EasyJet grounds entire fleet. Should you invest in airline stocks in this market crash?

first_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! As Covid-19 continues to lead countries around the world to place restrictions on international travel, air traffic has dried up. This spells disaster for airline stocks listed in the FTSE 100.As a result, budget airline operator easyJet (LSE: EZJ) took the decision to ground its entire fleet on Monday. Inevitably, the company’s share price took another hit as markets digested the news. This now amounts to around a 60% plummet in the share price since the start of the year.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Other airline stocks such as International Consolidated Airlines Group (LSE: IAG), Ryanair, Wizz Air, and TUI AG have followed a similar path. Does this monumental price decrease signal that now is a good time to buy in?A solemn warningLast week The Financial Times reported that, according to the head of IAG, there’s no guarantee that many European airlines will survive this crisis.Income streams are beginning to dry up and more pressure is being placed on already strained cash flows to ensure survival. Companies will soon be in need of government support. In fact, Virgin Atlantic has already asked the government for a bailout.IATA, the industry association of the world’s airlines, has forecasted revenues will drop to nearly half in 2020. As a result of the unfolding pandemic, governments around the world will be called upon to save their crisis-hit airlines.With that in mind, no investor wants to pile into a company that’s about to go under. It’s for this reason that I’d exercise extreme caution when it comes to investing in airline stocks at the moment.Hope for the futureThe dirt-cheap valuations that the easyJet and IAG are trading on right now is an inviting prospect for value investors.Price-to-earnings ratios are at all-time lows in the FTSE 100 among the airline stocks. EasyJet is trading with a P/E ratio of 6.29, IAG is at 2.71, and Wizz Air at 5.85. This suggests moving forward with caution. But it also reveals that there’s certainly some value there.Last week, easyJet reported £1.65bn in net cash and a $500m revolving credit line. What’s more, in a group statement released last Monday, the company stated that it maintains a strong balance sheet, with no debt refinancing due until 2022.With the group in ongoing discussions with liquidity providers, I think if there’s a way out of this storm, shares in easyJet promise rewarding returns for investors confident enough to stand by the company.As for IAG, I think its high levels of liquidity put it in a stronger position than some of its peers. As of 12 March, the company reported €7.35bn of cash and cash equivalents on its balance sheet. However, nobody can honestly say whether this will suffice given the uncertainty that surrounds the future of air travel.Undoubtedly, the hit to earnings will be ugly for all airlines over the coming months. That said, I believe those companies with healthy balance sheets and strong enough cash flows are in a position to make it out to the other side.If so, expect investors to be rewarded with attractive returns as airline companies set themselves back on track once passenger travel resumes. See all posts by Matthew Dumigan Matthew Dumigan has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the 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. Simply click below to discover how you can take advantage of this. Enter Your Email Address Our 6 ‘Best Buys Now’ Shares EasyJet grounds entire fleet. Should you invest in airline stocks in this market crash?center_img I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Matthew Dumigan | Tuesday, 31st March, 2020 | More on: EZJ IAG “This Stock Could Be Like Buying Amazon in 1997” Image source: Getty Images. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. 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.last_img read more

£2,000 to invest? Here’s my best UK share to buy now!

first_imgSimply click below to discover how you can take advantage of this. Jonathan Smith | Monday, 22nd June, 2020 | More on: JD Our 6 ‘Best Buys Now’ Shares Enter Your Email Address Image source: Getty Images. 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. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. £2,000 to invest? Here’s my best UK share to buy now!center_img When I saw a stock that had doubled in price since March, I was excited. After doing some research, it’s become my best UK share to buy now. After all, stories about doubling your money from investing don’t have to remain in the realm of dubious penny stocks. There are legitimate FTSE 250 and FTSE 100 stocks with high growth potential. Of course, having the ideas is one thing, but you also need the funds to make it a reality. If you have £2,000 liquid to invest at the moment, then read on. Yet even if you have a smaller amount to invest, or soon will have funds, this is relevant to you. Triple-digit returnsThe stock I’m talking about is JD Sports Fashion (LSE: JD). Since the aggressive market sell-off in March led to a share price slump to circa 275p, the stock has rallied hard. It currently trades around 650p, well over a 100% return in three months. So what’s the story here?5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Firstly, some of this return is simply a factor of the broader market bounce-back. In the FTSE 100, only seven out of the 100 constituents have recorded a negative price performance in the past three months. So naturally JD has benefited from investors buying up all kinds of FTSE 100 stocks as they felt the sell-off had been overdone.But to rally over 100% in this period indicates to me that there’s more than just positive sentiment at play here.Covid-19 consolidationJD was recently hit with the news that the buyout of Footasylum was to be blocked. The Competition and Markets Authority (CMA) said that the two firms were very similar, with a survey showing that customers saw either firm as their next best alternative for specific items. JD will appeal the decision. Irrespective of the result, I think the acquisition strategy it is pursuing is key to the recent rally in the share price.In justification of the deal, JD notes that the Covid-19 pandemic has hit Footasylum hard. This is also true of many other sports/outdoors retailers. Even Go Outdoors (owned by JD) is speculated to be heading into administration. So even if the CMA doesn’t overturn its Footasylum decision, there are many other firms for JD to look to buy. Boohoo is currently pursuing such a strategy too.I think this could lead to JD being able to buy up or merge with various smaller retailers in the coming year or so. Given the financial difficulties, it should be able to buy up firms at a discount. In the long term, this could strengthen its position in the marketplace as the largest player. Given that the CMA won’t allow mergers with a very similar competitor, this may force JD to diversify its offering further, buying into firms that operate in an identifiably different part of the sector.Can the JD sports share price rally further?Given the above reasoning, I still think there’s plenty of room for the share price to rally higher. The share price is still 20% lower than where it sat in January, as a rough barometer. With £2,000, this provides a tangible potential of over £400 profit if it bounces back. From there, I think the extent of the rally depends on which firm JD might target to buy, and what discount it’s able to buy it at. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Jonathan Smith and The Motley Fool UK have no position in any of the 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. “This Stock Could Be Like Buying Amazon in 1997” I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. See all posts by Jonathan Smithlast_img read more

These shares have cut their dividends but I think they could come back stronger

first_imgThese shares have cut their dividends but I think they could come back stronger Andy Ross | Monday, 29th June, 2020 | More on: AV BT-A LLOY “This Stock Could Be Like Buying Amazon in 1997” Enter Your Email Address Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! It’s clear investors face challenges when it comes to getting dividends. About half of the FTSE 100’s companies have now cut or suspended shareholder rewards. However, despite the doom and gloom, I think these three shares could come back stronger once conditions return to a more normal state.A banking share forced to cut its dividendsThe first is Lloyds (LSE: LLOY). The share price has fallen nearly 50% over the last six months alone. The shares are now lower than they were five years ago. But the mandated, or strongly encouraged, suspension of bank dividends during the crisis could help Lloyds further strengthen its balance sheet. It already has a tight control on costs and has further scope for digitisation. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…The dividend suspension could also help it to partially offset the expected uptick in bad loans that will result from customers losing jobs and generally being less financially secure.Overall, I think the shares, on a P/E of nine, look too cheap to ignore right now. Yes, interest rates are very low and it’s a difficult time for banks. But I expect Lloyds, with its low costs and relatively simple business model, to come back stronger post-Covid-19.Room for improvement at this FTSE 100 giant Aviva (LSE: AV) is another share that has potential in the long term. The shares are dirt-cheap on a P/E of only a little more than four. Management also took the decision to cut the dividend, which will free up a lot of cash for the group.Again, the operating environment is difficult for Aviva. Back in May it said it expected to pay a net £160m of claims related to the coronavirus shutdown with the majority of payments being in business interruption, travel insurance and commercial lines.The UK’s biggest insurer said the crisis posed challenges to meeting its 2022 targets, warning that second-quarter sales had already been hit.UK insurers have also been ordered to offer payment holidays to customers. It’s clear that regulators are applying a lot of pressure to companies like Aviva and it’s unclear when things might improve.Yet for all these downsides, I do think Aviva can bounce back. Over the long term, I think the business can be made leaner and grow in annuities like rival Legal & General is doing.A riskier FTSE 100 shareMy third share is a more risky one and it’s BT (LSE: BT). It has suspended its dividend for the first time since its 1984 privatisation. The cut was far from unexpected though.It could be argued that management had already tried to delay a cut for too long. Now coronavirus has given it a clear excuse to suspend the dividend. I’m optimistic about the shares because the dividend frees up cash for BT to invest. It should also give it a little more leeway with the regulator, with which, under the previous CEO, it was locking horns.I do expect BT shares to come back stronger. I’m reassured that the professional investors at Merchants Trust think the situation in the telecoms industry is improving. They bought shares back in March, which I think is a good sign. Andy Ross owns shares in Lloyds Banking Group, Merchants Trust and Legal & General. 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. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Our 6 ‘Best Buys Now’ Shares Simply click below to discover how you can take advantage of this. 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. See all posts by Andy Rosslast_img read more

Have £1,000 to invest? Here are two top FTSE 100 stocks I’d buy right now

first_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Image source: Getty Images I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. If you have £1,000 to invest but are struggling to find the right stocks, here are two top FTSE 100 stocks that I think might take your fancy.Informed investingRight now the Informa (LSE: INF) share price looks like a bargain, sitting 45% below where it was a year ago. Why? The coronavirus crisis shut down Informa’s events business and events deliver about 65% of revenues, explaining why the shares are trading at just 456p.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…However, subscription-linked businesses account for 35% of Informa’s revenues and these have continued to trade well. They have provided an anchor for Informa, buying time for its events business to get back on track. Clearly, to get its share price moving upwards, Informa needs to start holding physical events again and it is working hard here. The company is heavily focused on the highest standards of hygiene and safety and that should help in getting permissions from authorities to run events when the time is right. Part of the business is already back in action. This month should see a number of major events held in China. Other markets like the US are further behind. However, events there have been rescheduled, and some will be held digitally. Encouragingly, the amount of rebates requested remains low. Informa’s balance sheet looks healthy following a £1bn equity raise, and so far, the company has not had to ask its debt holders for favours. So there is time for the events business to get going again. Obviously, the quicker the pandemic is dealt with, the faster Informa’s share price will rise, and a coronavirus vaccine would certainly jolt it into life. Its prospects seem good in the long term and 90% of the 20 analysts covering Informa rate it as a buy. Since the share price is so low at present, they reckon investors could make 70%+ over the next 12 months by investing in this top FTSE 100 share. Backing the FTSE 100 GVC Holdings (LSE: GVC) did not suffer as much as Informa did in the market crash. Its shares now trade 19.7% above where they were this time last year, although that is still below their pre-crash highs. Nevertheless, 89% of the 19 analysts covering GVC rate it as a buy, and think its shares could make gains of 50%+ over the next year.GVC bought Ladbrokes Coral in 2018 to form one of the largest sports betting and gaming companies in the world. Gambling revenues dropped by up to 60% when lockdowns started. But they bounced back quickly as sports fixtures started to return in Europe and betting shops reopened in the UK. As a result, GVC’s share price has started to rebound, and revenues should pick up further once spectators start getting back into grounds.Any negatives? The gambling industry has come under fire from governments and regulators, but many of the points raised in a recent report on gambling’s dark side are enshrined as principles in GVC’s safer gambling strategy. I think GVC is ahead of the regulatory curve and should be able to benefit from the continuing industry growth, particularly online.Analysts think it will generate lower revenue and profits in 2020, but 2021 should see healthy growth returning, and pre-crisis-level dividend payments. GVC looks to me like a top FTSE 100 stock to invest in only a month after being readmitted to the index. Enter Your Email Address 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. Our 6 ‘Best Buys Now’ Shares James J. McCombie | Tuesday, 7th July, 2020 | More on: ENT INF center_img “This Stock Could Be Like Buying Amazon in 1997” Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Have £1,000 to invest? Here are two top FTSE 100 stocks I’d buy right now Simply click below to discover how you can take advantage of this. James J. McCombie has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the 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. See all posts by James J. McCombielast_img read more

Why I think the BAE share price is a steal

first_imgWhy I think the BAE share price is a steal Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Our 6 ‘Best Buys Now’ Shares Enter Your Email Address Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! 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. See all posts by Tom Rodgers “This Stock Could Be Like Buying Amazon in 1997”center_img The BAE Systems (LSE:BA) share price is now 28% cheaper than its 2020 peak. And I think the FTSE 100 stalwart could offer me remarkable long-term value at these levels. Let me tell you why. Demand for BAE products remains extremely strong. Given BAE’s size and strength, its sales numbers are mind-bogglingly high. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…On 12 November 2020 for example, BAE announced it had won a £1.2bn contract to engineer components for 38 Eurofighter Typhoon combat aircraft for the German Air Force. Military intelligenceAs well as being a reliable income stream to bolster the BAE share price long term, the military is an important sector because world governments are continually innovating and upgrading their systems. This only allows BAE to sell products consistently year after year. It also means that BAE is able to re-engineer battlefield tech to develop new product lines. Let’s take drones, for example. BAE’s unmanned aerial vehicles were first developed as combat systems with a £185m investment in 2013. That produced the Rolls-Royce engine-powered Taranis drone.Out of that innovation today we have the BAE Systems PHASA-35, an aerial craft that flies in the upper reaches of the earth’s atmosphere and can be used to boost communications networks, help beam 5G to the ground, or aid disaster relief efforts worldwide.It’s not very snappily named, but it is an impressive piece of kit. With a 35-metre wingspan and a solar-powered electric engine, the PHASA-35 can remain in flight for 12 months at a time. And it might sound like sci-fi, but as the BBC reported in November, Germany plans 5G drone trials by 2024.BAE share price futureThe BAE share price is trading at a particularly cheap P/E ratio of 10.3, well below the FTSE 100 average. So now could be a great time for me to buy in for the long term.The company also offers a plump 5% dividend yield, which I really like. I wrote almost exactly 12 months ago that the BAE share price represented the best of UK defence prospects. While the shares have dipped 10% from that point in time, my view has not altered one iota. That’s because the future looks strong. The $2bn buyup of Raytheon’s Airbone Tactical Radios division gives BAE more chance to expand its US division. And the US is one of the world’s largest military spenders. Flying aheadMore than half of the FTSE 100 delayed dividends in the face of Covid-19. And the BAE share price was hit when the defence giant did the same in April. But I saw this as a prudent cost-control measure with all the uncertainty around.However, defence contractors qualified as key workers throughout the pandemic. So orders still flowed throughout the period and factories continued operating. And I believe BAE has seen off the worst of the disruption. A November trading update revealed underlying earnings per share were better than expected. “Demand for our capabilities remains high with order intake ahead of our original pre-Covid planning,” the company noted. So it was no surprise to me when 2019’s 13.8p final dividend returned in full in September. CEO Dr Charles Woodburn also raised the 2020 interim dividend by 4.4% to 9.4p per share. This is due to be paid on 30 November. In an uncertain world, an investment in BAE is an increasingly attractive and sensible option, in my view. It’s on my watch list. Tom Rodgers | Friday, 13th November, 2020 | More on: BA Image source: BAE Systems Simply click below to discover how you can take advantage of this. TomRodgers has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the 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. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.last_img read more

Aston Martin or Rolls-Royce shares? Here’s what I’d do

first_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Dan Peeke | Friday, 20th November, 2020 | More on: AML RR Aston Martin or Rolls-Royce shares? Here’s what I’d do March’s market crash saw the share price of both Aston Martin Holdings (LSE:AML) and Rolls-Royce (LSE:RR) plummet. On the surface, most would connect both companies to the luxury automotive industry. However, while Aston Martin is still manufacturing cars, Rolls-Royce sold that side of its business 40 years ago and has since focused (mostly) on aviation.  Aston Martin SharesSince it was first listed on the London Stock Exchange in October 2018, the Aston Martin share price has dropped by 95% (admittedly, partly due to dilution). My colleague G A Chester is very bearish on the share, saying: “There’s not a cat in hell’s chance the Aston Martin share price will ever return to £19”. That may be so, but now that the company has dropped from 499p at the start of February to its current 80p — which it has roughly maintained since April — is Aston Martin a good investment today?5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Well, relatively new executive chairman Lawrence Stroll seems to think so. His investment fund spent millions on a 25% stake. He has streamlined the company’s operations and announced a plan to target £2bn of revenue by 2025. However, I think there are many reasons to avoid Aston Martin and look at Rolls-Royce shares instead.  The brand is, first and foremost, not currently profitable. Then, even if Stroll’s plan works, AML has to work its way through a mountain of ever-increasing debt, and certain concerned lenders have hit it with a 10.5% interest rate. This doesn’t bode well for shareholders looking for dividend payouts and trying to avoid being diluted further.On top of all of that, Aston Martin has a history of issues that includes major, consistent losses and seven bankruptcies. I think it’s best avoided.Rolls-Royce SharesWhile notable, the Covid-induced price change in Rolls-Royce shares (down 62% between February 2 and April 2) was less dramatic than that of Aston Martin. It’s currently worth around 100p, with its price rising since Covid vaccine developments were announced.An interesting distinction between Rolls-Royce and Aston Martin is the necessity of their services. Cars were still needed during the pandemic, planes (for the most part) weren’t. As the world returns to normal, Rolls-Royce’s business should pick up and hopefully its share price will follow suit. Aston Martin might not experience that to the same degree, although a recovery in the luxury sector would help it. Furthermore, Rolls-Royce CEO, Warren East, has announced a confident recapitalisation plan and a £750m free cash flow target for 2022 onwards. When compared to its current price, this much free cash flow would make for good share value.That said, there are many drawbacks. The company is predicted to make a loss of more than £2.5bn this year, while Edward Sheldon views it as a ‘low-quality’ stock due to a track record of loss and a distinct risk of future financial issues. He also points out that, even though the airline industry returning to normal will help Rolls-Royce shares, we shouldn’t bank on this happening for a good few years.As a result, I wouldn’t be too keen on buying Aston Martin or Rolls-Royce shares right now. However, if I was looking for a long term investment and was okay with a little risk, I’d lean towards Rolls-Royce. 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. Our 6 ‘Best Buys Now’ Shares Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.center_img “This Stock Could Be Like Buying Amazon in 1997” Dan Peeke has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the 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. Simply click below to discover how you can take advantage of this. Enter Your Email Address Image source: Aston Martin See all posts by Dan Peekelast_img read more

2021 dividend forecasts: Lloyds, HSBC, Centrica

first_img Enter Your Email Address Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Image source: Getty Images Our 6 ‘Best Buys Now’ Shares Simply click below to discover how you can take advantage of this. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. “This Stock Could Be Like Buying Amazon in 1997” Alan Oscroft owns shares of Lloyds Banking Group. 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.center_img I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. 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. Alan Oscroft | Thursday, 26th November, 2020 | More on: CNA HSBA LLOY In 2019, the FTSE 100 delivered approximately 4.7% in dividend returns. In 2020, it looks set to be slashed to around 3.2%, though I think that’s still a decent yield. Forecasts are already looking better for 2021, with a yield of around 4.2% on the cards. Today, I’m looking at three stocks I’d buy for dividends in 2021.Banking dividend cutLloyds Banking Group (LSE: LLOY) severely cut its dividend in the early days of the Covid-19 crisis. That was at the behest of the Prudential Regulation Authority, but probably wise anyway. Possibly a handy opportunity for Lloyds too, as I think its rapid dividend progress since emerging from the banking crash was perhaps a bit hasty.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…With the final dividend for 2019 suspended, that year produced a 1.8% yield — down from more than 6% in 2018. And it’s only the dividends that had been keeping me cheerful about my Lloyds shareholding. The current pandemic year looks set to deliver a dividend of only a little over 1% from Lloyds.Analysts are forecast an earnings rebound in 2021, though not quite back to 2019 levels. But a dividend restored to about half of 2018’s pre-cut payment would yield 4.5% on the current share price. That’s only possible because Lloyds shares are down 40% in 2020. But I think it represents a great buying opportunity, and it’s a top-up candidate for me.A 2021 recovery pickI turn now to Centrica (LSE: CNA), whose earnings have been sliding for years. Centrica pared its 2019 dividend to the bone, though I reckon that was seriously overdue. It was another company in trouble, with dividends sliding into uncovered territory. But it stubbornly kept paying, for at least two years too long in my view.The 2020 dividend is set to yield only 1.3% this year. And that’s after Centrica shares have shed almost 80% of their value in five years. The price is down 47% so far in 2020. Still, Centrica bottomed in April and has since climbed 60%.There should be a further earnings slip this year. But analysts finally have an upturn on the cards for 2021. If they have it right, we’ll see a modest uptick in earnings and the reinstatement of a decent dividend. It’ll be a lot less than the old days, but on today’s share price it would yield 4.6%. I rate Centrica a recovery opportunity to keep an eye on.Eastern focusMy third choice is another bank, HSBC Holdings (LSE: HSBA). HSBC is a worldwide giant, with a reach stretching around the world. In recent years it’s been looking a bit cumbersome and a bit over-extended, when many banks are striving to be more lean and streamlined.To rectify that, HSBC has been reducing headcounts and is refocusing on its most profitable home markets in the Far East. Is it a British or European bank? Or is it a Hong Kong bank? Well, the clue’s in the name, and a swing back towards its roots should improve the long-term outlook.The dividend was cut along with the rest, and it’s set to yield around 1.5% this year. But a forecast hike in 2021 would take it to 5.8%. I do wonder if cover of only around 1.5x might be a bit tight during a restructuring phase. But I see a solid long-term future for HSBC dividends, and it joins my candidates for 2021. 2021 dividend forecasts: Lloyds, HSBC, Centrica See all posts by Alan Oscroftlast_img read more

Covid-19 vaccine: 3 top UK shares I’d buy right now

first_imgCovid-19 vaccine: 3 top UK shares I’d buy right now In the past month, not one but three Covid-19 vaccines have shown themselves to be effective against the virus. I think this is extremely positive for UK shares. As such, I’ve been scanning the market for stocks that I think could benefit from the treatment. Here are just three of the firms I’m watching right now. Covid-19 vaccine: 3 top UK sharesPubs are set to be one of the primary beneficiaries of a vaccine. The hospitality sector has been hit hard by the coronavirus crisis, and unfortunately, many pubs have already closed their doors forever.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…However, pubco Fuller Smith & Turner (LSE: FSTA) stands head and shoulders above the competition, in my opinion. The company entered the crisis with a solid balance sheet. Net debt was around £20m compared to property assets of more than £600m. This has helped it weather the crisis. According to its recent results, customers were quick to return to the firm’s establishments when they reopened over the summer. I reckon the same will happen after the second lockdown and in the new year.While one might be able to achieve a higher return owning other UK shares, Fuller’s quick recovery last time and strong balance sheet have convinced me that this business can make it through the crisis in one piece and possibly emerge stronger on the other side. Other operations may not be so lucky. Those with a lot of debt and large rent obligations could struggle if sales do not bounce back and operating costs increase.Growing oil demandAs the global economy recovers from the pandemic, oil and gas demand is expected to recover. I think this should help push the BP (LSE: BP) share price higher. This is one of the worst-performing UK shares in 2020. However, I believe that the worst is now behind the business. The price of oil has risen substantially in recent weeks. BP has also taken an axe to costs, pushing down its cost of production. As well as all of the above, the company has committed to invest billions in renewable energy over the next few years. This initiative should help the corporation reduce its dependence on hydrocarbons going forward. With a mid-single-digit dividend yield on offer as well, I think it’s possible this company could produce high total returns for my portfolio in the years ahead. Global diversificationCruise ship operator Carnival (LSE: CCL) has suffered more than many other UK shares over the past nine months. Luckily, investors have been happy to support the enterprise. The group has raised billions of dollars in debt and new cash to keep the lights on throughout the crisis. With the light starting to show at the end of the tunnel, Carnival can now consider how it’s going to move forward. All indicators suggest customers will return. Bookings have surged since the Covid-19 vaccine news was announced. As such, I’d consider buying the stock at current levels. The firm is past the worst. It hasn’t collapsed, and customers are thinking of returning. While it could be some time before activity returns to 2019 levels, Carnival looks cheap compared to history. Like other badly effected UK shares, I think there’s a strong chance the stock could rebound in the short term as investor sentiment improves.  Rupert Hargreaves | Saturday, 28th November, 2020 | More on: BP CCL FSTA Rupert Hargreaves does not own any share mentioned. The Motley Fool UK has recommended Fuller Smith & Turner. 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. Image source: Getty Images Simply click below to discover how you can take advantage of this. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.center_img Our 6 ‘Best Buys Now’ Shares 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. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. “This Stock Could Be Like Buying Amazon in 1997” Enter Your Email Address See all posts by Rupert Hargreaveslast_img read more

2 UK shares I’d buy in a Stocks and Shares ISA for the new bull market!

first_img Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the 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. 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 £90,259Operating 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. FREE REPORT: Why this £5 stock could be set to surge I’m on the hunt for top UK shares to buy in 2021. Here are two I’m seriously thinking of adding to my Stocks and Shares ISA today.In a nosediveI don’t think Ryanair Holdings (LSE: RYA) is a UK share that’s for those of a nervous disposition. But it’s one I think could emerge as one of London’s hottest recovery plays in the new bull market.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…The Irish flyer’s share price has dropped sharply since the start of 2021. It’s down 13% as market makers have headed for the emergency exits. I think Ryanair’s fresh dive should come as no surprise amid a flurry of fresh Covid-19 travel rules. News that the UK is floating the idea of making foreign arrivals stay in quarantine hotels is one of the new dangers facing the airlines.The risks to Ryanair’s profits in 2021 are considerable in my opinion. Covid-19 vaccines are being rolled out across the globe, sure. However, with authorities failing to get a grip on the health crisis, and new variants of the virus emerging, who knows when the business will get the bulk of its fleet off the ground again? I’d say problems concerning vaccine delivery in recent days offer another reason for the risk-averse to be concerned.Riding out the stormHaving said that, I don’t think Ryanair is in danger of going under like some of its rivals have. And as a long-term investor, I feel this provides me with an appetising buying opportunity. According to Morgan Stanley the business has almost 15 months’ worth of liquidity based on current run rates. I’m confident this should see it through the worst of the crisis.Again, I’m someone who invests for the long term. I buy UK shares with a view to holding them for a decade or more. And so I’m not concerned by City forecasts that suggest Ryanair will record losses of 73 US cents per share this fiscal year (to March 2021). I’m encouraged by predictions that the Dublin firm will bounce back to record earnings of 56 cents a share in financial 2022.Besides, I feel that Ryanair’s solid balance sheet will allow it to make the most of the eventual recovery. This doesn’t just include its chances to ramp up its operations swiftly as the fight against Covid-19 turns. As IAG’s takeover of Air Europa shows, the landscape will be ripe with exciting acquisition opportunities when the dust settles. I’d buy for the long term.Another UK share on my radarBefore I go, I’d also like to quickly talk about Ten Entertainment Group. The tenpin bowling operator faces the same profit dangers as Ryanair in terms of Covid-19 restrictions. But this UK share is also in good financial health to help it navigate the crisis.Indeed, recent government loans and changes to its revolving credit facility mean that the leisure giant has enough liquidity to last “well into 2022,” it says. The bowling craze in Britain is far from over and I think profits from Ten Entertainment’s high-margin and market-leading centres could roll in again when lockdowns are eventually lifted. Enter Your Email Address Royston Wild | Thursday, 28th January, 2021 | More on: RYA Get the full details on this £5 stock now – while your report is free. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.center_img Our 6 ‘Best Buys Now’ Shares Image source: Getty Images Simply click below to discover how you can take advantage of this. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. 2 UK shares I’d buy in a Stocks and Shares ISA for the new bull market! See all posts by Royston Wildlast_img read more

2 of my favourite UK shares to buy in an ISA after the 2020 stock market crash

first_img See all posts by Royston Wild 2 of my favourite UK shares to buy in an ISA after the 2020 stock market crash I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. FREE REPORT: Why this £5 stock could be set to surge Royston Wild | Saturday, 30th January, 2021 | More on: SMDS UKW Simply click below to discover how you can take advantage of this. I don’t care about the worsening economic outlook for 2021. For my money, buying UK shares remains a brilliant idea right now. Hundreds of Stocks and Shares ISA investors became millionaires during the bull market of the 2010s. They watched the UK shares they bought in the depths of the banking crisis soar in value in the following decade. It showed how those with a patient approach to stock investing can make a fortune.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Inspired by their successes, I’ve continued buying for my own ISA following the 2020 crash. Here’s two UK shares I think could do wonders for my portfolio:A UK share on my ISA watchlistI believe that getting exposure to renewable energy is a brilliant idea as the climate crisis worsens. Data from electricity industry think tank Ember shows just how strongly the use of wind, solar, and hydroelectric sources is ballooning. It says that renewable usage in Britain accounted for 42% of all power generated last year. This compares with the 41% that was generated by fossil fuels.I think the use of green energy sources is only going to get stronger and stronger too. And I also think this will benefit stocks like Greencoat UK Wind (LSE: UKW), a company that invests in wind farms across all four countries of the UK. Current legislation demands a 100% reduction in greenhouse gas net emissions by 2050 relative to their 1990 levels.Right now, Greencoat UK Wind trades on an elevated price-to-earnings (P/E) ratio of 45 times. It’s important to note that such a high multiple leave the share in danger of a severe price correction if the company’s business performance turns out to be disappointing.On the plus side, though, at current prices the utilities giant also carries a 5.1% dividend yield for 2021. This smashes the broader 3.1% forward average for the broader UK share space to smithereens. I don’t own Greencoat in my ISA currently but I’m thinking seriously about piling in soon.Banking on e-commerceI think having exposure to e-commerce is another sound investment idea in the 2020s. I’ve gotten in on the act by investing in Tritax Big Box REIT and Clipper Logistics in my Stocks and Shares ISA. Trade at these UK shares is booming as increasing online shopping volumes bolster demand for their warehousing and distribution services.I also own shares in DS Smith (LSE: SMDS) to try to profit from e-commerce by 2030 too. This business supplies the sort of packing that Internet retailers use to get their products to their customers. Its industry-leading record of innovation means that the FTSE 100 firm’s products can be used across a variety of retail sectors, too. The company may see earnings come under pressure should a slow economic recovery weigh on broader consumer spending levels, however.Today this UK share trades on a forward P/E ratio of around 18 times. This is above the FTSE 100 historical average of 15 times, sure. But I think the immense profits opportunities that the soaring e-commerce market will present merit this blue chip’s current valuation. Get the full details on this £5 stock now – while your report is free.center_img Enter Your Email Address Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Our 6 ‘Best Buys Now’ Shares Royston Wild owns shares of Clipper Logistics, DS Smith, and Tritax Big Box REIT. The Motley Fool UK has recommended Clipper Logistics, DS Smith, Greencoat UK Wind, and Tritax Big Box REIT. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Image source: Getty Images 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 £90,259Operating 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.last_img read more