Image source: Getty Images
A month ago, on April 9, investors grass an 11% inheritance FTSE 100 in just seven days.
In the event that anyone fails to hit this, this piercing fall was caused by the tariff announcement of President Trump’s “Liberation Day” on April 2.
At that time, I did not expect the market to return to a positive territory in a few weeks. But that’s what we’re there. The investment 10,000 pounds in FTSE 100 on January 2 would be worth 10,620 pounds on the closed market on May 7, including dividends.
I must admit that the FTSE 100 is still below the ups noticeable in March. But a return of 6.2% in just over four months is not in my opinion a bad result. I won it as a victory for a long -term approach.
FTSE stocks to consider the purchase
When the stock indicator, such as FTSE 100 moves up or down, usually reflects a much wider range of individual share price movements in the index.
We certainly saw it this year. So far, the most crucial division in FTSE 100 has increased by over 70%this year. The largest decrease dropped by almost 30%.
It is possible that investors to choose shares involves finding actions that have positive prospects and are still budget-friendly enough to ensure further profits.
I think one company suits this description Lloyds Banking Group (LSE: lloy).
This year, Lloyds shares have increased by a hearty 33%, but in my opinion there are several good reasons to consider this shares as possible.
Placed in terms of long -term growth?
As the largest mortgage lender in Great Britain, Lloyds can benefit from any growth on the housing market. This week, Bank of England interest rates can support improve mortgage accessibility and encourage buyers of houses to get involved in novel offers.
Looking further, the bank is also working on expanding its market share in areas less dependent on interest income. They include property management and commercial banking services.
Perhaps the main risk is now Lloyds’ exposure to the review of the FCA motor finance committee. Lloyds has a high presence in this sector thanks to its Black Horse industry. The management has already postponed 1.15 billion GBP to cover potential compensation costs and additional general costs.
I am sure that the bank will be able to manage all likely costs. But until we receive the Supreme Court’s decision regarding the payment of commissions that were made without the consent of the clients, you cannot know the likely influence.
The right time to buy?
Warren Buffett once said: “The future is never clear; you pay a very high price on the stock exchange for a joyful consensus”.
Buffett meant that when everyone is ecstatic and confident towards the company, it is often very steep.
Lloyds are not as budget-friendly as in January. But the bank’s balance looks hearty for me, and my amounts suggest that 5% dividend performance should be secure.
Analysts expect the dividend to raise by a massive 20% in 2026 – if it is correct, it can give 6% profitability of shares purchased at current levels.
To sum up, I think that Lloyds shares remain attractive and it is worth considering the purchase of income investors.