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20 June 2021
14:43 hour

The Lloyds share price has doubled since September. Can it keep going?

The Motley Fool UK

17/05/2021 - 08:08

The Lloyds share price has almost doubled since September and has had a great 2021. But what might send the shares even higher? Here are my four ideas! 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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  1. 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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  2. 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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  3. The Lloyds Bank share price has touched 50p. Here’s what I’d do now (02/06/2021 - The Motley Fool UK)
    A little over a month ago, I was confident that Lloyds Bank (LSE: LLOY) was on its way back up. In today’s trading, the Lloyds Bank share price reached 50p, the level I had predicted.  Why I expected the Lloyds Bank share price to rise My argument was based on the momentum recently seen in its share price. A positive earnings report, improving economy, and its own bullishness were the reasons I expected to see these gains.  Specifically, I had said that this was possible in a matter of months, if not less. It has taken just a month and a few days. In fact, it was so increasingly evident to me that it would cross 50p soon, that by mid-May I had said that it could now head to the 60p mark.  The next important question These short-term price targets are helpful to me as an investor to understand the share better. At the same time, we at the Motley Fool are interested in a long-term answer.  The question to which is: Can the Lloyds share price continue to generate capital gains for me over time? I think it is important to ask this question right now more than at any other time I have tracked the stock. This is because until last year, Lloyds paid a hefty dividend. This meant it was a somewhat attractive stock despite its weak share price trend.  But last year, the Bank of England asked banks to first stop paying dividends and then allowed them only cautiously. As a result, the Lloyds dividend yield is low. So if its share price does not continue to rise, I just do not see any reason to buy the share.  There is much hope I am hopeful though. The regulator hopes that the “guardrails” as they are called, will be there for only some time. Lloyds’ and other banks’ latest healthy results only encourage this idea further. As do the BoE’s optimistic projections for economic growth. This means that not only can it start paying dividends, its share price can continue rising too.  But also a catch But here is a catch. House prices are still elevated, but BoE’s numbers from earlier today show a sharp fall in home loans in April compared to the month before.  Lloyds is the country’s biggest lender in the category, so I would watch this trend going forward. This is important because the stamp duty holiday gave a big push to the housing market in an otherwise poor year. And it will start getting withdrawn from the end of June.  My takeaway for the Lloyds Bank share price I think the next update from Lloyds is an important one. It will give a real insight into the bank’s performance after the economic wheels start turning again. It might also give guidance to help in making an assessment of its future.  As I said in my last article on the bank, I will wait for another update before making a call on the Lloyds share price.  “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 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 The Lloyds share price is soaring. What should I do now? The Lloyds share price has doubled since September. Can it keep going? Manika Premsingh 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 Bank share price has touched 50p. Here’s what I’d do now appeared first on The Motley Fool UK.
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  4. 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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  5. 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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  6. The Lloyds share price leapt 7% last week. But it could go much higher (04/05/2021 - The Motley Fool UK)
    Last week was a good one for long-suffering shareholders of Lloyds Banking Group (LSE: LLOY). After releasing decent results, the Black Horse bank’s shares jumped. Indeed, the Lloyds share price ended the week up almost 7%. But I think this could be the start of a sustained recovery for Lloyds shares. The Lloyds share price leaps 6.6% On Friday, 23 April, the Lloyds share price closed at 42.63p. A week later, it closed at 45.44p. That’s a rise of 2.81p (6.6%) in a week — one of the stock’s best performances in 2021. In fact, Lloyds was the third-best performer in the FTSE 100 index last week (narrowly beaten by two other bank stocks). Also, the shares have been on a bit of a winning streak in 2020/21. Here are their gains over four recent timescales: 1M +6.8% 3M +35.8% 6M +62.1% 1Y +40.9% Lloyds has been a long-term loser Hey, it’s all been sunshine and roses for Lloyds shareholders, right? Wrong! Here’s how the Lloyds share price has performed over the longer term: 2Y -27.4% 3Y -29.7% 5Y -33.3% As you can see, the Lloyds share price has been a short-term cherry, but a long-term lemon. Indeed, it’s down exactly a third over the past half-decade. Over the same period, the FTSE 100 index is up almost a seventh (13.8%). That’s a massive underperformance by LLOY. As one of the UK’s leading lenders, Lloyds was battered by the Covid-19 crisis. Last year, the bank set aside over £4.2bn in loan-loss reserves. This contributed heavily to after-tax profit collapsing by more than half . It was down 54% to £1.4bn in 2020, from over £3bn in 2019. Still, the Lloyds share price has come a long way from the low of 23.59p it hit on 22 September 2020. Still, any brave investors buying at this time would have almost doubled their money today. Can the bank bounce back in 2021/22? Happily, the bank unveiled an improved set of figures last Wednesday, when it released its first-quarter results. One bright spot was credit impairments (reserves against bad debts) at a mere £323m in Q1/21. This helped after-tax profit to reach £1.4bn for January to March. Remarkably, that is the same as in the whole of 2020. This explains the leap in the Lloyds share price last Wednesday and the impressive weekly rise. To really thrive once more, Lloyds really needs three things. First, it needs consumers to start spending at pre-Covid-19 levels, boosting the UK economy. Second, it needs individuals and businesses to start borrowing again, instead of stashing their cash on deposit. Third, the bank needs to arrest the decline in its NIM (net interest margin; the spread it makes between savings and lending rates). If all three were to come in, then banks would hit the jackpot and I would expect the Lloyds share price to surge from here. But what if economists and central bankers are wrong and the world doesn’t undergo a multi-year economic boom? If UK growth stutters, then unemployment could rise and bad debts creep up. Similarly, any further Bank of England rate cuts would hit Lloyds’ bottom line. Also, new Covid-19 variants could hinder the UK’s long-awaited return to normality. But I’m optimistic that mass vaccinations will eventually get us to a better place. Thus, I think the Lloyds share price still has a long way to go and I’d be happy to buy at current levels. 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 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 The Lloyds share price is up again. Should I buy some more? The Lloyds share price is headed back to 50p. Would I buy it? 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 leapt 7% last week. But it could go much higher appeared first on The Motley Fool UK.
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  7. The Lloyds share price is rising, but I’d buy these stocks instead (16/04/2021 - The Motley Fool UK)
    Lloyds Bank (LSE: LLOY) had a hard 2020, to be sure. But the Lloyds share price has come a long way from its lowest point. It has doubled, in fact.  Why the Lloyds share price could underwhelm There is much to like about Lloyds Bank as a company. It is one of the UK’s largest banks, with a long legacy. The bank has recovered from more than one downturn. It is profitable even at a time when interest rates are low and retail banking is its biggest income generating segment.  But there are challenges to it as well. Being UK-centred is great when the economy is booming, but a recession here would impact Lloyds Bank more. Peers like HSBC would be more protected because they are geographically diversified. Brexit is likely to impact it more too.  Moreover, Lloyds dividends are capped by the banking regulator for now. As a result, it has a low dividend yield of 1.3%. While this is a temporary restriction, I reckon it is holding the Lloyds share price back. Pre-pandemic, a high dividend yield made it an attractive stock.  I think it is because of these reasons, and the fact that the UK is still partly in lockdown, that the Lloyds share price is held back even now. At its last close of 43p, the share was 27% below the levels where it started 2020.  Will it come back to those levels? It could, but I am not holding my breath. If past trends are anything to go by, the Lloyds share price is unlikely to grow consistently.  What I’d do now Much as I want to get behind the stock, purely because the bank has strong credentials, I would like to see its performance post-pandemic for longer before making a call. In the meantime, I will focus on fast growing stocks that have far more predictable share price trends. Or at least are less pricey than the Lloyds share, which has a price-to-earnings (P/E) ratio of over 35 times right now.  FTSE 100 stocks I like FTSE 100 stocks like Spirax-Sarco Engineering and Halma, the provider of technology solutions for safety, are two examples of companies that have seen broadly rising share prices.  Both of them are ahead on the key metric I am tracking right now to assess established companies’ financial health right now – profits. They reported profits in 2020, despite the year being what it was. In my view, this positions them well for a year when growth will return. However, they have higher earnings ratios, than Lloyds, which needs to be kept in mind.  I also like FTSE 100 miners, all of which have consistently lower earnings ratios than Lloyds Bank. Among these, I like Rio Tinto right now, which has come off its highs. Others like Glencore and Anglo American, on the other hand, are touching multi-year highs at present.  One catch to miners is that their rally is being driven by huge public spending, primarily from China. If that were to slow down, their fortunes could turn. But whether that will happen is a matter of some debate.  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 What does Lloyds’ final dividend payment mean for shareholders? Here’s why I expect the Lloyds share price to have a great 2021/22! Why I’d ignore the rising Lloyds share price and buy other UK growth shares Are Lloyds shares making a comeback? I was right about the Lloyds share price! Here’s what I’d do now Manika Premsingh owns shares of Glencore. The Motley Fool UK has recommended Halma, 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. The post The Lloyds share price is rising, but I’d buy these stocks instead appeared first on The Motley Fool UK.
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  8. I was right about the Lloyds share price. Here’s my outlook now (19/05/2021 - The Motley Fool UK)
    Back in March, I wrote a piece where I stated that I thought Lloyds Banking Group (LSE:LLOY) shares could reach 50p. At the time, it was trading about 25% below this level. If we fast-forward to today, the Lloyds share price is currently trading around 48p, so almost at the target level. I will admit that my outlook was for 50p to be hit later this year, and that the move towards this level has come at a quicker pace than I expected. So what does this mean for the bank for the rest of the year? The reasons for the rally The movement higher in the Lloyds share price over the past couple of months has been very sharp. This can be put down to a couple of different reasons. Firstly, first-quarter results built on the full-year results that were released in February. The full-year results were positive, with the icing on the cake being the resumption of a small dividend. Investors were keen to see whether Q1 results would continue this momentum. In my opinion, it did. Underlying profit came in at £2.07bn, up 58% from Q4 2020. It was also considerably higher than Q1 of 2020, although given the pandemic impact I don’t judge it against this figure.  Aside from quarterly results, the rising inflation expectations have also been a benefit to the Lloyds share price. Although this has been a negative for companies with heavy debt loads, it’s been a positive for the bank’s business model.  Higher inflation should lead to higher interest rates from the Bank of England. This will filter through to the net interest margin that the bank makes. The higher the interest rates, the larger the difference between the rate the bank charges (lends) and pays (deposits). My outlook for the Lloyds share price I do think the rally in the Lloyds share price close to 50p has been warranted. A 25% move in three months is a lot, and it’s up 64% over one year. So I do think there will come a point when all the good news is priced in to the stock. I don’t think we’re there yet though. For example, I think there is upside potential surrounding the future dividend payout. More information on this is due at the half-year results. If the outlook is for the bank to resume to a higher payout policy into next year, then I think the Lloyds share price could rally. Another reason for my positive outlook is the indirect benefit the bank will get from further easing of lockdown restrictions. It’ll take time for consumer spending and business investment to properly resume. When it does, Lloyds will undoubtedly benefit as it’ll be the facilitator in these transactions. The main risk to my view is that the above events don’t happen as quickly as I expect. Rates could be kept low for years to come, and the recovery in the economy could take longer as well. In this case, the trend higher in the Lloyds share price could stagnate. Overall, I have enough exposure to banking stocks at the moment, but if I didn’t then I would look to buy Lloyds shares. 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 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 Will the Lloyds share price hit 60p this year? 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 I was right about the Lloyds share price. Here’s my outlook now appeared first on The Motley Fool UK.
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  9. Lloyds share price: should I buy in February 2021? (12/02/2021 - The Motley Fool UK)
    The Lloyds (LSE: LLOY) share price has been largely flat since the start of 2021. But with dividend income likely to return in 2021, could it be a sound investment for my portfolio?  Pre-pandemic, Lloyds supported one of the most generous dividend yields, offering between 5.5% and 7% dividend income per year.  That all ended as Covid-19 hit. Worried about an economic crash, the Bank of England put a sector-wide kibosh on plans for £8bn-worth of dividends. Barclays, HSBC, Royal Bank of Scotland; every major bank was forced to stop paying its shareholders dividend income. It was a cruel blow to cash-strapped investors. And Lloyds was no exception. Lloyds share price to rise? Thankfully, the City regulator lifted the ban in December 2020. And the bank has since signalled willingness to return vital dividend cash to its shareholders. So as an investment prospect, Lloyds is suddenly back on my radar.  The Bank of England now thinks that UK families will “fuel a rapid return to prosperity with a multibillion-pound spending spree”, the Guardian reported this week.  The central bank’s chief economist, Andy Haldane, believes that with the Covid-19 vaccine rollout in play, there are “enormous amounts of pent up financial energy waiting to be released”. That would mean a more productive environment for Lloyds earnings. And it could certainly boost the Lloyds share price. It could mean the UK housing market stabilises. If so, the bank could issue more mortgages and loans as people feel happier to spend freely to make up for lost time.  Lloyds finances The bank’s most recent results from Q3 2020 show quite a rosy picture. Chief executive António Horta-Osório noted this. He said: “We have seen a significant change in financial performance with a return to profitability. I have great confidence in the future of the group and in its competitive position”. Lloyds revealed pre-tax profits for the three months ending 30 September 2020 of £1bn, with a common equity tier one (CET1) ratio of 15.2%.   This latter point is very important. Since the banking collapse of 2008, all international banks have been forced to keep enough capital on hand to withstand severe financial stress. Since 2019, the minimum level has been a CET1 ratio of 4.5%. So I see it as positive for the Lloyds share price to see the bank dramatically exceed this level. What’s next for Lloyds As a long-term value investor, I’m not much concerned with day-to-day price movements, share chat bulletin boards, or screaming headlines. Value is what I seek. So does the Lloyds share price make it undervalued? Because that’s the point at which I’d buy in.  At today’s price-to-earnings ratio of just 10, I think Lloyds is undervalued. The bank nearly doubled its revenue from 2018 to 2019. And there are signs we could enter a rapid economic recovery in the late stages of 2021. I’d suggest investors could be waiting for dividend income to be confirmed before buying in.  But I see it like this: while the Lloyds share price might be languishing now, that provides me with an opportunity. I like to look to the most likely future, and be greedy when others are fearful. “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 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 UK share investing: why I’d ignore Lloyds and buy these 2 cheap FTSE 100 shares Lloyds’ share price: here’s what concerns me The Lloyds share price is recovering but here’s why I won’t buy back in TomRodgers 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: should I buy in February 2021? appeared first on The Motley Fool UK.
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  10. Should I buy Lloyds Banking Group shares now? (14/02/2021 - The Motley Fool UK)
    Last September, the Lloyds Banking Group (LSE: LLOY) share price bottomed out just below 25p. So today’s near-37p price represents a fair advance over a period of just under five months. But scope back a full year, and Lloyds was about to tip into its sharp plunge from around 57p. So the stock has yet to regain even half the ground it lost when the pandemic hit the markets. Earnings set to bounce back Meanwhile, City analysts expect both earnings and the shareholder dividend to bounce back by percentages measured in three figures this year. And it’s difficult to make a case for the valuation looking expensive. For example, the price-to-asset value is just over 0.5. And the forward-looking earnings multiple for 2021 is just below 11. On top of that, if the dividend payments arrive as predicted this year, the forward-looking yield is around 4.4%. If economies continue to recover because vaccines beat back the pandemic, I think there’s potential for further business recovery at Lloyds. And the stock will likely anticipate that recovery by moving higher first. But because Lloyds runs such a cyclical business, it’s sensitive to the general economic outlook. If the recovery in the economy stalls, I think we’ll see evidence of the deteriorating outlook in Lloyds share price. As well as upside potential, I reckon the rise in the Lloyds share price has increased the downside risks for shareholders. And because of the pandemic, we’ve recently seen how fast Lloyds business can decline if the economic conditions aren’t just right. Because of its cyclicality, I’d never aim to make Lloyds shares a long-term holding in my portfolio. I’m expecting the business and the stock to behave in a similar way it did following the previous big economic shock. Following that credit crunch, the stock bottomed in the spring of 2009. However, by September 2010, the share price was near the top of a trading range it couldn’t exceed. The possibility of a shrinking valuation For almost a decade, earnings edged higher. But instead of the share price rising to accommodate that growth, the valuation contracted instead. Indeed, by traditional valuation measures, Lloyds looked compelling. However, the next big move was the catastrophic collapse in earnings, shareholder dividend and share price because of the pandemic. If it hadn’t been for the pandemic, my guess is Lloyds would still be moving sideways. Meanwhile, its valuation would probably have been gradually contracting while the market waited for the arrival of the next general economic down-leg in the cycle. So right now, I see limited, shorter-term upside potential for Lloyds shareholders followed by lots of downside risk (as before). To me, the inherent cyclicality in Lloyds’ business is the overriding consideration when evaluating the stock. I’ve been banging on about this theme regarding the London-listed banks for years. But my approach has saved me from making some big investment mistakes in the sector. Of course, I could be wrong. Perhaps this time it’s different. We’ll find out more with the full-year results report due on 24 February. 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: 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 UK share investing: why I’d ignore Lloyds and buy these 2 cheap FTSE 100 shares Lloyds’ share price: here’s what concerns me 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 Should I buy Lloyds Banking Group shares now? appeared first on The Motley Fool UK.
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  11. 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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  12. 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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  13. Should I buy Lloyds shares now as a future potential dividend star? (21/04/2021 - The Motley Fool UK)
    Lloyds Banking Group (LSE:LLOY) shares are frequently among the most traded stocks within the FTSE 100 index. Over the past couple of years, the focus has been on potential share price growth instead of dividend potential. The last dividend was paid out back in September 2019. Since then, the impact of the pandemic has meant that the bank has cut the dividend. Times are changing, so could now be the right time for me to buy Lloyds shares for future dividend income? The 2020 dividend cut The decision to cut dividends last year wasn’t solely down to Lloyds. As the pandemic started to grow, the PRA regulator contacted all major banks. It advised them to cut dividends in order to maintain a strong cash position. Given the relationship between the regulators and banks these days, any ‘advised’ action is taken as an instruction by a bank. Even without the PRA call, I think Lloyds would have decided to cut the dividend anyway. Last summer, the bank was reporting the need to set aside £4.5bn-£5.5bn for bad loan provisions. Although the year-end figure was reduced to £4.2bn, during 2020 that end figure was still unknown. So the safe thing to do was to cut the dividend in case the provisions figure was at the top end of the estimate.  Even if the bank had kept the dividend, I still don’t think it would have stopped the slide in Lloyds shares. Technically, the share price is up 39% over the past year. However, this doesn’t include the market crash from March. Over two years the share price is down almost 37%, which I feel is a more accurate representation of its performance during this period. My outlook for Lloyds shares Looking forward, things do look brighter for income investors buying Lloyds shares. In February, the bank announced a resumption of dividend payments, due to be paid at the end of May. The amount was 0.57p per share.  Using a current share price around 42p, this provides a dividend yield of 1.35%. The FTSE 100 average yield is 3.06%, so it currently isn’t a dividend star by any means. But this is just the start, a tentative toe in the water from the management team.  Back in 2019, buying Lloyds shares would have given me a dividend yield above 5% for most of the year. So it’s clear that although past performance is no guarantee of future returns, the dividend yield for Lloyds should return over time to a higher level. One risk to buying Lloyds shares is the continued low-interest-rate environment we find ourselves in. This ultimately will make it hard for a retail-focused bank to make money in the traditional way, given the fact that the rate is so low.  Yet overall, I do think Lloyds shares are a good buy for myself for future dividend income. With the share price low based on historic levels, buying now could help me to increase my yield down the line. For example, if I buy at 42p and next year the dividend gets raised to 1.14p, my yield has doubled to 2.7%. 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 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 I think these 2 FTSE 100 stocks might be among the best shares to buy today 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 Should I buy Lloyds shares now as a future potential dividend star? appeared first on The Motley Fool UK.
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  14. Lloyds share price vs HSBC share price: which bank stock would I buy? (26/04/2021 - The Motley Fool UK)
    Despite the challenges posed by the pandemic, bank stocks have performed better than many would have expected. This means that the Lloyds (LSE: LLOY) share price has risen over 70% since its lows last September and the HSBC (LSE: HSBA) share price has risen around 50% in the same period. Such a strong performance has been enabled by resilient earnings, a return to dividend payments and the quick vaccine rollout. But there are still problems for both of these bank stocks, such as the low interest rates. As such, should I buy either of these stocks, or are there still too many risks? The Lloyds share price Lloyds’ fourth quarter earnings were significantly better than many had expected. Indeed, the bank reported underlying profits of £1.3bn, which was only a drop of 15% from the previous year. In the tough economic circumstances, this is a strong performance and explains the rise in the Lloyds share price.   The bank also announced a dividend of 0.57p per share, which is the maximum allowed under the Bank of England’s current restrictions. It also signalled an intention to resume share buy-backs at the end of the year, highlighting a “very strong capital position”. Increased shareholder returns bodes well for the Lloyds share price and indicates that the future looks brighter. Nonetheless, there are still a couple of risks to highlight. Firstly, after a decade in charge, António Horta-Osório is leaving Lloyds, being replaced by Charlie Nunn. Although change may help bring a new direction and new ideas, there is also the risk that new management can disrupt the business. For now, it is very hard to judge which way it will go. Secondly, the Lloyds share price has risen due to the increased optimism of a full economic recovery. If Covid cases are to start rising again, as seen in some other countries, Lloyds will probably be one of the big fallers. Despite these challenges it still faces, I believe that Lloyds will be able to recover further throughout 2021. I would happily add this stock to my portfolio. HSBC shares  With greater exposure to Asia, HSBC is a very different kind of bank to the UK-focused Lloyds. However, in previous years, it has underperformed, in part due to a lack of clear focus. Change does seem incoming at the moment, driven by Chairman Mark Tucker and CEO Noel Quinn. As part of the changes, management is further targeting Asia for growth, which includes transferring as much as $100bn of assets to this region. The bank has also announced that it will further shrink in Europe and the US. These radical changes will hopefully be accompanied by rising profits. However, I’m still not convinced.  With the bank remaining committed to being headquartered in London, I feel there is still a lack of focus. Geopolitical tensions, especially in China, also remain a problem, and this may disrupt business for the bank. For these reasons, I’m staying away from HSBC shares. 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 Why I think the HSBC share price is undervalued 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? Stuart Blair has no position in any of the 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. The post Lloyds share price vs HSBC share price: which bank stock would I buy? appeared first on The Motley Fool UK.
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  15. The Lloyds share price is falling again! Should I take advantage and buy? (12/02/2021 - The Motley Fool UK)
    The Lloyds (LSE: LLOY) share price has been falling again over the past week. Shares in the lender have declined just over 3% since Monday. It appears that concerns about the group’s exposure to the fragile UK economy are behind the decline.  This decline is just the latest in a string of ups and downs. Over the past six months, the Lloyds share price has increased in value by around 25%. However, over the past 12 months, the stock is down 36%. Over the past five years, it is off 40% excluding dividends.  Put simply, the bank has been a tough investment to hold over the past five years. But, with the outlook for the UK economy improving, should I make the most of the latest decline and buy the shares?  Is the Lloyds share price on offer?  Shares in Lloyds tend to move in tandem with the UK economic outlook. As one of the country’s largest lenders, that’s understandable. If the economy starts to stutter, the bank will likely be one of the first businesses to report a decline in sales and rising loan losses.  I think this is the reason why the Lloyds share price has been so volatile over the past half-decade. Brexit and the coronavirus crisis have been two challenging headwinds for the UK economy. As such, it has been difficult to predict what the future holds for the economy and the country’s largest companies.  However, at least one of these headwinds has now been removed. Brexit has happened, and while some sectors have suffered from the changes, overall, the economy seems to have taken the changes in its stride so far.  That leaves coronavirus. So far, the pandemic’s impact has not been as bad on Lloyds and its peers as initially expected. Unfortunately, we won’t know the crisis’s ultimate impact until it’s over. That suggests to me that this headwind will continue to weigh on the Lloyds share price in the near term.  Mixed outlook It’s difficult to predict how Lloyds will cope in the world after the pandemic and over the long term. It’s impossible to tell what the economy will look like 12 months from now, and how quickly it will recover.  Therefore, while the stock might look attractive after its recent declines, projecting future growth is almost impossible. That makes it difficult for me to say whether it is worth buying the stock today. On the one hand, the Lloyds share price could be a great way to play the UK economic recovery. But on the other hand, if it is impossible to tell what the future holds for the UK economy, it is also impossible to say what the future holds for the bank.  Still, I am cautiously optimistic about Lloyds’ outlook, but I am wary of the risks involved. So, I would buy the stock for my portfolio today, but it wouldn’t be a large position.  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: 2 reasons I’m keen right now, but 2 big risks I’d note UK share investing: why I’d ignore Lloyds and buy these 2 cheap FTSE 100 shares Lloyds’ share price: here’s what concerns me The Lloyds share price is recovering but here’s why I won’t buy back in Why I’d ignore Lloyds and buy other cheap UK shares for my ISA! 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 The Lloyds share price is falling again! Should I take advantage and buy? appeared first on The Motley Fool UK.
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  16. 5 reasons I think Lloyds share price can touch 60p (15/05/2021 - The Motley Fool UK)
    Lloyds Bank (LSE: LLOY) has seen some rocky times in recent years. It was impacted by Brexit and the limbo around it, a indifferent economy, and the corona crisis. The effect can still be felt, to be sure.  But things are looking up.  This is evident from its improving financials, expectations of better asset quality, and the return of economic growth. Lloyds share price trends upwards It is little wonder then that the Lloyds share price has been on a roll. From the end of January it is up by over 45%. Over the past year, it is up by an even more impressive 68%.  As I write, it is at 48p. This means, in a single bullish trading session it can touch 50p. In my last article on the Lloyds share price, I had raised the question of whether it was possible.  My conclusion was that it could read 50p. I saw this happening in months, if not less.  It is almost there in just over two weeks already. How about 60p for the Lloyds share price? This leads me to the next question. Can the Lloyds share price rise to 60p? Again, I think it can. Here are five reasons why. #1. Improving financials: Lloyds Bank’s next set of results is likely to see continued improvements as fundamental aspects impacting the bank’s business are in its favour. Stock prices can move upwards when the company releases positive updates or results. We can expect some share price increase when that happens.  #2. Continued stock market rally: I expect the stock market rally to continue. Even though the FTSE 100 index has had a wobble in the past few days, its broad trend is upwards. This should positively impact the Lloyds share price as well. #3. Possible return of high dividends: Low present dividends reduce banks’ attractiveness to investors. But there is little banks can do about it. Dividends are based on regulatory guidance, which luckily, is expected to be temporary. As the economy goes back to normal, these measures should be withdrawn. This could add further momentum to the Lloyds share price, which had a high dividend yield before the pandemic.  #4. Encouraging past share price trends: Going by past trends, it has taken a little over three months to add 12p to its share price. Conceivably then, it can rise to 60p in another three months. In other words, the increase is not outside the realm of possibility. #5. The past is proof: At the start of 2020, it was already at 60p levels, so they are not unheard of or too far in the past to be reached again.  A point to note From present levels, this would mean a 25% increase in the Lloyds share price in a quarter. But unless it can continue to rise even from there, I think a long-term investor should look at the bank more carefully.  For years before the pandemic happened, the bank’s price trend was flat. And after the pandemic, it dropped sharply.  What I’d do now For a long-term investment, I would think this one through first.  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 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 Lloyds’ share price is rising. Should I buy today? Manika Premsingh 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 5 reasons I think Lloyds share price can touch 60p appeared first on The Motley Fool UK.
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  17. 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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  18. Buying the Lloyds Bank share? Here are 3 metrics I’d consider first (30/03/2021 - The Motley Fool UK)
    The Lloyds Bank (LSE: LLOY) share price has had a good run in the last six months. Vaccine development and the stock market rally, being allowed to pay dividends again, and an improved economic outlook have given momentum to the stock.  So should I buy it now? I’d consider the following three metrics first before making the call: #1. Share price change In the past half-year, the Lloyds Bank share price has risen more than 60%. This is strong growth, but the question I would ask here is – how does it compare to its peers’ performance?  Of the other FTSE 100 banking entities – Barclays, HSBC, Standard Chartered and NatWest – I compared it to the first two. Standard Chartered has not seen any appreciable share price increase in the past year and Natwest is loss-making right now, so they were not similarly comparable. The Lloyds Bank share price has indeed risen faster than HSBC, which has grown 42%. But it is still far lower than Barclays’ 90% share price growth.  #2. Dividend yield What the Lloyds Bank share lacks for in terms of price increase, however, it can make up for in dividend yield.  Here too, the Lloyds Bank share sits somewhere in the middle. It has a dividend yield of 1.5%, compared to Barclays’ smaller yield of 0.5% and HSBC’s higher yield of 2.5%.  Considering both share price increase and dividend yield in mind, the Lloyds Bank share is not unattractive. But I would bear two more points in mind here: There are FTSE 100 growth stocks with higher dividend yields around (like, Rio Tinto). I would look at these too, rather than restrict myself to banks. Banks’ dividends are capped for now by guardrails set out by the Bank of England. This is a temporary measure, but it does mean that banks’ yields are likely to be less competitive than other stocks for the time being.  #3. Earnings per share To assess if it can pay a higher dividend, I look at the earnings per share (EPS) number as well. A higher EPS indicates that the bank can continue to pay dividends and possibly even increase them.  The Lloyds Bank share is in a weak place on this measure. Its EPS, at 1.2p, is way lower than that for both Barclays and HSBC at 8.6p and 19p respectively. While I would keep this in mind, given that 2020 was a bad year I would take it with a pinch of salt for now. The verdict for the Lloyds Bank share On the whole, based on these three metrics, the Lloyds Bank share does have merit. Right now, it is a growing stock that pays a dividend. Its dividend yield, however is low and going by its current EPS numbers, it does not look likely that this FTSE 100 stock will become a huge income generator anytime soon. At the same time, I think things can improve for the Lloyds Bank share as the economy reopens and rebounds, and banks’ business takes off. It is on my investing radar.  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 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 The Lloyds share price is rising: should I buy now? Why I’d ignore the Lloyds share price and buy this cheap UK share right now Manika Premsingh has no position in any of the shares mentioned. 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. The post Buying the Lloyds Bank share? Here are 3 metrics I’d consider first appeared first on The Motley Fool UK.
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  19. Lloyds share price: here’s my outlook for the rest of the year (07/06/2021 - The Motley Fool UK)
    The Lloyds Banking Group (LSE:LLOY) share price currently trades just under 50p. So is that good? Depending on the historical timeframe you look at, different opinions can be formed. For example, over one year this represents a gain of 44%. Yet over two years, the share price is actually down 15%. Clearly, there’s a mixed story here, and I think this carries forward into the outlook for the rest of the year. Looking back before looking forward From 2015 to 2019, the Lloyds share price traded in a rough range between 50 and 85p. The bank wasn’t setting the world on fire with its offering to customers, but at the same time it was performing OK.  This all changed during the stock market crash in March of last year. The share price plunged through the key 50p barrier, and closed at 27.7p in the first week of April. No one could have predicted the extent of the negative impact that the pandemic would have on the economy. But with the share price currently around 50p, clearly the impact of the pandemic wasn’t fatal for the bank. This was for a few reasons. Firstly, the stock market tries to be a forward-looking barometer. The Lloyds share price fell heavily in that month as investors tried to predict the worst-case scenario. This would mean large losses due to loan and mortgage defaults, both for individuals and companies. It’s true that Lloyds did have to set aside large amounts for the potential losses. In Q2 2020, it set aside £2.4bn in impairment charges just for that quarter. Yet in reality, the impact was less severe, meaning charges could be reduced by the time of the annual report. Another reason why the shares have bounced back from the lows is that Lloyds is heavily exposed to the UK economy. But the outlook for the economy is much better now than it was a year ago. Positive sentiment has therefore lifted the shares. My outlook for the Lloyds share price So would I buy it today? I’d put my outlook as cautiously optimistic right now. I think the Lloyds share price will continue to have a strong correlation to the UK economy. Retail sales data for April showed monthly growth of 9.2%. If it continues to move higher, this could be good news for Lloyds.  I’m cautious regarding the economy as some parts of it might still be fragile. For example, house prices are soaring, but banks only lent £3.3bn to homebuyers in April, down from £11.5bn in March. Any disruption in this market would impact the economy. It would also be damaging for Lloyds, which is a large lender in this space. The Lloyds share price should be boosted from the resumption of dividend payments. Income investors could start to buy the shares again for the income that comes with them. If the yield moves higher by the end of the year, this should help the Lloyds share price move above 50p.  The risk here is that if the dividend remains low (the payment last month was 0.57p per share), it might struggle to attract any large inflows from income-hungry investors. Overall, I think the Lloyds share price can move higher in the second half of the year, so would be happy to buy it at 50p.  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 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 The Lloyds share price is soaring. What should I do now? 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: here’s my outlook for the rest of the year appeared first on The Motley Fool UK.
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  20. 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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  21. Here’s why I expect the Lloyds share price to have a great 2021/22! (14/04/2021 - The Motley Fool UK)
    Looking ahead, the outlook for British banks appears bullish, with pent-up demand expected to be unleashed. When a strong economic recovery finally comes, it should favour cyclical businesses most. These companies’ earnings have the greatest potential to rise with surging consumer spending. Banks’ highly cyclical earnings are very much tied to the economic cycle, so they could benefit greatly from the widely anticipated rebound. Hence, here’s why I think the Lloyds share price might be a winner in 2021/22. The Lloyds share price is up 20% in 2021 The Lloyds share price has come a long way since 22 September 2020, when it crashed to a 52-week low of 23.59p. What’s more, Lloyds shares have already got off to a great start in 2021. On Tuesday afternoon, they hovered around 43.76p, up 7.32p — a fifth (20%) — this calendar year. That’s ahead of the 6.6% rise in the FTSE 100 index since 2020. Nice. Higher consumer and business lending? During 2020, loan growth fell off a cliff as consumer lending shrank and individuals rushed to repay their debts. Now, British banks are optimistic that, as consumer spending builds, so too will demand for credit. With Lloyds being one of the UK’s biggest lenders to consumers and corporates, higher loan growth should translate into increased earnings. What’s more, any sustained boom could mean higher inflation and, in time, potential rate rises from the Bank of England. Higher interest rates should boost Lloyds’ revenue by reversing its declining net interest margin (NIM). The NIM is the spread Lloyds makes between savings and borrowing rates and it’s been falling for years. Both of these factors ought to support the Lloyds share price. Releasing loan-loss reserves During 2020, UK banks put aside tens of billions in extra reserves to cover bad debts and loan losses. However, thanks to huge government support for the economy, a large proportion of these expected losses has failed to materialise. As a result, Lloyds might be able to release some of the £4.2bn it set aside for loan losses in 2020. This rebate could allow the bank to increase its cash dividend or buy back its shares (all subject to regulatory approval, of course). Again, this could help the share price. Our savings surge doesn’t help the Lloyds share price One fly in the ointment is that Britons are saving like crazy. In the 30 years to 2019, the UK savings ratio — the proportion of disposable income we save — averaged 9%. A year ago, it surged to 25% and was 15.6% at end-2020. 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 — not unless they can lend it out profitably. Hence, our newfound love for saving could actually act as a drag on the Lloyds share price. Oops. In summary, the best news to boost the Lloyds share price would be a multi-year economic boom. And the worst thing for everyone would be if deadlier, more infectious new variants of Covid-19 take hold. Right now, the green shoots of growth are just emerging, but we should see more of them as the summer goes on. If all goes well, then the shares might finally rise above the 65p they hit in December 2019! On the balance of probabilities, I would definitely be a buyer of Lloyds at the current share price. “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 Why I’d ignore the rising Lloyds share price and buy other UK growth shares Are Lloyds shares making a comeback? I was right about the Lloyds share price! Here’s what I’d do now Why I think Lloyds’ share price could return to 60p Lloyds share price: here’s what I’m doing about it 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 Here’s why I expect the Lloyds share price to have a great 2021/22! appeared first on The Motley Fool UK.
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  22. This is what I’d do right now about the Lloyds share price (08/03/2021 - The Motley Fool UK)
    The Lloyds Banking Group (LSE: LLOY) share price has been on a rollercoaster ride over the past 12 months. The UK banking share toppled to nine-year lows below 25p in September. But buying interest in the FTSE 100 bank has risen strongly since those troughs. In fact Lloyds is now trading fractionally more expensively than it was a year ago around 42p. But can the Lloyds share price keep on soaring? Reasons to be cheerful Here are three reasons to be optimistic about the Lloyds share price: #1: Turning the Covid-19 tide: Britain’s services-dependent economy meant that domestic GDP was one of the worst affected of all developing economies following the Covid-19 outbreak. But there are hopes that the UK could be well past the worst in an obvious boon to UK-focused cyclical shares like Lloyds. Indeed, the Bank of England recently predicted that the economy will bounce back strongly thanks to the successful vaccine rollout. Revenues could well be about to soar (and bad loan provisions recede) at the likes of Lloyds. #2: Dividends return: Helped by its robust capital position Lloyds announced at February’s full-year results that it was reinstating dividends. The bank said that it plans to “resume [a] progressive and sustainable ordinary dividend policy.” City analysts certainly expect shareholder payouts to keep growing over the next couple of years too. Thus Lloyds sports chunky yields of 4% and 5.5% for 2021 and 2022 respectively. #3: Riding the digital wave: In a difficult year Lloyds at least continued to make progress on making its business more digital. Customer satisfaction rates keep on improving in this area and the bank added 2m mobile app customers in 2020. The FTSE 100 firm has also digitalised 78% of its cost base now, beating its own targets for creating a more efficient company. Threats to Lloyds That said, there are still significant threats to the bank’s long-term profits outlook. These could cause fresh trouble for the Lloyds share price: #1: Low interest rates: An environment of rock-bottom interest rates has been damaging earnings at the likes of Lloyds for more than a decade now. Weak interest rates squeeze the rates that banks lend to borrowers at, and the rates that they offer to savers. But things have got even worse since coronavirus broke out as the Bank of England cut rates to new historic lows. These might remain in place for many years to support the economic recovery as well. #2: Huge competition: The steps Lloyds is taking to embrace the fast-growing digital banking segment are encouraging. However, there’s no guarantee that this technological drive will prevent its customer base from steadily eroding. More digitally-based rivals are set to enter the British market (JP  Morgan is the latest to throw its hat into the ring). So Lloyds will have to keep investing heavily to try and stay ahead of the pack. In conclusion… It’s quite possible that the Lloyds share price could keep surging. But I won’t be investing in the FTSE 100 bank, given the still-uncertain economic outlook and soaring competition. I’d rather buy other UK shares for my ISA. “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 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 Should I buy Lloyds Bank stock for my ISA or other cheap UK shares? The Lloyds share price: here’s what I expect next 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 This is what I’d do right now about the Lloyds share price appeared first on The Motley Fool UK.
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  23. 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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  24. 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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  25. Nureca share price hits upper circuit for 4th straight day; investors money more than doubled so far in April (22/04/2021 - Financial Express)
    Nureca share price hit the upper circuit for the fourth consecutive day on Thursday, rising 5 per cent to Rs 1,218.60 apiece
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  26. The Lloyds share price is headed back to 50p. Would I buy it? (28/04/2021 - The Motley Fool UK)
    Adding to the buoyancy of this earnings season, Lloyds Bank (LSE: LLOY) too posted a healthy first quarter update. Investors are clearly happy. The Lloyds share price is up by 4% this morning, making it the biggest FTSE 100 gainer in today’s trading so far.  The Lloyds share price stands at 45.4p as I write, the highest in over a year. If the momentum built up by its latest numbers continues, I reckon it is only a matter of time before it goes back up to its pre-market crash levels of 50p.  Since January 2021 alone, the Lloyds share price has risen by over 10p, which shows that it is possible in a matter of months, if not less.  Why the Lloyds share price can keep rising The key, however, is that share price momentum should continue. I think there are three reasons it can.  #1. Profits rise: Lloyds Bank’s net profits came in at £1.4bn this quarter, which is a 191% increase from the same quarter last year. This is because of betterment in its bad debt provisions. It actually has a £323m impairment credit this quarter, compared to a £1.4bn provision in the first quarter of 2020.  This is disappointing since the improvement in Lloyds Bank’s health is not because of improved business, but because it think it is now more likely to be repaid loans than before. But I think even just this fact is a positive, considering the economic slump recently seen in the UK and the fact that we are still not past the pandemic.  #2. Positive outlook: The bank also sounds quite bullish in its outlook. It expects lower operating costs, which is positive for future earnings. It also expects better asset quality, which is in line with its optimistic stance on bad debts now.  #3. Supportive economy: Lloyds Bank’s bullish outlook is based on a robust economic outlook. In its own projections, it expects the UK economy to grow by 5% in 2021 and 2022 as the base case, which is encouraging. This should help in a pick up in loans, an improvement in interest income, and a better bottom line, without the help of impairment charges. The downside to the FTSE 100 stock However, I think downsides to the Lloyds Bank share price need to be considered too. Even though I think impairments are a valid reason for a profits boost, I looked at the bank’s performance before these were factored in. To do this, the trading surplus was considered, which is the net income less costs. The number comes in at £1.7bn, which is actually 12% less than during the year before. It is still 21% higher than last quarter, to be fair. But overall, the earnings story looks less impressive by this measure.  Also, the bank says nothing material on dividends, a big reason the Lloyds Bank share was attractive earlier.  My verdict I would wait for another quarter to really know how things look for the share and indeed, the UK economy.  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 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? 2 UK penny stocks I’d consider picking now Manika Premsingh 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 is headed back to 50p. Would I buy it? appeared first on The Motley Fool UK.
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  27. The Lloyds share price: 2 reasons I’m keen right now, but 2 big risks I’d note (11/02/2021 - The Motley Fool UK)
    The Lloyds Banking Group (LSE: LLOY) share price has performed well over the past week. In fact, it’s up 10.4%, making it the best performer over this period in the FTSE 100. Unfortunately, if we expand the time horizon, the share is still down 34% over a one-year period. I’d look to buy the share for several reasons, but am conscious of some risks. A better outlook My first reason isn’t particularly technical in nature. Simply put, I think the outlook for the bank (and therefore the Lloyds share price) is much better than last year. The UK managed to avoid a no-deal Brexit. An agreement on financial services is due in coming months. The UK has vaccinated over 13m people against Covid-19. The UK Government is continuing to provide generous fiscal support to try and boost the economy. All of the above are positives for companies trading in the UK. Lloyds is one of these companies, and so is feeling the benefits of this via a short-term move higher in the share price. This isn’t particularly company-specific, but the wider environment is certainly helping. The second reason I like the Lloyds share price is due to the potential dividend resumption. The Bank of England has removed guidance urging banks not to pay dividends. Lloyds returned to a profit of £1bn in Q3, with a loan-to-deposit ratio of 98%. It means it has the liquidity to pay out a potential dividend. Downside risks for the Lloyds share price One big risk I’d note is the gradual reduction in the net interest margin. In the Q3 update, Lloyds specifically flagged this up as a reason why group income was down 17%. The net interest margin stands at 2.42%. This is the difference between the rate the bank lends out at versus the interest it receives. This margin has been decreasing, as the UK base rate has been cut. It takes time for the difference to filter through, and so this move lower is likely going to continue through 2021. There isn’t much the bank can do on this, and so it could be a negative drag on the share price that I should be aware of. The second risk is the delayed impact on finances and loans from Covid-19. The bank has set aside large provisions for bad debt during 2020. Some £4.1bn through to Q3 has been reserved, and Lloyds says it’s a realistic level given “no significant change in economic outlook”. As discussed above, the outlook could be rosy this year. But I think the drag from the pandemic might not be fully appreciated. Consumers and businesses are being supported by furlough cash and other fiscal measures that will stop at some point. In this case, there could be a rise in loan defaults that isn’t currently taken into account by Lloyds or the share price. Overall, I’m looking to buy back into the Lloyds share price shortly, acknowledging the potential risks. 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 UK share investing: why I’d ignore Lloyds and buy these 2 cheap FTSE 100 shares Lloyds’ share price: here’s what concerns me The Lloyds share price is recovering but here’s why I won’t buy back in Why I’d ignore Lloyds and buy other cheap UK shares for my ISA! Lloyds share price: why this FTSE 100 bank is on my February watchlist 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 The Lloyds share price: 2 reasons I’m keen right now, but 2 big risks I’d note appeared first on The Motley Fool UK.
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  28. The Lloyds share price is up 60% in a year! And I still think it’s good value (14/05/2021 - The Motley Fool UK)
    I’m delighted to see the Lloyds Banking Group (LSE: LLOY) share price stage such a strong recovery. I’ve previously hailed the FTSE 100 stock a bargain, but it’s also made me nervous and some days I wouldn’t have touched it at all. In April last year, I said the Lloyds share price looked like an unmissable bargain, trading below 30p, but you’d need nerves of steel to buy it. It now stands at 46p, so anybody who rose to the challenge will have been amply rewarded. Yet my ambivalence continued. In October, just before November’s vaccine breakthroughs, I noted that the Lloyds share price had lost 95% of its value since peaking at 591p just before the financial crisis. Despite that, it remained the UK’s most traded stock and I wondered if Britons had lost their minds over it. Me included. This FTSE 100 stock is tempting The Lloyds share price was hammered by the pandemic, through no fault of its own. Big banks are hardwired into the wider economy. So when the government shut down the economy to contain Covid, banking stocks crashed. Unlike the financial crisis, this time the banks aren’t to blame. This recession is government mandated. Officials also mandated that banks stop paying investors dividends, a dictat now rescinded. The Bank of England also slashed interest rates to 0.1% to bail out the economy, but this destroyed net interest margins, the difference between what banks pay to savers and charge borrowers. The Lloyds share price was also hit by fears of rising debts and impairments.  Then came those vaccines and the great Lloyds share price recovery began. It’s been given a further shot in the arm by the end of Brexit uncertainty. The bank’s heavy exposure to the underperforming UK economy was seen as a weakness. Thanks to the nation’s vaccine success, and easing of Brexit tensions, this is now seen as a strength. The Lloyds share price looks good value With the UK opening up, the Lloyd’s share price has been on a tear. The big worry now is that the reopening may be threatened by the new Indian variant. While I believe we should be able to contain it, due to our vaccines and efficient genome tracing, there’s no guarantee. I’m also worried that the housing market may be overheating. A crash would hit all the banks, but especially Halifax-owner Lloyds. Inflation fears are a double-edged sword. If it forces up interest rates that will slow the recovery. But this will also allow Lloyds to increase net margins. Despite these concerns, the Lloyds share price still looks like a bargain to me, trading at 7.8 times forward earnings and with a price-to-book ratio of 0.7. It also offers a projected yield of 4.4%, covered 2.9 times by forward earnings. I’d buy with the aim of holding for the long term, and reinvesting all my dividends for growth. This also grabs me. 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 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 Lloyds’ share price is rising. Should I buy today? As the Lloyds share price stays cheap, I’d invest £5k Harvey Jones 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 is up 60% in a year! And I still think it’s good value appeared first on The Motley Fool UK.
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  29. The Lloyds share price is up 76% in six months. Am I too late to buy? (29/03/2021 - The Motley Fool UK)
    The Lloyds (LSE: LLOY) share price has soared 76% from a low of 23.98p just six months ago. Nevertheless, at a current 42.26p, the price remains well below its pre-pandemic level of over 60p in early 2020. Am I too late to buy? Or can the shares continue their recovery? Here, I’ll discuss how my view of Lloyds has changed over the last decade, and give my take on the upside potential and downside risk at the current share price. Lloyds and the economic cycle Banks’ profits wax and wane through the economic cycle. Their valuations do too — and in a broadly predictable manner. On this score, price/tangible net asset value (P/TNAV) is a useful measure. The chart below shows the highest P/TNAV Lloyds was rated at by the market in each quarter, from the end of 2013 to the first quarter of the current year. In early 2014, Lloyds’ P/TNAV reached 1.7. This turned out to be the bank’s peak valuation in the cycle between the 2008/9 recession and last year’s pandemic recession. From 2014, investors became increasingly unwilling to pay as much for Lloyds’ assets. Yet the bank’s profits were rising and dividends were back on the agenda. So, what was going on? The UK has suffered eight recessions across the eight decades since World War II. Five years after the 2008/9 recession, Lloyds’ declining P/TNAV reflected the market beginning to price-in the next economic downturn. Value strategy With highly cyclical stocks like Lloyds, I favour a value approach over long-term buy-and-hold. That’s to say, I favour buying when the P/TNAV is around its cyclical low and selling before the market starts pricing-in the next recession. In the cycle we’ve just experienced, Lloyds’ P/TNAV high of 1.7 in 2014 was markedly lower than in the previous cycle. Meanwhile, its 2020 P/TNAV low — not shown on the chart, but 0.46 — was higher than the low of the 2008/09 recession. I was looking for a P/TNAV in the 0.33 area for Lloyds last year. In hindsight, I think I was too greedy. I reckon the UK’s post-financial-crisis banking reforms — countercyclical capital buffers and so on — put something of a cushion under the P/TNAV low. I also now reckon the reforms mean Lloyds’ 1.7 P/TNAV high in the last cycle is probably a new normal too. Lloyds share price and P/TNAV today In future, I think my value play will be to buy Lloyds when its P/TNAV is around 0.5 and sell at around 1.5. But where does this leave me now? Lloyds’ P/TNAV is 0.81 at the current share price of 42.26p. If the economy is in a sustainable recovery, I could still enjoy some very decent returns from Lloyds by buying the shares at today’s price. Set against this is the risk of a double-dip recession. The economy could slump when the government winds down financial support for people and businesses. Having already missed a significant expansion in Lloyds’ P/TNAV, I think it may be a little late for me to buy, in terms of risk-managing my value strategy. If I’d taken the plunge last year, I’d have locked in a good margin of safety and would see the stock as a hold right now. As it is, I may have to wait for the next economic cycle to play out, unless a double-dip recession provides me with a buying opportunity. 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 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 The Lloyds share price is rising: should I buy now? Why I’d ignore the Lloyds share price and buy this cheap UK share right now Will the Lloyds share price recover in 2021? G A Chester 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 is up 76% in six months. Am I too late to buy? appeared first on The Motley Fool UK.
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  30. I’m avoiding the Lloyds share price. I prefer this 5% dividend yield stock instead! (15/02/2021 - The Motley Fool UK)
    Lloyds Banking Group (LSE:LLOY) has had a year to forget. Lloyds shares are on my avoid list for the foreseeable future right now. Instead, I am looking at other options that could make me a passive income.  Can the Lloyds share price recover? LLOY’s performance on the FTSE 100 over the past 12 months has been poor. Across the 100 incumbents, the Lloyds share price is close to the bottom based on performance over the past 12 months. LLOY has lost over 30% of its share price value in the past 12 months. Since the first day of trading in January, it has lost over 35%. Shares plummeted to a low of 23p per share back in September. As I write this, the Lloyds share price is up nearly 9% in February alone. This bounce could be attributed to the Covid-19 vaccine rollout. There is an argument for LLOY to be a great contrarian investment. After all, LLOY still boasts over 30m customers, which means people still trust them with their money. In addition to that, it possesses a fairly decent balance sheet which should see it through current murky waters. If and when an economic recovery does occur, LLOY is in a position to benefit. But given the economic uncertainty we’re facing, I do not see the Lloyds share price as a contrarian investment and will avoid it for now. Passive income opportunity I often look for dividend stocks with a healthy yield that can make me a passive income. A stock I really like right now is PRS REIT (LSE:PRSR). A real estate investment trust (REIT) is a company that owns, and in most cases operates, income-producing real estate. PRSR is “the UK’s first quoted real estate investment trust to focus on high-quality, new build family homes for the private rental market”. Unlike the Lloyds share price, the PRSR share price represents an opportunity to me right now. It is currently at a yearly high of 88p per share. Since a market crash low of 60p per share, it has recovered over 45% of its share price value. PRSR can capitalise on the demand of rental properties currently outweighing supply, which is driving tenant costs higher. Zoopla recently reported rents increased over 2% in the last three months of 2020. City analysts predict a further annual dividend growth at PRSR meaning it carries a juicy dividend yield of over 5% to the fiscal year ends of June 2021 and 2022. This could be a great addition to my investment portfolio for its passive income. Risk and reward I have invested in buy-to-let in the past which has cost me a lot of money up front and additional running costs too. I have learnt from that and now prefer investing in stock such as PRSR. There are risks involved of course. If the economy begins to recover, more people will look to move away from renting and buy their own homes. In addition to that, the return of lower deposit mortgages could have a negative effect too. Right now, I believe PRSR offers a juicy yield and is a tempting stock to invest in. I would avoid the Lloyds share price and monitor events. Here is another dividend stock I really like to make me a passive income. 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 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 UK stock investing: 2 of the best dividend shares to buy right now Jabran Khan has no position in any shares mentioned. 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’m avoiding the Lloyds share price. I prefer this 5% dividend yield stock instead! appeared first on The Motley Fool UK.
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  31. I was right about the Lloyds share price! Here’s what I’d do now (11/04/2021 - The Motley Fool UK)
    Around this time last year, I asked if it was time to buy shares in Lloyds (LSE: LLOY) considering the bank’s then low price.  I determined that while the Lloyds share price looked cheap, its outlook is far from clear as the pandemic laid waste to the UK economy. I concluded that long-term investors might benefit from buying the bank at depressed levels, but it certainly wasn’t suitable for all. As it turns out, I was on the money. The stock has increased in value by 36% in the past 12 months. However, it has been a rough journey. Between the beginning of April last year and the middle of September, the stock lost a quarter of its value. Despite the bank’s incredibly positive performance over the past 12 months, I would still buy the shares today. The outlook for the Lloyds share price Now we seem to be through the worst of the coronavirus pandemic, the outlook for the UK banking sector is looking up.  While all lenders are still expecting to write off billions of pounds in loans thanks to the crisis, it doesn’t look as if losses will be anywhere near as bad as worst-case estimates. That’s great news for lenders like Lloyds, which can now focus on returning to growth and boosting their lending capacity.  Unfortunately, the one hangover from the crisis that is unlikely to go away any time soon is low interest rates. When interest rates rise, banks can earn more on the money they lend to borrowers. With interest rates set to remain at record lows for the foreseeable future, this suggests Lloyds and its peers will have to find other ways of making money.  This issue could weigh on the Lloyds share price for years.  On this front, the group has made significant progress over the past few years. Management has been building out a wealth management division and bought credit card provider MBNA.  Overall, I think these different business lines will help Lloyds make the most of the UK economic recovery and improving consumer confidence over the next few months and years. Risks ahead I think the Lloyds share price has a bright future, but I don’t think it will be plain sailing for the group from here on out.  As noted above, low interest rates will remain a significant headwind for some time. High costs and increasing regulatory demands may also restrict profitability and growth. The pandemic has also alerted consumers to the gulf in technology between large lenders such as Lloyds and smaller challenger banks such as Starling. Lloyds will need to invest more in its technology to catch up to these challengers, or it could end up losing a significant number of customers. Still, despite the risks and challenges the group faces, I continue to believe the Lloyds share price is undervalued and has enormous potential. That’s why I would buy the stock for my portfolio today.  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 Why I think Lloyds’ share price could return to 60p 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 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 I was right about the Lloyds share price! Here’s what I’d do now appeared first on The Motley Fool UK.
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  32. 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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  33. As the Lloyds share price rises, I’d still consider buying (30/04/2021 - The Motley Fool UK)
    Lloyds (LSE: LLOY) shareholders have had a good week. The Lloyds share price moved up a few pence after a first-quarter trading update on Wednesday was well received by the City. It’s up 41% over the past year. Here I’ll explain why the statement caused excitement and share what I plan to do next about the Lloyds share price. Growth drivers for the Lloyds share price There were several reasons the results went down well. Let’s focus on three. First, the company unwound some of its bad loan provisions from last year. This is money the bank had put aside in anticipation of possible borrower defaults. If it isn’t used, it can be unwound. That’s like taking cash out of my wallet and putting it on the mantelpiece to pay a bill – only to discover that the bill is less than expected. I can put some of the cash back in my wallet. Lloyds released £336m of such provisions. In the equivalent quarter last year, at the onset of the pandemic, it took a hit of £1.3bn making such provisions. I see this as good news for the share price as it suggests a more benign trading environment than the bank previously feared. Profit jump A second potential growth driver for the Lloyds share price from the statement was quarterly profit. That stood at close to £1.8bn before tax. That’s more-than-quadrupled from the same period last year, when profit stood at £400m. It largely reflects the bad loan provision impact I discussed above. However, I see the headline profit as a possible growth driver for the shares. It reminds investors that while Lloyds may be the only penny share in the FTSE 100, it is able to generate a profit on such a massive scale in a single quarter. I think that reiterates a fundamental strength of the business. Its focused model of mainstream business and retail banking centred on the UK has a proven ability to turn profits. Dividend prospects A third positive aspect of the trading statement in my opinion was the company’s comment on dividends. Lloyds said that it is “accruing dividends with intention to resume [a] progressive and sustainable ordinary dividend policy”. In other words, it has continued to save money while its dividend level is constrained by regulatory requirements. There is no guarantee, it could end up paying these excess funds out as a special dividend, but the news was still good on a “progressive” dividend payment. I like blue-chip shares with attractive dividend yields. Lloyds share price risks However, there are risks, even if the Lloyds share price seems attractive. The dividends may not end up being progressive and there is no guarantee of future dividends at all. As we saw in the pandemic, the bank could be prohibited from paying dividends by its regulators. The company’s fortunes are also closely tied to those of the UK economy. That could be a risk in the event of any economic downturn. My Lloyds action plan The trading statement highlights some of the reasons I think the company has a stronger future ahead and why I find the current Lloyds share price attractive. Plus, I still think its shares have further to rise. More good news later in the year could drive the shares higher. I’m currently considering buying more Lloyds shares for my portfolio now. 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 up again. Should I buy some more? 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? christopherruane 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 As the Lloyds share price rises, I’d still consider buying appeared first on The Motley Fool UK.
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  34. 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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  35. 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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  36. 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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  37. 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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  38. Will the Lloyds share price hit 60p this year? (12/05/2021 - The Motley Fool UK)
    Shares in Lloyds (UK: LLOY) are already up by a third this year. The Lloyds share price has put on 55% over the past 12 months. Can it hit 60p this year? Below I explore reasons it could – along with some risks that may hold it back. Why the Lloyds share price is rising Why has the Lloyds share price been moving up lately? Like other UK banks, the lender came out of last year’s financial crash in better shape than many analysts expected. It booked large provisions for possible loan defaults, but recently it has released some of those provisions. The hot UK property market is another reason the bank’s shares are moving up. With a strong focus on its home market, Lloyds is highly exposed to UK housing. Ongoing strength in property sales bodes well for the bank’s outlook. Additionally, the bank has restarted dividends.  Possible headwinds for the Lloyds share price But there are also concerns which could help push the Lloyds share price down again. One is the economy. So far the economic recovery has been strong and the property market is buoyant. However, no one has a crystal ball when it comes to economic performance. Any housing downturn could lead to default rates rising again. A lot of investors like myself are hoping Lloyds will raise its dividend as soon as it can. The bank has indicated that it plans to return to a progressive dividend policy. But for now the dividend remains constrained by regulatory requirements. I think uncertainty about the future dividend and a lower payout level compared to several years ago are acting as brakes on the Lloyds share price. Can the Lloyds share price hit 60p? To hit 60p this year, the Lloyds share price would need to rise around 30%. That is a heady increase – but the shares have already risen by that much this year. I think they could do the same again. I see a number of potential drivers to help push the price upwards. For example, the company’s current share price does not even match its tangible net assets. They were reported in last month’s quarterly results as 52.4p per share. The company has been accruing dividends and at some point it will likely do something with this money. Even if it does not pay it out to shareholders, the cash pile is an asset that should help bolster the company’s value. The yield is only 1.2% for now. However, the company has said it plans to resume its dividend programme “at a higher level than 2020”. Risks If the bull case above is right, I do think the Lloyds share price could hit 60p this year. But there is no guarantee of that. While a new chief executive settles in, the bank’s performance could take a turn for the worse. Meanwhile, the shares have already climbed a lot. That suggests that many investors have factored in a lot of the positive investment case. That could mean that it will be harder for the Lloyds share price to keep climbing in the absence of strong positive news flow. My plan I continue to hold Lloyds and look forward to receiving its dividend on 25 May. I am considering adding more to my portfolio.  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 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 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? christopherruane 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 Will the Lloyds share price hit 60p this year? appeared first on The Motley Fool UK.
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  39. 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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  40. The Lloyds share price spiked to 41p before falling today! Would I buy LLOY now? (24/02/2021 - The Motley Fool UK)
    After years and years of share-price declines, could the tide finally be turning for Lloyds Banking Group (LSE: LLOY) and its unloved stock? And could the Lloyds share price get past 50p and reach three figures again? Let’s take a look at today’s news for clues. Lloyds releases its 2020 results. They’re not so bad Today (Wednesday) saw the Black Horse bank unveil its full-year results for 2020. Given that the world is still battling a global pandemic, they’re not as bad as feared. As a result, the Lloyds share price spiked upwards this morning, before sliding back. Being the UK’s largest retail lender in the biggest-ever recession is obviously not ideal circumstances for Lloyds. With over 26m customers, Lloyds has heavy exposure to higher bad debts and loan losses from consumers and businesses. But these impairments totalled a mere £128m in the fourth quarter. Clearly, borrowers are still paying their debts. Thanks to this steep fall in loan-loss provisions, Lloyds actually made a profit in 2020. Yet, as I write, the Lloyds share price now trades fractionally down on the day. In 2020, loan losses at Lloyds totalled £4.2bn. These reserves crashed Lloyds’ pre-tax profit by over seven-tenths (72%) to £1.2bn. Still, this means that Lloyds averaged a monthly profit of £100m in the worst British economy in history. Earnings per share collapsed by two-thirds (66%) to 1.2p. Thanks to this profit, and with approval from the UK banking regulator, Lloyds was able to reinstate its cancelled dividend. It’s only 0.57p a share, but that’s the maximum allowed by the Bank of England at the moment. This equates to just short of a 1.5% dividend yield, based on the current Lloyds share price of 39.06p. At least that’s a start. Despite the economic ravages of Covid-19, the Lloyds balance sheet is in very good shape. Core tier one equity (one measure of financial strength) rose again, this time to 16.2% of risk-weighted assets. This is way above the regulatory minimum laid down by regulations. Also, Lloyds’ net interest margin (NIM) was 2.46% — pretty solid, given the circumstances. Yet the Lloyds share price failed to hold onto earlier gains, spiking to 41p after the market opened, before dropping back by 2p. The Lloyds share price should benefit from recovery In 2020, the Black Horse could barely trot, hobbled by Covid-19 restrictions. But when this big beast starts galloping again, this could inject new life into the Lloyds share price. Of course, if the coronavirus crisis worsens or lingers too long, this spells bad news for British banks. But with mass vaccinations rolling out rapidly across the UK, this gives me cause for optimism. Today, with the Lloyds share price hovering just above 39p, this values this British institution at £27.8bn. That’s a very modest price tag for a very big bank. Right now, Lloyds shares are bang in the middle of their 52-week range between 23.59p on 22 September 2020 and 54.38p on 24 February 2020. In addition, Lloyds is valued at around half of its net tangible book value (0.5 x NTBV). Summing up, Lloyds shares look cheap to me today, assuming that all goes well in the second half of 2021. I might even have to buy some Lloyds stock for my family’s income portfolio! 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 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 Lloyds’ share price could make it one of the best dividend shares to buy now 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 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 spiked to 41p before falling today! Would I buy LLOY now? appeared first on The Motley Fool UK.
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  41. The Lloyds share price still looks cheap to me! I’d buy it today in an ISA (26/03/2021 - The Motley Fool UK)
    Trading at just over 40p, the Lloyds Banking Group (LSE: LLOY) share price still looks like a bargain to me. I say ‘still’ because the FTSE 100 bank has been on a rip-roaring run lately, rising 70% in the last six months. Despite this, I continue to see a great buying opportunity here. The Lloyds share price has taken such a beating over the last decade that it remains inexpensive, despite its rapid growth surge in recent months. That’s why I’d buy it in a Stocks and Shares ISA today. Measured over five years, the stock is down 40%. It actually trades a third lower than 10 years ago, when the Lloyds share price topped 60p. The trauma of the financial crisis has cast a long shadow, and the pandemic has made matters worse. Top FTSE 100 recovery stock Lately, investors have been looking to the post-Covid future, with growing optimism. The big banks were hit hard by last year’s lockdowns, as economic activity stalled. The financial sector was one of the the FTSE 100′s worst performers, along with oil stocks. I think that makes it a tempting way to play the recovery, once vaccines do their work. The big banks have made massive provisions for debt impairments. Thanks to government support, such as furlough and other measures including payment holidays, customers may not be as hard-hit as the banks originally anticipated. If the economy bounces back strongly, the Lloyds balance sheet and share price could look a lot healthier. Lloyds trades at a bargain 10.2 times forward earnings. Its price-to-book value of 0.6 is also tempting, well below the 1.0 generally considered fair value. The Lloyds share price looks good value I think this is a good time to buy stocks that will pay attractive dividends. Lloyds cut shareholder payouts last year, but restored them in February. Brokers now forecast a yield of 3.9%. Better still, that’s covered 2.5 times by earnings. In the longer run, I’d anticipate income of 5-6% a year. Many analysts have warned that inflation could sweep the world, once people are released from lockdowns and start spending their pent-up savings. Bond yields are rising in anticipation, and that’s good news for the banks. It should help them increase their net interest margins, the difference between what they pay depositors and charge borrowers. Again, this would spell good news for the Lloyds share price. There are risks, inevitably. First, my rosy economic scenario may not come to pass, due to vaccine problems or mutant Covid strains. After years of retrenchment, Lloyds is now a shrunken entity focused on the UK, leaving it exposed to domestic troubles. As the UK’s biggest mortgage lender, it could suffer if the current housing boom goes into reverse. The share price has disappointed for years. That wouldn’t stop me from adding Lloyds to my ISA portfolio at today’s low share price. It remains a top income stock, and I’d aim to hold for the long term. To retirement and beyond. I would also check out this. 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 rising: should I buy now? Why I’d ignore the Lloyds share price and buy this cheap UK share right now Will the Lloyds share price recover in 2021? The Lloyds share price: what have I learned from it? Lloyds share price forecast: is 50p obtainable this year? Harvey Jones 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 still looks cheap to me! I’d buy it today in an ISA appeared first on The Motley Fool UK.
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  42. 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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  43. Would I buy these rising FTSE 100 and FTSE 250 penny stocks today? (12/04/2021 - The Motley Fool UK)
    The FTSE 100 and FTSE 250 indexes, which includes some of the biggest British and international companies, do not have too many penny stocks. Penny stocks are those with a share price of less than £1. But there are some.  Until recently there were three in the FTSE 100 index alone, but Rolls-Royce breached that level in February. And energy provider Centrica (LSE: CNA) rolled out of the FTSE 100 index to become part of the FTSE 250 in mid-2020.  Which leaves Lloyds Bank as the only penny stock among the FTSE 100 constituents.  Here I explore both Centrica and Lloyds Bank in greater detail.  Why penny stocks are attractive In principle, they are attractive because I can own a piece of these large companies at dirt-cheap prices. However, I am interested in knowing if the share price can continue to rise fast before deciding whether they meet the cut as an investment in my portfolio. If they cannot, I am better off investing in far fewer shares of a fast growing FTSE 100 stock than many more in penny stocks that are going nowhere.  And that is the key question I am looking to answer – can their share price continue to grow? If not, then they are best avoided.  Centrica makes big gains First, let us look at Centrica. The FTSE 250 energy provider’s share price has almost doubled in the past year. In today’s trading alone, its share price is up 2.6% as I write, making it one of the biggest index gainers today.  Centrica’s recent full-year results are far from the worst we have seen this year. Its operating profits are down by 31% in 2020 from the year before. But it still earned a decent £447m in absolute numbers. Its net debt too, is down by 13%, which is a notable figure at a time when many companies have racked up huge debts.  The company is in the process of restructuring, however, which will take its time to complete. It is also uncertain about the next year, and refrains from guidance.  While there is merit to the stock, I am just not sure if there is much more steam left in it for now. It is on my radar, but I am not buying it now.  Better times ahead for the Lloyds Bank share price Lloyds Bank has not seen the kind of share price increase that Centrica has. But it too has had good going so far in 2021. As I write, the Lloyds Bank share price is up 1.6% in today’s trading.  The bank’s business is closely linked to the economy, which is widely expected to come back with a bang this year. Its dividend can rise further too. But there are risks too, which among other things, include a share price that has run-up a fair bit already.  I am more positive on Lloyds Bank than Centrica with respect to share price rise potential, but I am watching both for now, not buying them.  The high-calibre small-cap stock flying under the City’s radar Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity… You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy. And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline. Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report. But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! More reading The Centrica share price is up 20% this year. Should I buy more? 1 penny stock buy I’d pick for my Stocks and Shares ISA Are these the best FTSE 250 shares to buy before the ISA deadline? Manika Premsingh 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 Would I buy these rising FTSE 100 and FTSE 250 penny stocks today? appeared first on The Motley Fool UK.
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  44. Lloyds share price: will it rise if the dividend makes a comeback? (20/02/2021 - The Motley Fool UK)
    This week two FTSE 100 banks — Barclays and NatWest reinstated their dividends along with their earnings releases. I think this raises expectations that Lloyds Bank (LSE: LLOY) will do the same when its financial results come in next week. The Lloyds share price took quite the fall last year when it stopped paying dividends.  Why did Lloyds Bank stop paying dividends? Lloyds Bank was hardly the only FTSE 100 biggie to stop paying dividends. As the pandemic spread, many companies foresaw (and in many cases rightly so) a sharp downturn in business. This led them to stop dividend payouts.  For LLOY, and indeed all other banks, however the situation was a bit different. The Bank of England directed them to stop dividends as a precaution. Banking sector health is crucial to the functioning of the entire economy, and the financial crisis of 2008 has taught invaluable lessons in keeping them healthy. As a result, UK’s banks couldn’t reinstate dividends at will. It’s only after the BoE lifted the restriction at the end of 2020 that they have been able to do so.  Will Lloyds Bank reinstate dividends too? Other banks and other FTSE 100 companies are getting back to paying dividends now. This alone is reason for LLOY to get back to doing so as well, considering that it’s probably been one of the more attractive features of the stock. A look at the long-term Lloyds share price chart makes it clear that it isn’t a growth stock. I would think that LLOY will bear this in mind when making its earnings announcement.  Should I buy the Lloyds Bank share? Which brings me to the million dollar question — should I buy the Lloyds Bank share. It’s an important question going by the stock’s popularity, in terms of daily trading volumes. I’d consider the three points below before buying the stock: Can the Lloyds share price rise from here? There’s no doubt that it has improved vastly since the lowest point it saw in September last year. It’s almost at double those levels. It is still below its pre-pandemic levels though, suggesting it can rise.  Can Brexit uncertainty play on the stock? With no deal in place yet on financial services, the sector is stuck in limbo. Uncertainty isn’t good for the Lloyd’s share price, I would imagine.  How much will be its dividend payout? Even if it does start paying dividends again, will it be on par with earlier levels? If the dividend yield turns out to be low, it may not be worthwhile for the investor.  The upshot There are clearly risks to the Lloyds share price. Lack of Brexit clarity and a slow economy being among them. On the other hand, a continued stock market rally, a potential dividend payout or a high actual payout and expectations of the good UK economic growth in 2021 work in its favour.  I’m going to wait for its results to see its performance, its dividends’ stance, and its outlook before making a call. 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 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? Lloyds share price: should I buy in February 2021? Manika Premsingh 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 Lloyds share price: will it rise if the dividend makes a comeback? appeared first on The Motley Fool UK.
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  45. 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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  46. The Lloyds share price keeps falling! Should I buy the stock now? (07/03/2021 - The Motley Fool UK)
    The Lloyds (LSE: LLOY) share price has been a pretty terrible investment to own over the long run. There have been some periods in the past decade where the stock has put in a positive performance. But over the past 10 years, shares in the company have produced an annual total return of -1.5%. Over the same timeframe, the FTSE 100 has returned 5% per annum, including dividends.  Unfortunately, the stock’s performance isn’t any better when we look at the last five years or 12-month periods. The stock has lost around 43% of its value over the past five years. Over the past year, it is off approximately 15%.  These figures suggest the bank has consistently disappointed investors. Nevertheless, past performance should never be used as a guide to future potential. Just because the stock has been a poor investment over the past decade doesn’t mean it’ll be a bad investment over the next 10 years.  With that in mind, I’ve been taking a closer look at the Lloyds share price, with the view to adding the stock to my portfolio.  Improving outlook Lloyds’ problems over the past year have been well documented. As one of the UK’s largest banks, the lender’s fortunes are tied to those of the UK economy. When the economy struggles, Lloyds struggles as well. Last year, the economy posted one of the largest contractions on record. The lender is set to report billions of pounds in losses as a result.  This isn’t the only challenge the group faces. Ultra-low interest rates have severely impacted its profit margins. It doesn’t look as if the Bank of England will increase interest rates anytime soon, which suggests this pressure will last for some time.  So, those are the challenges the bank currently faces. But what about its opportunities? Lloyds share price opportunities   I believe these are twofold. If the UK economy rebounds over the next 12-24 months, the lender could see a substantial increase in demand for loans and other products, which would be great news for its bottom line. As well as this potential, Lloyds is also trying to diversify. It’s been expanding into wealth management and other products, as well as streamlining its existing bank operation to reduce costs. These initiatives may help it navigate the low-interest-rate environment.  I believe these opportunities could help the company return to growth in 2021 and 2022. This may mean the Lloyds share price finally starts to produce a positive return for investors. The corporation has its challenges but, right now, it looks to me as if there’s a lot of negativity already factored into the share price. If the lender can overcome these challenges, I think investor sentiment towards the business could improve dramatically.  Of course, this is only a rough guide. There’s no guarantee investor sentiment will improve if the company can return to growth. Nevertheless, despite Lloyds’ poor track record, I’d buy the stock for my portfolio today.  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 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 Should I buy Lloyds Bank stock for my ISA or other cheap UK shares? The Lloyds share price: here’s what I expect next The Lloyds share price: what do the latest results mean? 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 The Lloyds share price keeps falling! Should I buy the stock now? appeared first on The Motley Fool UK.
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  47. Forget the Lloyds share price. These FTSE 100 shares can make me a passive income (03/05/2021 - The Motley Fool UK)
    Lloyds Banking Group (LSE:LLOY) has had its fair share of issues recently. Despite a better couple of months for the Lloyds share price, I would still avoid it and focus on FTSE 100 dividend shares to help make me a passive income. Why I’m avoiding the Lloyds share price Lloyds share price has risen nearly 30% in value during the past three months. I believe this is closely linked to positive updates related to the British economy. The FTSE 100 bank’s fortunes are tied to a strong economy in my opinion. I like to invest for the long term and this is where Lloyds falls down for me. I believe Lloyds will be affected by low interest rates dictated by the Bank of England. These must rise for Lloyds and other banks to deliver healthy profits. I believe the implications of Covid-19 will affect the economy for a long time too. Closure of businesses, the end of furlough and rising unemployment will bode negatively for it. I also fear for traditional banks due to the rise of challenger banks on the scene. The rise of Monzo, Starling, and Metro Bank will only dent Lloyds profits. For now, the Lloyds share price is a no go for me. Dividends across the FTSE 100 I would rather focus on dividend shares that could help make me a passive income. Dividends were cut across the FTSE 100 when the markets crashed and companies scrambled to conserve cash. With reopening on the horizon, there are some juicy dividend payers out there that represent a better option for me than the Lloyds share price.  FTSE 100 tobacco producers Imperial Brands and British American Tobacco stand out. There is definitely an increased focus on investing ethically, so these two tobacco producers may not be everyone’s cup of tea. Imperial Brands offers a dividend yield of close to 10% and British American Tobacco offers just less at 8%. Despite some of the stigma around smoking firms, these two continue to perform well and distribute healthy dividends to investors which is tempting. Don’t expect the reported demise of the tobacco industry to come to fruition any time soon in my opinion. Steel maker Evraz is another FTSE 100 dividend payer I really like. A forecast yield close to 11% makes me sit up and pay attention. The risk with Evraz is the fact that the commodities market is a volatile one, almost as volatile as the Lloyds share price. This has been displayed when Evraz experienced a turbulent time and caused its dividend to be erratic. In addition to Evraz, other commodities firms also carry a high dividend yield. These are Rio Tinto which offers 10% and BHP Group on 7.6%. Year ahead I have pinpointed a few FTSE 100 dividend shares that stand out to me. The few I have identified definitely represent a better investment that the Lloyds share price right now for me. In terms of the year ahead, the banking sector could be about to experience a bounce back in 2021. Analysts predict the traditional banks to bounce back and even offer higher dividends. I think dividend yields will still be low but better than 2020 for sure. Like the Lloyds share price, the Rolls-Royce share price has struggled in the past year. Here’s what I believe may happen over the coming months for Rolls-Royce. 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 rising: here’s what I’d like to do As the Lloyds share price rises, I’d still consider buying The Lloyds share price is up again. Should I buy some more? The Lloyds share price is headed back to 50p. Would I buy it? The Lloyds share price is flying! Should I buy LLOY today? Jabran Khan has no position in any 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 Forget the Lloyds share price. These FTSE 100 shares can make me a passive income appeared first on The Motley Fool UK.
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  48. 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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  49. 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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