How to buy Lloyds Banking Group (LLOY) shares

Learn how to easily invest in Lloyds Banking Group shares.

Lloyds Banking Group plc
LSE: LLOY - GBX
BANKS-REGIONAL
p45.97
+p0.74 (+1.63%)

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

  1. Choose a platform. If you're a beginner, our share-dealing table below can help you choose.
  2. Open your account. You'll need your ID, bank details and national insurance number.
  3. Confirm your payment details. You'll need to fund your account with a bank transfer, debit card or credit card.
  4. Search the platform for stock code: LLOY in this case.
  5. Research Lloyds Banking Group shares. The platform should provide the latest information available.
  6. Buy your Lloyds Banking Group shares. It's that simple.
The whole process can take as little as 15 minutes.

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 49.78p, which is 10.06% down on its pre-crash value of 55.35p and 66.95% 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 £880.28.

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

Information last updated 2021-07-09.
Open45.755p
High46.74p
Low45.59p
Close46.71p
Previous close45.615p
Change1.095p
Change %2.4005%
Volume129,685,919
Information last updated 2021-07-22.
52-week range23.5819p - 50.56p
50-day moving average47.1939p
200-day moving average42.7415p
Wall St. target price75.37p
PE ratio16.7519
Dividend yield0.6p (1.31%)
Earnings per share (TTM)2.7p
Promoted
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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
eToro Free Stocks logo £0 $200 £0.00
£233.55 total
Capital at risk
Fineco logo £0 No minimum £0.00
£233.55 total
Capital at risk
Freetrade logo £0 No minimum £0.00
£233.55 total
Capital at risk
Degiro Share Dealing logo £0 £0.01 £1.78
£235.33 total
Capital at risk
Hargreaves Lansdown Fund and Share Account logo £0 £1 £11.95
£245.50 total
Capital at risk
interactive investor Trading Account logo £9.99 per month No minimum £7.99
£241.54 total
Capital at risk
Halifax Share Dealing Account logo £36 per year £20 £9.50
£243.05 total
Capital at risk

Full comparison of share dealing platforms

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.

Lloyds Banking Group price performance over time

Historical closes compared with the last close of 46.71p

1 week (2021-07-12) -0.98%
1 month (2021-06-23) -0.62%

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.

P/E ratio

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 17x. In other words, Lloyds Banking Group shares trade at around 17x 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.

PEG ratio

Lloyds Banking Group's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 0.2361. 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.

Financials

Revenue TTM £12.6 billion
Operating margin TTM 28.16%
Gross profit TTM £11 billion
Return on assets TTM 0.27%
Return on equity TTM 4.51%
Profit margin 17.78%
Book value 0.695p
Market capitalisation £32.1 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.

Environmental score

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.

Social score

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.

Governance score

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.

Controversy score

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

Lloyds Banking Group plc was last rated for ESG on: 2019-01-01.

Total ESG score 29.76
Total ESG percentile 44.04
Environmental score 8.82
Environmental score percentile 8
Social score 15.38
Social score percentile 8
Governance score 16.56
Governance score percentile 8
Level of controversy 3

Lloyds Banking Group share dividends

1.3%

Dividend yield: 1.31% of stock value

1.3%

Forward annual dividend yield: 1.25% of stock value

40.1%

Dividend payout ratio: 40.14% of net profits

Lloyds Banking Group has recently paid out dividends equivalent to 1.31% of its share value annually.

Lloyds Banking Group has paid out, on average, around 40.14% of recent net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 1.25% 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 1.25% return on their shares, in the form of dividend payments. In Lloyds Banking Group's case, that would currently equate to about 0.6p per share.

While Lloyds Banking Group's payout ratio might seem fairly standard, it's worth remembering that it may be investing much of the rest of its net profits in future growth.

The latest dividend was paid out to all shareholders who bought their shares by 14 April 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): 3.15% (3.14% forward annual dividend yield)
  • The Royal Bank of Scotland Group (RBS.LSE): 5.74% (5.74% forward annual dividend yield)
  • Barclays (BARC.LSE): 0.60% (0.6% forward annual dividend yield)
  • HSBC (HSBA.LSE): 3.74% (2.69% 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 23.5819p up to 50.56p. A popular way to gauge a stock's volatility is its "beta".

LLOY.LSE volatility(beta: 1.42)Avg. volatility(beta: 1.00)LowHigh

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 1.4162. 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.

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