The BT share price is down, so should you snap up its 10% dividend yield?

first_img I reckon we’re in strange times for the FTSE 100 when BT Group (LSE: BT.A) is offering dividend yields as high as 10%. If you’re looking for income from your investments, you might think that’s one to snap up quick. If you invest £1,000 in a stock with an annual yield of 10%, in five years you’ll have £1,600. And in 10, your pot will have reached £2,600. So you might expect investors to be buying the shares, which would push the price back up. And that would reduce the dividend yield to around the long-term average.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…But exactly the opposite is happening. Investors, rather than snagging themselves an income steam of 10% per year, have instead been on a selling spree. BT shares have slumped 33% over the past 12 months, and by 65% in five years.No confidenceThe obvious conclusion is that the markets have little confidence in BT’s high dividends, and a look at forecasts confirms that. Analysts are expecting 15.4p per share for the current year, the same as it’s been for the previous three years after the telecoms giant hiked it to that level in 2017. But they’re predicting a fall to around 11p per share next year, for a cut of nearly 30%.In that, BT is echoing what’s happened to Vodafone before it. For years, Vodafone was offering high yields that weren’t even covered by earnings, and the share price suffered similarly. The company bowed to the inevitable in 2019 and slashed the dividend by 40%. Some people, including me, still think that’s too high and expect further pain for Vodafone shareholders.I think the same is true of BT. The predicted 11p dividend for next year would give shareholders a yield of 7.2%, and that’s still a terrific annual income. It would, after all, still be enough to double that £1,000 investment in 10 years.Further pain?Again, we can only assume investors fear further dividend cuts in the years ahead. I share those fears, and I have to ask two questions. Firstly, why is the BT dividend under pressure?It’s in a very competitive and developing high-tech market and it needs to invest billions to keep up with technology. BT recorded capital expenditure in the first half of the year of approximately £1.9bn, which suggests £3.8bn per year. Against that, dividends are costing the firm around £1bn per year.If there’s enough cash to afford that, fine. But at the Q3 stage at 31 December, BT’s net debt stood at a staggering £18.2bn. That’s 64% worse than a year ago, although some of the increase is due to the move to IFRS 16 accounting standards. And BT is still stumping up pension fund deficit payments too.Buying debtTo put BT’s debt into some kind of perspective, it represents 120% of the company’s entire market capitalisation. So if you buy BT shares, you’re buying more debt than company.Now to my second question. Why do companies pay such big dividends when they’re shouldering massive debts and really can’t afford them? After scratching my head many times over what I see as inadequate capital management, I still can’t work out a convincing justification. When I see such a dividend/debt situation, I walk away and look elsewhere. Our 6 ‘Best Buys Now’ Shares Image source: Getty Images. Alan Oscroft | Friday, 14th February, 2020 | More on: BT-A 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. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! 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.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. The BT share price is down, so should you snap up its 10% dividend yield? “This Stock Could Be Like Buying Amazon in 1997” See all posts by Alan Oscroft Alan Oscroft 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.last_img read more

I think this FTSE 100 growth stock can keep growing earnings despite the coronavirus

first_imgI think this FTSE 100 growth stock can keep growing earnings despite the coronavirus 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. 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. Our 6 ‘Best Buys Now’ Shares Royston Wild owns shares of Unilever. The Motley Fool UK owns shares of and has recommended Unilever. 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. Royston Wild | Tuesday, 17th March, 2020 | More on: ULVR center_img Enter Your Email Address “This Stock Could Be Like Buying Amazon in 1997” The panic enveloping financial markets remains at jaw-dropping levels. The FTSE 100’s dropped to its cheapest in a decade and Unilever (LSE: ULVR) is just one blue-chip that has suffered a pasting. Falling 20% during the past month, this major producer of fast-moving consumer goods (FMCG) is now trading at levels not seen since spring 2018.This rapid sell-off leaves Unilever dealing on a forward price-to-earnings (or P/E) ratio of 15.4 times. Compare this to its usual premium rating north of 20 times. It also carries a chunky 4.2% dividend yield. I’m an owner of this particular stock and I reckon it’s a brilliant buy at these prices.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…ResilienceOf course, the Anglo-Dutch business is not completely without risk. It has already been suffering from tough trading conditions in some of its core regions, a reflection of a cooling global economy and intense competitive pressures. Because of these stresses, the firm has warned that underlying sales growth in 2020 would likely be located at “the lower end” of its 3% to 5% target.On top of this, the Covid-19 pandemic has raised fears over revenues growth still further. The firm warned in January that “the impact of the coronavirus outbreak is unknown at this time.”But I’m not fearing a sudden drop-off in Unilever’s sales any time soon. It’s possible, in fact, that sales of some of its key labels have jumped in recent weeks and could continue doing so.Soap starUnilever is a major player in the business of beauty and personal care. In fact, along with L’Oréal and P&G, it’s one of the world’s Big Three operators. It’s a category which generates a whopping 44% of turnover at group level. And following recent comments from Kantar Worldpanel, I believe it’s a division which could prove to be the company’s ace in the hole.Unilever, through its beloved brands like Dove, Lux, Simple, Lifebuoy and Liril sells a ridiculous amount of soaps and shower gels all over the globe. And unless you’ve been living in a cave for the past fortnight, you’ll know how these particular products have been selling like hotcakes in recent weeks. It’s why Kantar has called the body cleansing field “a hero category”.A top buyFears of contamination mean that soap might be the most obvious of Unilever’s products to be flying off the shelves right now. But this is not the only grouping in which Kantar suggests sales could leap.The skincare category could also experience a demand boom, it says as individuals endure “long periods of staying at home, the lack of exercise, and the wearing of face masks,” and skin dullness, sensitivity and roughness subsequently increase. It says that hand cream sales could also rise due to increased hand washing. Along with some of those aforementioned labels, Unilever also has a huge stake in this area thanks to brands like Citra, Fair & Lovely, St. Ives and Pond’s.In my opinion, then, Unilever’s remains in great shape to keep its long record of annual profits growth going.  So do City analysts who reckon earnings will rise 5% in 2020. If you’re seeking top-quality defensive stocks in these troubled times, I think this Footsie firm is one of the best. 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. See all posts by Royston Wild Image source: Getty Images. last_img read more

Why is ITV’s share price falling?

first_imgSimply 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. Edward Sheldon, CFA | Wednesday, 22nd July, 2020 | More on: ITV Our 6 ‘Best Buys Now’ Shares “This Stock Could Be Like Buying Amazon in 1997” See all posts by Edward Sheldon, CFA 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. Edward Sheldon owns shares in ITV. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool UK owns shares of and has recommended Amazon and Netflix. The Motley Fool UK has recommended ITV and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. 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 Why is ITV’s share price falling? 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. The last time I covered ITV (LSE: ITV) shares was in April, shortly after the stock market crash. At the time, the FTSE 100 stock was about 60% below its 52-week high and I said that, in my view, it potentially had 50% upside.For a while my prediction was looking pretty good. In the following six weeks, ITV’s share price rose from around 72p to 91p, a gain of about 26%. However, recently, ITV shares have lost their momentum and fallen back to 64p. This is disappointing for shareholders, myself included. So, why has ITV’s share price fallen? Let’s take a closer look.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…Why have ITV shares fallen?I can think of a few reasons why they’ve fallen since early June. Firstly, it seems a lot of investors are concerned about the threat of streaming services, such as Netflix and Amazon Prime. This is certainly a legitimate concern.Indeed, my colleague Karl Loomes believes that, as a result of the increased popularity of streaming services, many businesses may not spend as much on TV advertising as they did. Karl thinks we could be seeing the start of a fundamental shift in the industry.The fact that ITV hasn’t provided any clarity over advertising revenues since its first-quarter results in early May won’t have helped investor sentiment.Institutional sellingSecondly, one institutional investor has recently offloaded a significant number of ITV shares. According to regulatory filings, The Capital Group has recently dumped around 205m shares. This selling activity reduced the investment management group’s stake in ITV from 9.99% to 4.91% as of 15 July.That kind of heavy selling is likely to have put pressure on ITV shares. It could definitely help to explain why its share price has fallen recently.Earnings downgradesAnother reason is that analysts have continued to lower their earnings forecasts for this year and next. Over the last month, for example, the consensus earnings per share (EPS) forecast for FY2020 has fallen from around 8.8p to 8.5p. Earnings downgrades can impact a company’s share price negatively.ITV may exit the FTSE 100Finally, it’s worth pointing out that ITV’s current market capitalisation is just £2.6bn. That makes it one of the smallest companies in the FTSE 100. If ITV’s share price doesn’t increase, it won’t be long until the stock is dumped from the FTSE 100 index. This could also be impacting sentiment towards the stock.What’s next for ITV’s share price?Can ITV’s share price recover? I still believe it can. First-quarter results in May weren’t great, but they weren’t terrible either. There were definitely some positives.For example, the company said ITV Studios was seeing “good demand” for its library content internationally. Meanwhile, it said that it was seeing “good growth” for BritBox free trial starts and subscriptions.Of course, there are plenty of risks here. However, if ITV can execute on its strategy to become a digitally-led media and entertainment company that creates brilliant content, there should be rewards for patient long-term investors. 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 Enter Your Email Addresslast_img read more

Investing money in the stock market? I’d start like this

first_img 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” Kevin Godbold has no position in any share 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. Investing money in the stock market? I’d start like 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. Kevin Godbold | Monday, 17th August, 2020 I reckon it’s a great time to think about investing money in the stock market, even if you’re doing it for the first time.We arguably saw the worst of the current recession during the second quarter of the year. And the stock market crash in the spring blew the froth from share prices and knocked down, or out, some of the weaker companies.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…Why I’d start investing money in the stock marketThere’s been a shake-up since, with strong players adapting to a Covid-19 environment well. Those companies’ shares have been bouncing back. Others still languish. Generally, I reckon the stock market has got most things ‘right’ since the crash, and most shares are where they ‘should’ be.It’s worth considering that bull runs begin at the bottom of bear moves. And the re-setting we’ve seen has cleared the way for strong businesses to thrive from here. Meanwhile, in the real UK economy, several shorter-term challenges could recede soon.For example, the UK will have completed its free trade agreement negotiations with the European Union by the end of the year. And the long-running saga of Brexit may begin to fade. On top of that, the world may see a vaccine for Covid-19 soon.If you invest for the long-term you’ll have a tailwind behind you. Indeed, over timescales measured in decades, the trajectory of the stock market has always been up. So the prospects for investors look good over short and long timescales.And I’d begin by building a bedrock in my portfolio of tracker funds and investment trusts. But with a little bit of investing experience under my belt, I’d aim for even higher returns by choosing the shares of individual companies.One overriding considerationSome investors focus on the cheapness of valuations before anything else. If you look at fallen share prices and see low earnings multiples and high dividend yields, you’re looking at cheap shares. Or if earnings have ‘temporarily’ plunged because of a short-term event – such as the current pandemic – we could deem a share cheap just because it’s fallen.Another approach involves looking for shares that are leading the market and trading at new highs. Often, operational progress in the underlying business drives those stocks higher and the strength could flag a strong underlying business. A third approach ignores share price movements altogether and focuses on dividend yields. The idea is to collect and compound dividend income rather than to rely on share price movements to deliver a capital gain.All those investment strategies can be successful. But I reckon one consideration overrides all others when selecting shares – quality. Indeed, Warren Buffett aims to buy what he describes as “wonderful” businesses to hold for the long term. He’s focusing on the quality of the underlying enterprise above all other considerations. And I reckon that’s the safest and most effective way to approach investing. Simply click below to discover how you can take advantage of this.center_img Our 6 ‘Best Buys Now’ Shares Enter Your Email Address Image source: Getty Images. 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. See all posts by Kevin Godboldlast_img read more

The Premier Oil share price is crashing again: should you buy or sell?

first_img Image source: Getty Images. The Premier Oil share price is crashing again: should you buy or sell? 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. Roland Head 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. Our 6 ‘Best Buys Now’ Shares Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Simply click below to discover how you can take advantage of this.center_img Roland Head | Thursday, 20th August, 2020 | More on: HBR “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. The Premier Oil (LSE: PMO) share price fell by more than 20% in early trading on Thursday. The fall came after the North Sea firm reported a $672m loss for the first half of 2020 and announced plans to raise up to $530m by selling new shares.In my last piece on Premier I warned that shareholders buying this stock faced significant risks. Today, I’m going to review the latest figures and explain why I still think this is a stock most investors should avoid, despite the potential for gains.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…A super operatorI’ve always rated Premier as a good operator. Today’s results confirm that impression. Production during the first half of the year was on target at 67,300 boepd (barrels of oil equivalent per day). The firm’s full-year guidance of 65,000-70,000 boepd is unchanged.Low operating costs of $18 per barrel mean Premier still generated operating cash flow of $324m during the first half, despite March’s historic oil price crash.Existing projects are progressing well and the acquisition of the Andrews Area and Shearwater assets from BP has been approved by lenders. These fields should add another 19,000 boepd of production.Given all of this, why isn’t the Premier Oil share price rising? And why aren’t I buying?Shareholders must stump up at least $325mThe first half of the year was incredibly tough for oil producers. But Premier still managed to generate $25m of surplus cash. This was used to chivvy down the group’s net debt, from $1.99bn to $1.97bn.Unfortunately, fiddling around the edges like this won’t be enough to allow Premier to repay its debts by the current deadline of May 2021. The group isn’t generating enough cash to fund the $230m upfront payment required for the BP deal either.Given all of this, today’s news of yet another refinancing isn’t a complete surprise. To extend the maturity of its loans to March 2025 and complete the BP deal, Premier will try to raise up to $530m by selling new shares. A minimum of $325m will be required for the refinancing to go ahead.Why the Premier Oil share price could keep fallingAssuming it’s approved in a formal vote by the group’s lenders, I think this refinancing deal should secure Premier’s future for the next few years.However, the deal will see the average interest rate on Premier’s debt rise by 1.4% to 8.34%. My sums suggest that interest payments alone will cost around $165m per year. That’s around $13 for every $100 of revenue, based on 2021 forecasts. Debt costs like this aren’t likely to leave much profit for shareholders, unless oil prices rise sharply.Shareholders are also facing heavy dilution. At the last-seen share price of 27p, Premier’s market-cap is just £265m, or around $345m. Given that Premier has to raise at least $325m from shareholders, I think we can expect the group’s share count to double, at least.If shareholders refuse to provide the new cash, the group could go into administration. That would send Premier’s share price to zero pence.This stock will probably remain volatile over the next year. But, in my view, this situation is far too risky for most investors. It’s certainly a stock I’ll be avoiding. 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 Roland Headlast_img read more

The AstraZeneca share price is climbing. I’d buy for my Stocks & Shares ISA today

first_imgThe AstraZeneca share price is climbing. I’d buy for my Stocks & Shares ISA today Alan Oscroft 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. Alan Oscroft | Sunday, 30th August, 2020 | More on: AZN AstraZeneca (LSE: AZN) has, unsurprisingly, been largely immune to the 2020 stock market crash. When we’re in a pandemic, pharmaceuticals companies can look nicely defensive to investors. As a result, the AstraZeneca share price has gained more than 10% year-to-date, while the FTSE 100 has lost 20%AstraZeneca has been making headlines this week, largely thanks to Donald Trump. The company is developing a Covid-19 vaccine in partnership with Oxford University. And the the US President is reportedly keen to get his hands on it ahead of the upcoming election. That would mean bypassing the FDA’s usual regulatory requirements and awarding emergency use authorisation for the vaccine, based on studies done in the UK.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…Let’s not get too excitedBut the Oxford and AstraZeneca researchers are pouring cold water on the story. They’ve denied they’re in any talks with the Trump administration. And UK trials to date are said to be too small to provide the needed data. In addition, the UK government has already earmarked early vaccine supplies for domestic use. So don’t get your hopes up of big US profits boosting the AstraZeneca share price any time soon.In other news, AstraZeneca has commenced a new phase 1 trial. It involves a combination of two monoclonal antibodies for the prevention and treatment of Covid-19. But the trial will be a small one, covering just 48 healthy individuals aged between 18 and 55. It’s really just a safety trial at this stage.Is this good for investors?So what does all this say to investors? I think we can take mixed messages from it. Firstly, we’re not going to see blockbuster drug profits from Covid-19 vaccines. At least not while the pandemic is still on, and drugs firms have pledged to keep costs down. The AstraZeneca share price is not going to be boosted by big vaccine profits this year.But looking at the wider picture, AstraZeneca could be on a path to significant longer-term profits. Firms are pushing vaccine research way harder than usual, with government financial support, and are fast-tracking developments. The progress that’s likely to be made by the end of 2021 could well have taken five years or more if we were facing less of an emergency.And it’s looking less and less like Covid-19 will be a ‘vaccinate once and it will go away’ virus. Countries have already reported different strains, and strong immunity is far from guaranteed. I think there’s every chance we could end up with a similar situation to influenza, with new vaccines needed annually. Only they’ll be a lot more urgent.The AstraZeneca share price in 10 yearsThe knowledge gained from pioneering new techniques will surely benefit AstraZeneca in the long run. And it could help to seriously beef up the firm’s immunology pipeline in the coming years.In short, I’m not seeing a get-rich-quick opportunity based on Covid-19 research. But I am seeing ever more reason to invest in AstraZeneca for the long term. I really think the AstraZeneca share price could do very well over the next decade. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! “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. Our 6 ‘Best Buys Now’ Sharescenter_img 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. See all posts by Alan Oscroft 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. Enter Your Email Address Image source: Getty Images Simply click below to discover how you can take advantage of this.last_img read more

Stock market crash: a 6.3%-yielding UK share I’d buy in an ISA in November

first_img It’s been another tough few days for share investors as the Covid-19 crisis worsens. The spiking infection rate means another UK-wide lockdown lasting at least a month comes in this Thursday. Similar barriers are being put up and travel restrictions imposed across other major parts of the globe too. It’s quite possible that UK share prices have further to fall in the short-to-medium term.I’m not yanking my hair out in terror though. As a long-term investor, periods of extreme volatility like we’ve been seeing in 2020 won’t stop people like me from making big returns. Those who buy and hold UK shares for 10 years and more make an average yearly return of 8-10%, history shows us.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…In fact, heavy stock market falls like those of recent days provide a brilliant buying opportunity for UK share investors. It allows us to pick up quality stocks at low prices, stocks that will surge in value when market confidence recovers.A top dip buyThere are stacks of brilliant UK shares that appear too cheap to miss today. And there are some in particular that have caught my eye as we move into November. These stocks could rebound sooner rather than later as I expect them to publish positive trading updates in the coming days.Warehouse REIT (LSE: WHR) is one such stock on my watchlist today. This UK share recently closed at five-month lows, giving eagle-eyed dip-buyers a chance to nip in. Indeed, today is a particularly good time to buy with half-year results slated for tomorrow (3 November). I’m anticipating another set of sunny financials.This AIM company isn’t totally immune to these challenging economic conditions. But, as a major provider of logistics and warehousing spaces, it’s benefitted from the stunning growth of e-commerce in 2020. As a consequence, it collected 94% of rents for the June quarter, its last update showed. Furthermore, Warehouse REIT’s list of blue-chip tenants like Amazon and Argos can be relied on to keep rents rolling in.A UK share with BIG dividendsWarehouse REIT also has mountains of cash to cover any near-term troubles on the rent front. It’s this balance sheet strength that makes the UK share such a terrific dividend stock as well.City analysts reckon annual earnings will drop 12% in the current fiscal year (to March 2021). Yet they reckon the business has the financial robustness to keep raising dividends. And this results in a monster 6% dividend yield.Finally, with annual earnings predicted to rebound 27% in fiscal 2022, annual dividends are unsurprisingly expected to spike again. And this nudges the yield to a handsome 6.3%. But don’t just think of this UK share as a dividend hero. A healthy balance sheet means that Warehouse REIT is also investing heavily in its estate to drive future profits growth too.This is one UK share I’d buy today and hold for years to come. But it’s not the only dividend hero I’d add to my ISA right now. Simply click below to discover how you can take advantage of this. Image source: Getty Images Our 6 ‘Best Buys Now’ Shares See all posts by Royston Wild 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. Stock market crash: a 6.3%-yielding UK share I’d buy in an ISA in November 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.center_img 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. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Amazon. The Motley Fool UK has recommended Warehouse REIT and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. 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. Enter Your Email Address Royston Wild | Monday, 2nd November, 2020 | More on: WHR “This Stock Could Be Like Buying Amazon in 1997”last_img read more

I think these are the worst UK shares to own in a stock market crash

first_imgI think these are the worst UK shares to own in a stock market crash Enter Your Email Address 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 As we head into a second lockdown, the risks to UK shares are growing. A second stock market crash could be just around the corner, although at this stage, it is impossible to tell. This is the big problem investors face right now. It is impossible to predict the outlook for UK shares over the medium term. 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…That’s why I’m preparing for all eventualities. Rather than trying to gamble on what might happen, I’ve positioned my portfolio for the worst. That means I’ve been attempting to divest any shares that might suffer in a second stock market crash or extended economic slump. UK shares to avoid The firms I’ve tried to avoid are those companies with lots of debt and thin profit margins.A great example is Cineworld. This business built up a tremendous amount of debt before the crisis and was then forced to shut in the pandemic. Even if the company does manage to reopen at the beginning of next year, it will still have more than $8bn of debt to repay. I think the group will find it tough to meet these obligations, even if profits ever return to 2019 levels. Airline companies are an example of the sorts of UK shares with tight margins that I want to avoid. Most airlines only make money if their flights are fully booked. Profit margins are so slim that even a slight drop in capacity can lead to a significant slump in profitability. That’s why I’ve always tended to avoid airlines like IAG and easyJet. There’s just too much that can go wrong. It may also be sensible to avoid financial firms, in my opinion. Some initial forecasts suggest that some banks, such as Barclays and Lloyds, may be able to ride out the economic storm, but others may not be so lucky.Operations like Virgin Money and OneSavings could struggle to continue to attract customers in the current interest rate and economic environment.That’s why I think the best decision may be to avoid them altogether. In my view, there are plenty of other UK shares that may perform better in another stock market crash. Companies I’d buy So, those are the sorts of companies I’m trying to avoid. On the other hand, I’m buying high-quality blue-chip UK shares to hold for the long term. Some organisations, such as Unilever and Diageo, continue to trade at what I believe are highly attractive valuations.As such, I’ve been focusing on these stocks rather than trying to guess what the future holds for weaker businesses. That’s the great thing about investing, one does not have to own every stock. It’s possible to pick and choose individual equities that appear to have brighter outlooks than the rest of the market.I’m taking full advantage of this benefit to position myself for a second stock market crash.  Rupert Hargreaves | Sunday, 8th November, 2020 Image source: Getty Images center_img Simply click below to discover how you can take advantage of this. Rupert Hargreaves owns shares in Unilever and Diageo. The Motley Fool UK has recommended Barclays, Diageo, Lloyds Banking Group, and Unilever. 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” See all posts by Rupert Hargreaves 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!last_img read more

Bitcoin’s price is almost $40k! But I’d still follow Warren Buffett’s advice in 2021

first_img Zaven Boyrazian | Thursday, 14th January, 2021 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. “This Stock Could Be Like Buying Amazon in 1997” 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. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! See all posts by Zaven Boyrazian Bitcoin’s price is almost $40k! But I’d still follow Warren Buffett’s advice in 2021 Enter Your Email Address Simply click below to discover how you can take advantage of this. Image source: Getty Images Over the past few weeks, Bitcoin’s price has skyrocketed to almost $40,000, yet Warren Buffett continues to oppose the cryptocurrency. His views on the digital currency were made perfectly clear after stating: “I don’t own any cryptocurrency and I never will.”But why exactly is Buffett not interested? Let’s take a closer look.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…Warren Buffett vs the Bitcoin priceWhen looking to invest in anything, Warren Buffett seeks out something that creates value. Just like gold, Bitcoin doesn’t ‘do’ anything. It doesn’t provide any products or services as a business does. With no underlying fundamentals, It seems to me that the value of Bitcoin is entirely subjective. In other words, the price is driven by what the next person is willing to pay for it.A more concerning aspect of the cryptocurrency is the lack of regulation. As such, it’s common and perfectly legal to artificially inflate the price of Bitcoin through ‘pump & dump’ schemes. Put simply, this is where a large group of individuals ‘pump’ up hype through publicity after buying a large portion of a cryptocurrency. When it reaches a specific price, they ‘dump’ their position and often crash the price in the process. Such practises are illegal in the stock market.Investing in undervalued UK sharesWarren Buffett’s net worth today is approximately $86bn. He built his fortune by employing the simple strategy of buying high-quality businesses at low prices. More specifically, looking for stocks whose share price has fallen due to short-term problems but that could recover and thrive over the long term.When the pandemic struck the UK markets in early 2020, many great businesses saw their share prices slashed. Industries such as travel and entertainment were especially hard hit by the disruptions. However, some stocks whose operations were temporarily impacted have since returned to pre-Covid levels of output. Yet their share prices remain low.Needless to say, I think there are still plenty of opportunities in 2021 to buy shares in high-quality businesses.The bottom line: is Warren Buffett right?Only time will tell whether Warren Buffett’s view of cryptocurrencies is correct. The thought that Bitcoin’s price might keep climbing forever does make it seem very attractive. But it’s a gamble I’m not willing to take. After all, we could be in the middle of a pump & dump scheme right now.Meanwhile, the UK market remains seriously undervalued, in my opinion. The FTSE 100 continues to trade at pre-Covid levels, despite the vast majority of businesses in the index becoming well adapted to the new environment.With so many great stocks trading at discounted prices, the opportunities to grow my wealth seem endless. I could, of course, be wrong. The price of Bitcoin might continue to climb higher. But I’d rather stick to a strategy proven to work for decades, than gamble with an intangible asset.last_img read more

These FTSE 100 shares are rising. Here what I’d do

first_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. Image source: Getty Images. 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! “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. Dylan Hood has no positions 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. Our 6 ‘Best Buys Now’ Sharescenter_img The pandemic presents an ongoing struggle for most businesses, driving down both share prices and profits. However, in the past six months, these two FTSE 100 shares have risen 35% and 55% respectively. After this impressive run, I’m going to take a closer look at the investment case of these banking stocks.HSBCHSBC (LSE: HSBA) shares are down 8% year-to-date. However, the bank recently announced that its dividend payments will resume, an encouraging sign of financial health. There are some other reasons to be bullish about this stock’s investment case too.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…HSBC’s overwhelming presence in Asia is a massive asset. Covering 98% of Asia’s total GDP, the bank has massive market reach, as well as consumer loyalty. By 2030, Asia is expected to contribute around 60% of the world’s economic growth. This is encouraging for the FTSE 100 share’s growth projections.However, there are some risks that need considering. HSBC revised its return on tangible equity target (RoTE) of between 10% and 12%. It is now targeting a medium-term RoTE of around 10%. This is essentially the bank reducing its profitability forecasting, something no investor wants to hear.Banks must also face the growing threat that cryptocurrencies pose. The world seems to be moving in a crypto-centric direction, facilitating faster, more secure payments and doing away with the need for cash. This is a huge worry for banks like HSBC, which must quickly adapt to this problem.Overall, although HSBC’s Asian growth is encouraging, there are still medium-term profitability problems. Nonetheless, at current share prices, I think this FTSE 100 share could be a solid addition to my portfolio.LloydsLloyds (LSE: LLOY) has risen a hefty 55% in the last six months and is up 22% in share price for the year. The reopening of the UK in the near future should provide a well-needed boost to the economy, complementing share prices. This huge increase in spending could lead to a period of post-pandemic inflation. While this is bad news for growth stocks, it’s good news for banks as it increases their net interest margins.The bank currently trades off a price-to-book (P/B) ratio of 0.69. For context, a P/B ratio of under 1 shows the stock is being traded at a lower share price than current book value. This may signify the stock is undervalued, which is an important consideration for the investment case.Lloyds’ 2020 Q3 update sent share prices soaring, revealing the firm had delivered a pre-tax profit of £620m. This contrasted with the £676m loss for Q2, down from a £1.3bn profit in the same period of 2019. The firm was able to turn round a statutory profit after tax of £1.4bn for 2020. Chief Executive Antonio Horta-Osorio stated these results demonstrated the strength of Lloyds’ “balance sheet and strategy”.However, Lloyds bank is primarily UK-focused. This means that it is heavily reliant on UK economic performance. Although UK lockdowns are easing, there is no promise of a bright economic future. This is a disadvantage when comparing this FTSE 100 share to HSBC.All things considered, I think this FTSE 100 share is solid. However, with such a domestic focus, I think there are better bank stocks I could add to my portfolio. 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. Simply click below to discover how you can take advantage of this. These FTSE 100 shares are rising. Here what I’d do See all posts by Dylan Hood Dylan Hood | Tuesday, 30th March, 2021 | More on: HSBA LLOY last_img read more