.25p, just 1.75p below the 50p target I expected it to reach. That’s a gain of 15.25p — almost half (+46.2%) — since I said that “the Lloyds share price offers a positive skew of reward versus risk”. But, given the success of the UK’s vaccination programme, I think it might go higher. LLOY has nearly doubled from its 2020 low Of course, 2020 was a horror show for the Lloyds share price and shareholders in the Black Horse bank. At the end of 2019, LLOY closed at 62.5p. However, as the pandemic exploded worldwide, the stock went into meltdown. At their 2020 low, the shares closed at 23.98p on 21 September. Ouch. On 24 September, with the Lloyds share price languishing at 24.58p, I said that “I still believe that this FTSE 100 survivor is cheap as chips, so I would happily buy and hold its shares today.” Since then, this FTSE 100 stock has almost doubled (+96.3%). Furthermore, Lloyds’ market value was just £17.4bn back then, prompting me to say that “I’d happily pay this sum…to buy Lloyds outright.” Today, this Big Five bank is valued at £34.2bn, so my prediction was spot on. What could drive LLOY higher in 2021/22? As one of the UK’s leading lenders, Lloyds has endured a tough 15 months. But, thanks to Covid-19 vaccines, the UK economy is expected to rebound from this summer. However, with the shares at the top of their 52-week range, what could drive LLOY higher still? I see four potentially positive drivers for the Lloyds share price. First, as a highly pro-cyclical stock, a multi-year economic boom would be great news for it (and the UK). Second, if bad debts and loan losses remain low, then the bank may release more of its huge 2020 loan-loss reserves. Third, if inflation (rising consumer prices) starts to pick up, this might mean higher interest rates. And higher rates could mean a higher NIM (net interest margin) for Lloyds. Fourth, Lloyds will pay a modest cash dividend of 0.57p a share on 25 May. But when the bank’s profits and cash flows eventually recover, this dividend could multiply. Of course, my optimistic outlook for the Lloyds share price relies on one key factor: a sustained post-Covid recovery. But if vaccination programmes are less effective than hoped, or more new Covid-19 variants emerge, then this would be a bitter blow for humankind. In this scenario, the outcome might be more infections, higher unemployment, lower consumer spending and falling corporate profits. This outcome would undoubtedly be bad news for UK share prices, especially bank stocks. Still, and on balance, I’d be happy to back Lloyds at current price levels! CEO’s £500,000,000 Stake on Industry’s “Uber” Revolution We think that when a company’s CEO owns 12.1% of its stock, that’s usually a very good sign. But with this opportunity it could get even better. Still only 55 years old, he sees the chance for a new “Uber-style” technology. And this is not a tiny tech startup full of empty promises. This extraordinary company is already one of the largest in its industry. Last year, revenues hit a whopping £1.132 billion. The board recently announced a 10% dividend hike. And it has been a superb Motley Fool income pick for 9 years running! But even so, we believe there could still be huge upside ahead. Clearly, this company’s founder and CEO agrees. Learn how you can grab this ‘Top Income Stock’ Report now More reading 5 reasons I think Lloyds share price can touch 60p The Lloyds share price is up 60% in a year! And I still think it’s good value Will the Lloyds share price hit 60p this year? Is the Lloyds share price cheap enough for me to buy the stock? If I could only invest in one banking stock, I would buy Lloyds shares Cliffdarcy has no position in any of the shares mentioned. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post The Lloyds share price has doubled since September. Can it keep going? appeared first on The Motley Fool UK.
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  41. Lloyds share price forecast: is 50p obtainable this year? (10/03/2021 - The Motley Fool UK)
    I recently wrote about how much a £1,000 annual investment in Lloyds Banking Group (LSE:LLOY) would currently be worth. I talk in more detail about it there, but in short I’d be out of pocket several hundred pounds. This isn’t surprising, given that the Lloyds share price has been in a slow downward trend for the last four years. But after hitting a low last September, the price has moved almost 70% higher. So is another 25% move (taking it to 50p) really out of the question? The case for 50p In order for the Lloyds share price to take another leg higher, I think we’d need to see strong quarterly updates later this year. These would need to build on the full-year 2020 results from last month. There were several key elements from the results that give me optimism for 2021. Firstly, the reduction in impairments needed on the loan book. In July 2020, the bank was estimated to need to set aside £4.5bn–£5.5bn in provisions due to the pandemic. The actual year-end figure was £4.2bn. Going into 2021, if new provisions are again lower than expected, this will give investors more confidence that bad debt won’t be a big issue going forward. Secondly, the Lloyds share price could gain thanks to the outlook for dividend payments. These were resumed with an expected dividend of 0.57p per share. If we assume a share price around 40p for when the dividend gets paid, it’s a yield of 1.4%. Nothing spectacular, but definitely a start. Lloyds used to be a popular stock for income investors. So should the yield move higher in 2021, more could buy in for this purpose. Why Lloyds shares might struggle The current CEO, António Horta-Osório, is handing over the reigns after a decade at the helm. This isn’t fresh news, and the market digested this months ago. However, now comes the time where the real uncertainty begins. The new CEO, Charlie Nunn, has experience with HSBC. Yet this is still a big change for Lloyds and so any teething problems this year with the changeover could spell trouble for the Lloyds share price. Another element that I’ve mentioned before is that the outlook for interest rates isn’t positive in the UK. If anything, rates could fall from 0.1% down to 0% this year. This squeezes the net interest margin that’s the traditional way a bank makes money. For 2020, the net interest margin fell from 2.88% to 2.52%. It might not sound much, but if it falls by a similar amount in 2021, it’s bad news for Lloyds shares. Lower margins means lower profits, unless the bank can offset this by other divisions. However, given the lack of a sizeable presence in investment banking or trading in capital markets, it looks like Lloyds will continue to rely on retail banking.  My forecast for the Lloyds share price is that it can reach 50p by the end of the year. However, I expect a lot of this move to come towards the end of the year. The bedding in period of the new CEO, and the time needed to increase the dividends, could weigh on the share price in the short term. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading The Lloyds share price has increased by almost 50%. Here’s what I’d do This is what I’d do right now about the Lloyds share price The Lloyds share price keeps falling! Should I buy the stock now? Lloyds Bank share price: back to pre-crash levels of 40p. Should I buy it now? Why I’d ignore the Lloyds share price and buy this UK share from the FTSE 100 jonathansmith1 has no position in any of the shares mentioned. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Lloyds share price forecast: is 50p obtainable this year? appeared first on The Motley Fool UK.
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  42. Why Lloyds’ share price could make it a top dividend buy (18/07/2021 - The Motley Fool UK)
    Shares in Lloyds Banking Group (LSE: LLOY) have surged ahead of the FTSE 100 over the last year, rising more than 50%. But despite this gain, the Lloyds share price remains under 50p, and the bank’s stock now offers a forecast yield of 4.7%. As an income investor, I’m tempted to take a bite of this juicy payout. I reckon it could be one of the best dividend shares to buy today. Here’s why. Dividend set to grow The UK’s big banks were placed under dividend restrictions last year. Initially, the regulator banned them from making any payouts. Later on, dividends were restricted to 25% of quarterly profits. Understandably, these restrictions caused Lloyds’ share price to fall. These limits were put in place to ensure that banks would be able to handle any increase in bad debts or other losses resulting from the pandemic. The Bank of England wanted to make certain there would be no repeat of the 2009 bank bailouts. The good news is that these restrictions were removed last week. According to the Bank of England, they are “no longer necessary”. That certainly seems true at Lloyds, which reported a profit of £1.4bn last year and an increase in surplus capital last year. Lloyds’ spare cash is now significantly above its target levels, which suggests to me that shareholders can expect above-average dividend growth over the next couple of years. Broker forecasts support this view, suggesting that the 2022 dividend could rise by as much as 15%. What could go wrong? I’m bullish about the outlook for Lloyds. I believe the bank is well positioned to provide reliable dividends. It’s the UK’s largest mortgage lender and also has sizeable credit card and car finance operations. But there are risks. Firstly, banking is cyclical. Government support schemes prevented a surge of bad debts among businesses and consumers last year. But the UK economy could still fall into recession at some point after these schemes end. My guess is that Lloyds’ management will take a cautious approach to shareholder returns. They’ll want to ensure the bank can cope with future problems without cutting the dividend again. A second risk is that unlike most companies, the UK’s big banks aren’t always free to act as they see fit. Last year is a good example — the Bank of England effectively took control of banks’ dividend decisions. This might happen again. Lloyds share price: too cheap? Despite these concerns, I think that Lloyds shares offer good value at current levels. This year’s forecast dividend yield of 4.6% is expected to rise to 5.4% in 2022. Both payouts look easily affordable to me. At a share price of 47p, Lloyds’ shares are also trading around 10% below their book value of 52.4p. I see that as a sign of decent value. If the bank’s performance recovers as expected, I think the stock could support a higher valuation. On balance, I think Lloyds is attractively priced and should provide reliable, growing dividends over the next few years. I’d be happy to add the shares to my portfolio at current levels. The post Why Lloyds’ share price could make it a top dividend buy appeared first on The Motley Fool UK. Our 5 Top Shares for the New “Green Industrial Revolution" It was released in November 2020, and make no mistake: It’s happening. The UK Government’s 10-point plan for a new “Green Industrial Revolution.” PriceWaterhouse Coopers believes this trend will cost £400billion… …That’s just here in Britain over the next 10 years. Worldwide, the Green Industrial Revolution could be worth TRILLIONS. It’s why I’m urging all investors to read this special presentation carefully, and learn how you can uncover the 5 companies that we believe are poised to profit from this gargantuan trend ahead! Access this special "Green Industrial Revolution" presentation now More reading 3 reasons why I’m bullish on the Lloyds share price now Could this dividend news boost Lloyds’ share price? 2 penny stocks to buy in July Can the Lloyds share price recover again? Should I buy Lloyds shares to add to my portfolio today? Roland Head has no position in any of the shares mentioned. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  43. Could Lloyds shares be a top FTSE 100 dividend pick? (04/08/2021 - The Motley Fool UK)
    Over the past year-and-a-half, income investors like myself have seen dividends cut by various firms. Lloyds Banking Group (LSE:LLOY) is one such example. Following a request by the regulator (the PRA), UK banks halted dividend payments. This was in order to bolster cash flow and aid the balance sheet. Lloyds shares fell for much of last year, but following the recent resumption of dividends, could this be a great buy for the future? Resuming dividends Unlike companies in other sectors, it’s important to note that the dividend on Lloyds shares was cut last year due to the recommendation by the PRA. I don’t know whether the bank would have kept on paying income if this request wasn’t made, but it wasn’t a decision the bank took the direct initiative on.  Add into the mix the fact that Lloyds is straight away coming back and offering income payments following the lifting of such guidance. This shows to me that the bank is keen to attract and reward shareholders via dividends. For years before the pandemic, Lloyds shares offered investors a healthy dividend yield between 3%-6%. Given the fact that the bank is mature and unlikely to have rapid future growth, getting income investors on board is a key way to support the share price. This was shown in part by the latest half-year results. Aside from the increase of 8% in net income from the second half of last year, other good news came from the dividend announcement. A further 0.67p per share is going to be paid, taking the total dividend over the past year to 1.24p. With Lloyds shares trading around 46.8p, it offers a dividend yield of 2.65%. Pros and cons of Lloyds shares A dividend yield of 2.65% doesn’t make Lloyds shares a current FTSE 100 dividend star. The average dividend yield within the index actually sits just above 3%. Yet it’s the outlook that makes the shares appealing to me. The report spoke of the fact that “this dividend reintroduces a progressive and sustainable ordinary dividend policy”. It’s a step in the right direction and one that I think could continue, with the dividend per share rising. Lloyds is performing well. The mortgage book saw growth of £11.4bn in H1, with an average loan-to-value (LTV) of 63%. This LTV means a high level of customer deposits which means the risk on mortgages is low. The corporate bank also continues to highlight a lack of exposure to negatively impacted industries. Even the net interest margin (the difference between what the bank lends at and what it can borrow at) is expected to hold around 250bps for the rest of 2021. If this is the case, I’d be impressed. There are some negative points to consider before I would buy Lloyds shares. The mortgage growth is great, but what if we see a house prices crash? And what if the corporate bank sees larger than expected loan defaults later this year due to the Delta variant?  On balance, Lloyds isn’t the best FTSE 100 dividend stock for me to buy for short-term rewards. However, I would still buy it now as it’s a sustainable dividend payer with a positive outlook. The post Could Lloyds shares be a top FTSE 100 dividend pick? appeared first on The Motley Fool UK. Is this little-known company the next ‘Monster’ IPO? Right now, this ‘screaming BUY’ stock is trading at a steep discount from its IPO price, but it looks like the sky is the limit in the years ahead. Because this North American company is the clear leader in its field which is estimated to be worth US$261 BILLION by 2025. The Motley Fool UK analyst team has just published a comprehensive report that shows you exactly why we believe it has so much upside potential. But I warn you, you’ll need to act quickly, given how fast this ‘Monster IPO’ is already moving. Click here to see how you can get a copy of this report for yourself today More reading Should I buy Lloyds shares in August? Where will the Lloyds share price go in August? FTSE 100: 3 no-brainer shares to buy now Top British stocks for August Despite a strong Q2, the Lloyds share price remains weak. Is this a buying opportunity? jonathansmith1 has no position in any share mentioned. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  44. Should I invest in Lloyds now as its share price dips? (22/04/2021 - The Motley Fool UK)
    The Lloyds (LSE: LLOY) share price has risen approximately 40% in the past 12 months, from 30p to 42p. However, its rise came to a halt this week, with the stock down almost 4% from 44p since Monday. So, I’m wondering if this recent dip from Lloyds provides me with a good buying opportunity, or if it’s just a blip? A look at its financials Lloyds had a poor 2020 as profits fell 70% year-on-year to £1.2bn. I believe this was to be expected, especially at a time of ultra-low interest rates. Lloyds generates revenue by taking deposits and lending funds. Low interest rates mean lower returns. The British banking giant still had plenty of cash on hand to weather increased pandemic costs. For the quarter ending September 30, 2020, Lloyds held more than £200bn, a 30% increase year-on-year. Its tier 1 capital ratio — the ratio of Lloyds’ total equity capital to its total risk-weighted assets — was a healthy 15.2% at the end of its last fiscal year. Why is the Lloyds share price dipping? So why is the share price weakening? A potential reason could be Lloyds’ final dividend payment on 15 May. The company went through its ex-dividend date last week on April 15. This means that any Lloyds investors who bought the stock after this are not entitled to the bank’s final dividend payment of 0.57p per share. In my Lloyds article published last week, I mentioned that some volatility could follow. Another reason could be due to renewed concerns over the fragility of the British economy as we come out of this pandemic. As one of the country’s largest lenders, Lloyds’ stock tends to move in tandem with the UK economic outlook.  Growth potential There’s still plenty of bite left in Lloyds Banking Group. The UK banking leader’s open mortgage book grew by £7.2bn in the year. I’m optimistic about this for a number of reasons. Lloyds is a UK-focused bank now, and domestic mortgages are especially important. Knowing that this important part of its business is growing is a good sign for me. Thankfully, fears that the pandemic would collapse the housing market have not come to pass so far. In fact, we’ve actually seen shares in Britain’s top builders strengthening in 2021 alongside the Lloyds share price. I also enjoyed seeing customer deposits up by £39bn, with a loan-to-deposit ratio of 98%. Paired with strong liquidity measures, I can’t see Lloyds having cash flow problems at all. And that, I hope, can boost this FTSE 100 company’s share price in the coming years. My one concern about Lloyds’ share price My biggest concern about investing in Lloyds right now is the average British person’s savings. By the end of 2020, average savings had increased 25% to 15.6% of disposable income. This savings glut will add £180bn to UK household savings in the five quarters to June 2021. But this wave of deposits isn’t good news for banks, which will struggle to lend people money profitably. Britain’s new-found love of saving could actually drag on the Lloyds share price. So, should I buy? I would like to see the economy return to more normality before making a decision about Lloyds’ growth potential. Should its share price fall further, I may reconsider, but for now, I’ll be waiting for better results. “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner. But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared. What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations. And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! More reading Should I buy Lloyds shares now as a future potential dividend star? Barclays share price versus Lloyds share price: which would I buy today? After a 15% rise in 2021, is the Lloyds share price heading for a strong recovery? Why I’d forget the Lloyds share price and buy this UK bank share! As the FTSE 100 hits 7,000, I’d buy its only penny stock Jamie Adams holds no position in Lloyds Banking Group. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Should I invest in Lloyds now as its share price dips? appeared first on The Motley Fool UK.
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  45. Should I buy Lloyds Bank stock for my ISA or other cheap UK shares? (28/02/2021 - The Motley Fool UK)
    Lloyds Bank (LSE: LLOY) has always looked attractive to me as one of the best cheap UK shares. However, for the past decade, the lender has been going through a transition. After the financial crisis, the bank spent years trying to tidy up its balance sheet to recover from its losses. Unfortunately, just as it looked as if it had recovered fully from the financial crisis, the coronavirus pandemic struck.  For the past year, Lloyds has been attempting to manage the crisis as best it can. Luckily, the business has succeeded in avoiding falling back into the position it found itself in 12 years ago. And it now looks as if the lender is making progress drawing a line under the past year’s uncertainty. As such, I’m considering adding it to my ISA, although there are other UK shares I’m also reviewing.  Lloyds Bank outlook The outlook for the banking group has improved significantly over the past few months. At the beginning of the pandemic, there were serious concerns about whether or not Lloyds and its peers would be able to withstand a tidal wave of loan losses from the crisis. Even though they’ve had to write off billions of pounds in loans, they have. The UK financial services sector entered the situation in a relatively strong position. Other UK shares haven’t been so lucky.  The latest trading update from Lloyds Bank showed that the company’s balance sheet is robust. For 2020, the UK’s biggest mortgage lender reported profits of £1.2bn. Its core capital ratio, a key measure of financial strength, increased to 16.2%, up from 15.2% in September. The bank’s minimum is 12.5%.  These strong figures allowed management to declare a final dividend of 0.57p per share, the maximum permitted by the Bank of England. Other UK shares Based on these figures alone, I think the stock looks like an attractive acquisition at current prices. But there are risks to consider. The pandemic isn’t over, and we don’t know what the final impact on financial institutions will ultimately be. What’s more, low interest rates are hurting the UK financial sector. Banks like Lloyds depend on high interest rates to earn high profits. If rates remain where they are today for the next decade, which is likely, Lloyds’ income may never return to pre-pandemic levels.  Based on these risks, I wouldn’t rush to buy Lloyds Bank shares today. I think other UK shares may present a better way to play the UK economic recovery. These could include retailers such as Halfords. Of course, this retailer does face its own slate of risks, such as falling UK retail sales. However, the group can set its own prices, unlike Lloyds which has to rely on the Bank of England. This is a significant advantage. That’s why if I had to choose between the bank and retailer today, I’d avoid Lloyds and buy Halfords instead. One stock for a post-Covid world… Covid-19 is ripping the investment world in two… Some companies have seen exploding cash-flows, soaring valuations and record results… …Others are scrimping and suffering. Entire industries look to be going extinct. Such world-changing events may only happen once in a lifetime. And it seems there’s no middle ground. Financially, you’ll want to learn how to get positioned on the winning side. That’s why our expert analysts have put together this special report. If the pandemic has completely changed our lives forever, then they believe that this stock, hidden inside the tech-heavy NASDAQ, could be set for monstrous gains… Click here to claim your copy now — and we’ll tell you the name of this US stock… free of charge! More reading The Lloyds share price: here’s what I expect next The Lloyds share price: what do the latest results mean? Stock market recovery: 3 UK shares to buy today The Lloyds share price: would I buy the stock today? The Lloyds share price spiked to 41p before falling today! Would I buy LLOY now? Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post Should I buy Lloyds Bank stock for my ISA or other cheap UK shares? appeared first on The Motley Fool UK.
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  46. Should I buy Lloyds shares? (12/06/2021 - The Motley Fool UK)
    I have been considering buying Lloyds (LSE: LLOY) shares for my portfolio for quite some time. I nearly came close to pulling the trigger in late 2019. Back then, it looked as if the bank had finally moved on from its financial crisis problems and was at the beginning of a growth spurt. However, the coronavirus crisis forced me to rethink my opinion of the business. As loan losses piled up, it looked as if the bank would suffer years of low profits and high costs as it tried to recover all of the outstanding and defaulted loans.  Luckily, the Bank of England and the government acted rapidly to try and stabilise the economy. This has helped minimise the financial fallout. At the beginning of the pandemic, some analysts speculated that the UK’s largest banks could come close to collapse under the sheer volume of defaulted loans. They never even came close. In fact, lenders like Lloyds have exited the crisis in a stronger financial position than they went in thanks, in part, to the dividend ban that was in place for much of last year.  As such, I’m now once again considering adding Lloyds shares to my portfolio.  Growth potential I’m incredibly excited about the future of the UK economy. All economic indicators show it’s on track to recover from the coronavirus pandemic by the middle of next year. There are also some signs that the pandemic has helped push pay and productivity across the economy higher as companies have invested in new tech and hiked wages for valuable staff.  On top of this, consumers have saved tens of billions of pounds over the past 12-24 months. Once again, there are signs this money is being spent around the UK.  As one of the UK’s largest banks, Lloyds’ fortunes are tied to those of the country’s economy. And as the economy returns to growth, I think the demand for loans and other financial products will increase. This should help Lloyds’ bottom line.  The bank will also benefit from the fact it’s flush with cash. Its capital ratio was 16.1% at the end of March, compared to around 14% at the end of 2020. The higher the capital ratio, the more money Lloyds has to lend to customers, or return to investors.  Lloyds shares on offer  The combination of Lloyds’ strong balance sheet and UK economic growth suggests to me that now could be an excellent time to buy the stock.  That said, the group is still likely to face some challenges as we advance. Low interest rates are causing havoc across the banking sector. These are likely to remain in place for some time, which will weigh on group profitability. At the same time, the bank could come under pressure again if coronavirus restrictions are extended.  Still, despite these challenges, I’d buy Lloyds shares for their growth potential over the long run.  The post Should I buy Lloyds shares? appeared first on The Motley Fool UK. The Motley Fool UK's Top Income Stock… We think that when a company’s CEO owns 12.1% of its stock, that’s usually a very good sign. But with this opportunity it could get even better. Still only 55 years old, he sees the chance for a new “Uber-style” technology. And this is not a tiny tech startup full of empty promises. This extraordinary company is already one of the largest in its industry. Last year, revenues hit a whopping £1.132 billion. The board recently announced a 10% dividend hike. And it has been a superb Motley Fool income pick for 9 years running! But even so, we believe there could still be huge upside ahead. Clearly, this company’s founder and CEO agrees. Learn how you can grab this ‘Top Income Stock’ Report now More reading The Lloyds share price is up 50%. I’d still buy. The Barclays share price gains 25% in 2021, with Lloyds at 35%. Which is better now? Lloyds share price: here’s my outlook for the rest of the year The Lloyds Bank share price has touched 50p. Here’s what I’d do now Where will the Lloyds share price go in June? Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  47. I’d ignore the Lloyds share price and buy other UK shares in an ISA (28/04/2021 - The Motley Fool UK)
    Lloyds Banking Group (LSE: LLOY) has faced its problems, but the Lloyds share price has performed terrifically in recent months. The FTSE 100 bank has risen 30% in value during the past three months and, indeed, the past year. The share price has risen as a slew of positive updates on the British economy have come in. And that’s no coincidence given that the UK banking share’s fortunes are tied so closely to a strong domestic economy. Goldman Sachs now thinks economic activity on these shores will rise 7.8% in 2021. This not only smashes the US bank’s previous growth estimate of 7.1%. It also beats the 7.2% increase Goldman Sachs has pencilled in for US economy. Reasons to worry As the good news keeps on coming it might be natural to think that the Lloyds share price will keep on soaring. I certainly wouldn’t rule out more share price gains in the short-to-medium term. But I’m afraid I won’t be buying the FTSE 100 bank for my own Stocks and Shares ISA. I won’t buy Lloyds according to how I think its share price will perform in the near future. I buy UK shares according to what shareholder returns I expect to receive over a period of years (say a decade, or more). And, quite frankly, I’m not convinced that Lloyds will be able to cut the mustard. Among my concerns are the threat that the Bank of England will keep interest rates locked around record lows. Don’t forget that Threadneedle Street’s benchmark rate sat well below 1% for than a decade after the 2008 financial crisis. Anyone expecting rates to soar within the next few years, a necessary development to deliver decent profits at Lloyds and the other banks, is likely to end up sorely disappointed. Then there’s the massive inroads that challenger banks are making in the UK banking industry. Consumers are not just flocking to these new organisations because of their exceptional digital services. The likes of Starling Bank and Monzo also offer products which the country’s established banks simply can’t compete with. And the possibility of weak economic growth in Britain beyond 2021 is an issue for me too. A wave of corporate closures and a surge in unemployment could emerge when Covid-19 furlough schemes end later this year. A fresh surge in coronavirus infections this year or beyond could also hit revenues at Lloyds and cause bad loans to soar again. An economically-uncomfortable post-Brexit period also threatens to hit profits at Britain’s banks. The Lloyds share price DOES looks cheap On the plus side, Lloyds’ latest results underlined what it describes as its “very strong capital position.” This could help deliver gigantic dividends that could well drive the Lloyds share price skywards. There’s also the fact that the share price still looks pretty cheap. The UK bank share trades on a forward price-to-earnings (P/E) ratio of around 11.5 times. While this could also tempt a legion of new investors to buy in, as a long-term investor I think the risks far outweigh the potential rewards. I’d much rather buy other UK shares for my ISA today. CEO’s £500,000,000 Stake on Industry’s “Uber” Revolution We think that when a company’s CEO owns 12.1% of its stock, that’s usually a very good sign. But with this opportunity it could get even better. Still only 55 years old, he sees the chance for a new “Uber-style” technology. And this is not a tiny tech startup full of empty promises. This extraordinary company is already one of the largest in its industry. Last year, revenues hit a whopping £1.132 billion. The board recently announced a 10% dividend hike. And it has been a superb Motley Fool income pick for 9 years running! But even so, we believe there could still be huge upside ahead. Clearly, this company’s founder and CEO agrees. Learn how you can grab this ‘Top Income Stock’ Report now More reading Lloyds share price vs HSBC share price: which bank stock would I buy? Is the Lloyds share price undervalued? 2 UK penny stocks I’d consider picking now FTSE 100 stock Lloyds’ share price slips. Would I invest? Lloyds shares vs Deliveroo: which would I buy? Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The post I’d ignore the Lloyds share price and buy other UK shares in an ISA appeared first on The Motley Fool UK.
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  48. 2 UK shares to buy now with £2,000 (16/06/2021 - The Motley Fool UK)
    With £2,000 to invest in UK shares, I think I could find some long-term growth potential. Here are a couple of what I see as UK shares to buy now. Lloyds on the rise The Lloyds (LSE: LLOY) share price has been climbing over the past year. It’s up 45% in 12 months. I see that as a very strong performance. It’s been rewarding for shareholders who have held Lloyds during that time. So why do I still view these as UK shares to buy now? In short, I see further upside potential. Here’s why. During the pandemic, banks such as Lloyds were prohibited by their regulator from paying dividends. That rule has now been eased. Lloyds is paying out again. It still has some rules on how much it can pay though – and it has been paying the maximum. The bank has indicated that it plans to resume a progressive dividend policy when it can. Lloyds stayed profitable even during the pandemic. Last year, it recorded a pre-tax profit of £1.2bn. So it generates substantial free cash with which to pay dividends. Additionally, it has been building up a cash pile while it has been constrained from paying dividends. That could help to fund a special dividend in future. Business outlook Dividends are only attractive to me if they look sustainable. There’s always a risk dividends will be cut with any share, of course, and that includes Lloyds. But one reason I have confidence in the company is its focused business model. It has a market-leading position in the UK, where it is the leading mortgage lender. That helps make its strategy less complex to execute than some rivals with large global footprints, such as Barclays. It also means Lloyds is primed to benefit from the ongoing buoyancy of the UK housing market. That focus does also bring a risk though. As it is so tied to the fortunes of the UK economy, any downturn (such as a recession) could lead to declining revenues and lower profits at the bank. JD Sports’ proven formula I’d put the second £1,000 of my £2,000 investment pot into JD Sports. I see the retailer as one of the more attractive UK shares to buy now for my portfolio because of its proven retail formula. The company seems to understand what its customers want, and how to source it at a price that enables a decent profit margin. The growth has been strong – even the pandemic only slowed growth rather than reversing it. With geographic reach from the US west coast to Australia, JD is rolling its playbook out on a global scale. But its bricks and mortar footprint is only part of its operations. It has a sizeable online presence. JD has embraced digital sales as an opportunity rather than a threat to its shops. A risk with JD sports is mounting expenses in its globalised supply chain. With ship container costs soaring in recent months and raw material costs also growing fast, input costs could hurt its profit margins. The post 2 UK shares to buy now with £2,000 appeared first on The Motley Fool UK. One FTSE “Snowball Stock” With Runaway Revenues Looking for new share ideas? Grab this FREE report now. Inside, you discover one FTSE company with a runaway snowball of profits. From 2015-2019… Revenues increased 38.6%. Its net income went up 19.7 times! Since 2012, revenues from regular users have almost DOUBLED The opportunity here really is astounding. In fact, one of its own board members recently snapped up 25,000 shares using their own money… So why sit on the side lines a minute longer? You could have the full details on this company right now. Grab your free report – while it’s online. More reading Here’s why I’m not buying Lloyds shares Should I buy Lloyds shares today? Should I buy Lloyds shares? The Lloyds share price is up 50%. I’d still buy. The Barclays share price gains 25% in 2021, with Lloyds at 35%. Which is better now? Christopher Ruane owns shares in Lloyds Banking Group. The Motley Fool UK has recommended Barclays and Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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  49. 2 penny stocks to buy today (20/07/2021 - The Motley Fool UK)
    Penny stocks are ones that trade in pence not pounds. That doesn’t necessarily mean they are shares in small companies. In fact, some have market capitalisations of billions of pounds. But for whatever reason, their share price is languishing below a pound. Here are two UK penny stocks I would consider buying for my portfolio today. Hit the road The bus company Stagecoach (LSE: SGC) has continued to fall lately. It now sits around 65p, which means it has lost almost 40% of its value since April. Over the past year, the company has put on 22%. But the recent fall suggests that investor enthusiasm has been running out of road. A move to mixed working could risk commuter revenue falling compared to historical levels. Another risk in the short-term is further lockdowns in the UK cutting demand for bus travel. However, I remain upbeat about the outlook for Stagecoach. There is limited competition in the UK bus market, which puts Stagecoach in a strong position. It has deep expertise of the bus and coach market, allowing it to understand demand and market dynamics well. Getting out of the train business has freed Stagecoach up to focus on its strengths. I see the recent fall in the Stagecoach share price as a buying opportunity. It is high on my list of penny stocks to buy for my portfolio in July. Penny stocks to buy: Lloyds The high street bank Lloyds (LSE: LLOY) has been falling since the beginning of last month. It’s still deep in penny share territory. But over the past year, the shares have added 43%. I’m hoping that the recent fall is simply a brief interlude and the shares start to climb again before too long. The reason I think that might happen is that there has been a lot of good news for shareholders in recent months. Regulatory restrictions on dividends have been lifted. Lloyds has previously indicated it plans to return to a progressive dividend policy. Additionally, concerns which plagued the banking sector last year have diminished. Feared high default rates didn’t materialise, and Lloyds like competitors was able to reverse some provisions it had booked against possible bad loans. Meanwhile, although the UK economic recovery is unpredictable, the outlook has improved markedly over recent months. As Lloyds is heavily exposed to the UK economy, I see that as positive for the Lloyds share price. The Lloyds share price in the pennies But if Lloyds is attractive, why does it trade as a penny share? I think there are a number of reasons for that. While the dividend has been reinstated, its suspension last year made the bank less attractive to some investors. More fundamental is the recollection many investors have of the last financial crisis. It was at that point that Lloyds became a penny share, a status it has not shaken off since. There is the risk that another financial crisis could weaken banks such as Lloyds again. But I think many lessons have been learned since then. Lloyds’ capital structure today looks more robust to me than it did in 2008. With its strong entrenched position in UK banking, I include it among my penny stocks to buy. The post 2 penny stocks to buy today appeared first on The Motley Fool UK. FREE REPORT: Why this £5 stock could be set to surge Are you on the lookout for UK growth stocks? If so, get this FREE no-strings report now. While it’s available: you’ll discover what we think is a top growth stock for the decade ahead. And the performance of this company really is stunning. In 2019, it returned £150million to shareholders through buybacks and dividends. We believe its financial position is about as solid as anything we’ve seen. Since 2016, annual revenues increased 31% In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259 Operating cash flow is up 47%. (Even its operating margins are rising every year!) Quite simply, we believe it’s a fantastic Foolish growth pick. What’s more, it deserves your attention today. So please don’t wait another moment. Get the full details on this £5 stock now – while your report is free. More reading 3 FTSE 100 shares to buy after the ‘Freedom Day’ crash Lloyds shares: opportunity or warning? Why Lloyds’ share price could make it a top dividend buy 3 reasons why I’m bullish on the Lloyds share price now Could this dividend news boost Lloyds’ share price? Christopher Ruane owns shares in Lloyds Banking Group and Stagecoach. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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