Image source: Getty Images Over the last 12 months, the Lloyds Banking Group (LSE:LLOY) share price has gone from 58.5p to 79.4p. That’s a 36% gain, but the question is, can it keep going? In general, stocks go higher because either the company’s earnings per share (EPS) increases, or it starts trading at a higher multiple. So could either of these happen for Lloyds shares? Earnings growth Let’s start with earnings. Lloyds has seen its EPS go from 1p to just below 6p over the last five years, but the bank‘s going to have to deal with a number of…
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Image source: Getty Images When it comes to building a second income through investing, dividend stocks remain one of the most reliable tools in the box. A well-diversified basket of companies with strong cash flows can provide a steady stream of income that grows alongside inflation. However, it’s not enough to simply chase the highest yields on offer. A dividend needs to be sustainable, backed by a strong track record of payments and ideally supported by earnings growth. Finding yields above 7% can be especially tempting, but investors need to be wary of ‘dividend traps’ – companies that pay big…
Image source: Getty Images Both in the UK and the US, the stock market hasn’t made a great start to the month. The FTSE 100 and the S&P 500 are both down since Monday (1 September). This, however, isn’t that unusual. Historically, September has been a bad month for share prices and there are some important reasons why this is the case. The ‘September Effect’ The decline in the stock market a this time of year is well-known enough to have a name. It’s called the September Effect and there are several potential explanations associated with it. One is higher…
Instacart is backpedaling.The app company that waged an all-out (and unsuccessful) campaign against a City Council bill to create a minimum wage for grocery delivery workers has abandoned a much-disputed earlier claim that fair pay would raise the cost of groceries — and is now flip-flopped to say it supports the bill.Well, sort of.In a letter sent on Wednesday to its longtime lobbying target Council Speaker Adrienne Adams, the company reframed its objections to closing the so-called “Instacart Loophole” and now says it “fully support[s] a minimum pay standard of $21.44 per hour for grocery delivery workers in New York…
Image source: Getty Images Despite their popularity, American stocks currently look expensive to me. The S&P 500 index trades on 25.2 times trailing earnings, close to the top of its valuation range. Also, its dividend yield is 1.2% a year, close to historic lows. Meanwhile, the UK’s FTSE 100 index trades on 14.1 times earnings and offers a passive income of 3.4% a year. That does look attractive to me. Delicious dividends As a value investor, I like buying shares in good companies at fair prices. Also, I love earning dividends — regular cash payouts made by some companies to…
Image source: Getty Images The FTSE 100 leading index of stocks has delivered a 12% gain in the year to date. With fears over valuations on US shares mounting, it’s perhaps no surprise that global investors have been seeking out cheaper UK shares. Having said that, the FTSE’s rise must also be viewed against a backdrop of high economic and geopolitical uncertainty. Trade tariffs are impacting global growth, inflation is rising, and doubt persists over the scale of interest rate cuts. In this environment, some commentators believe the London stock market is now in danger of crashing. I have enough…
Image source: Getty Images According to analysts, Jet2 (LSE:JET2) shares are undervalued by around 34%. So, according to their interpretation of ‘fair value’, if it were trading at that fair value and listed on the UK main market, it would be a FTSE 100 stock. The problem therefore is twofold… it’s not listed on the main market (it’s an AIM stock) and it’s not currently worth more than the 100th most valuable company on the main market. So if it were to move to the main market, it would rank around the top of the FTSE 250. So, will this change any time soon?…
Image source: Getty Images Looking for the best recovery shares to buy this month? Here are two great FTSE 100 and FTSE 250 stocks to think about next month. A cheap gold stock Surging precious metals prices have swept a wide selection of gold stocks higher in 2025. Hochschild Mining (LSE:HOC) for instance has risen 15% in value since 1 January. However, the Latin American miner has endured a bumpy ride due to problems at its Mara Rosa mine in Brazil. And last week its shares plummeted after it warned “heavier-than-usual seasonal rainfall and contractor performance issues” would see it…
Image source: Getty Images The FTSE 100 has risen a healthy 10% in 2025, yet the UK’s leading index of shares remains packed with top bargains for investors to consider. Here’s one I think’s worth particularly serious attention as nervousness among investors increases. It’s risen 188% in the year to date, and could continue rising even if the broader Footsie falls back. The company’s cheap valuation provides scope for further share price gains too. Let’s take a look. The background Gold’s surge to fresh record highs has grabbed most of the commodity headlines this week. What’s gained less attention is…
Image source: Getty Images Diversification doesn’t need to mean settling for sub-par returns. With hundreds of investment trusts to choose from, UK investors can effectively spread their holdings to reduce risk, while still targeting significant capital gains and a large and reliable flow of dividends. Here are three I think investors should consider as part of a high-performing Stocks and Shares ISA. Tech star The first thing to think about is harnessing the huge growth potential of the information technology sector. The digital economy continues to expand rapidly, and phenomena like artificial intelligence (AI), quantum computing, self-driving vehicles and automation…