How to buy Lloyds Banking Group (LLOY) shares
Learn how to easily invest in Lloyds Banking Group shares.
Like most stocks, Lloyds shares tumbled in early 2020, but bounced back somewhat towards the end of the year. Some investors believe it may continue to rally in 2021 due to optimistic profitability predictions.
How to buy shares in Lloyds Banking Group
- Choose a platform. If you're a beginner, our share-dealing table below can help you choose.
- Open your account. You'll need your ID, bank details and national insurance number.
- Confirm your payment details. You'll need to fund your account with a bank transfer, debit card or credit card.
- Search the platform for stock code: LLOY in this case.
- Research Lloyds Banking Group shares. The platform should provide the latest information available.
- Buy your Lloyds Banking Group shares. It's that simple.
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What's in this guide?
- Can I buy shares in Lloyds Banking Group?
- Has coronavirus impacted Lloyds Banking Group shares?
- Lloyds Banking Group shares summary
- Compare share dealing platforms
- Is Lloyds Banking Group stock a buy or sell?
- Performance over time
- Is Lloyds Banking Group suitable for ethical investing?
- Are Lloyds Banking Group shares over-valued?
- How volatile are Lloyds Banking Group shares?
- Does Lloyds Banking Group pay a dividend?
- Have Lloyds Banking Group shares ever split?
- Other common questions
How has coronavirus impacted Lloyds Banking Group's share price?
Since the stock market crash that started in February 2020, Lloyds Banking Group's share price has had significant negative movement.
Its last market close was 53.88p, which is 2.66% down on its pre-crash value of 55.35p and 80.70% up on the lowest point reached during the March 2020 crash when the shares fell as low as 29.817p.
If you had bought £1,000 worth of Lloyds Banking Group shares at the start of February 2020, those shares would have been worth £540.58 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth £952.79.
Lloyds Banking Group share price (LSE:LLOY)Use our graph to track the performance of LLOY stocks over time.
Lloyds Banking Group shares at a glance
|52-week range||32.2362p - 56.0009p|
|50-day moving average||48.5536p|
|200-day moving average||46.8849p|
|Wall St. target price||60.16p|
|Dividend yield||1.2p (2.44%)|
|Earnings per share (TTM)||24.5p|
Fees for buying 500x Lloyds Banking Group shares with popular platforms
Share prices fluctuate in real time, so the costs presented here should be considered as a guide only. They do not incorporate stamp duty. Always refer to the platform itself for availability and pricing – which may differ from our information.
|Platform||Platform fee||Min. initial deposit||Trading fee estimate|
|Capital at risk|
|Capital at risk|
|Capital at risk|
|Capital at risk|
|£9.99 per month||No minimum||£7.99
|Capital at risk|
|Capital at risk|
|£36 per year||£20||£9.50
|Capital at risk|
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
Is it a good time to buy Lloyds Banking Group stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Is Lloyds Banking Group under- or over-valued?
Valuing a stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of overall performance. However, analysts commonly use some key metrics to help gauge value.
Lloyds Banking Group's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 2x. In other words, Lloyds Banking Group shares trade at around 2x recent earnings.
That's relatively low compared to, say, the trailing 12-month P/E ratio for the FTSE 250 at the end of September 2019 (19.71). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.
However, Lloyds Banking Group's P/E ratio is best considered in relation to those of others within the banks-regional industry or those of similar companies.
Lloyds Banking Group's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 0.1869. A PEG ratio below 1 can be interpreted as meaning the shares are not overvalued given the current rate of growth.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Lloyds Banking Group's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
However, it's sensible to consider Lloyds Banking Group's PEG ratio in relation to those of similar companies.
|Revenue TTM||£16 billion|
|Operating margin TTM||41.9%|
|Gross profit TTM||£11 billion|
|Return on assets TTM||0.7%|
|Return on equity TTM||12.04%|
|Market capitalisation||£39 billion|
TTM: trailing 12 months
Environmental, social and governance track record
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Lloyds Banking Group.
Total ESG risk score
Lloyds Banking Group's total ESG risk: 29.76
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Lloyds Banking Group's overall score of 29.76 (as at 12/31/2018) is nothing to write home about – landing it in it in the 44th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Lloyds Banking Group is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
To gain some more context, you can compare Lloyds Banking Group's total ESG risk score against those of similar companies.
Lloyds Banking Group's environmental score: 8.82/100
Lloyds Banking Group's environmental score of 8.82 puts it squarely in the 8th percentile of companies rated in the same sector. This could suggest that Lloyds Banking Group is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Lloyds Banking Group's social score: 15.38/100
Lloyds Banking Group's social score of 15.38 puts it squarely in the 8th percentile of companies rated in the same sector. This could suggest that Lloyds Banking Group is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Lloyds Banking Group's governance score: 16.56/100
Lloyds Banking Group's governance score puts it squarely in the 8th percentile of companies rated in the same sector. That could suggest that Lloyds Banking Group is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Lloyds Banking Group's controversy score: 3/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. A high-profile company, Lloyds Banking Group scored a 3 out of 5 for controversy – a middle-of-the-table result reflecting that Lloyds Banking Group hasn't always managed to keep its nose clean.
Wondering how that compares? Below are the controversy scores of similar companies.
Environmental, social, and governance (ESG) summary
|Total ESG score||29.76|
|Total ESG percentile||44.04|
|Environmental score percentile||8|
|Social score percentile||8|
|Governance score percentile||8|
|Level of controversy||3|
Lloyds Banking Group share dividends
Dividend yield: 2.44% of stock value
Forward annual dividend yield: 2.44% of stock value
Dividend payout ratio: 18.73% of net profits
Lloyds Banking Group has recently paid out dividends equivalent to 2.44% of its share value annually.
Lloyds Banking Group has paid out, on average, around 18.73% of recent net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 2.44% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), shareholders could enjoy a 2.44% return on their shares, in the form of dividend payments. In Lloyds Banking Group's case, that would currently equate to about 1.2p per share.
While Lloyds Banking Group's payout ratio might seem low, this can signify that the company is investing more in its future growth.
The latest dividend was paid out to all shareholders who bought their shares by 4 August 2021 (the "ex-dividend date").
Lloyds Banking Group's dividend yield is perhaps best considered in relation to those of similar companies.
- OSB Group (OSB.LSE): 3.40% (3.4% forward annual dividend yield)
- The Royal Bank of Scotland Group (RBS.LSE): 5.74% (5.74% forward annual dividend yield)
- Barclays (BARC.LSE): 1.39% (1.39% forward annual dividend yield)
- HSBC (HSBA.LSE): 3.08% (3.08% forward annual dividend yield)
Have Lloyds Banking Group's shares ever split?
Lloyds Banking Group's shares were split on a 41:40 basis on 10 May 2009. So if you had owned 40 shares the day before before the split, the next day you'd have owned 41 shares. This wouldn't directly have changed the overall worth of your Lloyds Banking Group shares – just the quantity. However, indirectly, the new 2.4% lower share price could have impacted the market appetite for Lloyds Banking Group shares which in turn could have impacted Lloyds Banking Group's share price.
Share price volatility
Over the last 12 months, Lloyds Banking Group's shares have ranged in value from as little as 32.2362p up to 56.0009p. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (LSE average) beta is 1, while Lloyds Banking Group's is 1.4256. This would suggest that Lloyds Banking Group's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).
To put Lloyds Banking Group's beta into context you can compare it against those of similar companies.
- OSB Group (OSB.LSE): 1.41
- The Royal Bank of Scotland Group (RBS.LSE): 1.5064
- Barclays (BARC.LSE): 1.4922
- HSBC (HSBA.LSE): 0.6842
Shares similar to Lloyds Banking Group
Lloyds Banking Group in the news
United Living - Book donation made to primary community special school in Luton
Fitch Affirms Lloyds Banking Group at 'A'; Outlook Stable
United Living Property Services supporting young people into employment
Frequently asked questions
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