Latest news with #ArbuthnotBankingGroup
Yahoo
15-06-2025
- Business
- Yahoo
With Lloyds shares red hot, investors should consider this AIM alternative
As Lloyds (LSE:LLOY) shares edges closer to what many investors would consider fair value, my attention is turning to alternative options in the UK banking sector. One AIM-listed name that stands out is Arbuthnot Banking Group (LSE:ARBB). It's much smaller, with a markedly different profile, but appears to be an attractive proposition. And while Lloyds remains a staple for income and stability, Arbuthnot offers a blend of value, growth, and yield. This could appeal to investors seeking something beyond the big high street banks. Looking at the numbers, the contrast between the two banks is striking. In 2025, Arbuthnot is forecast to deliver earnings per share (EPS) of 129.6p. At a share price of around 950p, this equates to a price-to-earnings (P/E) ratio of 7.3. This is a notable discount to Lloyds. The larger bank is expected to post EPS of 6.5p and trades on a forward P/E of 11.8 for the same year. Moving to 2026, Arbuthnot's EPS is forecast to rise to 152.2p. This brings the P/E down to just 6.2. Meanwhile, Lloyds' EPS is expected to reach 9.1p, reducing its P/E to 8.4. By 2027, Arbuthnot's P/E is projected to fall to 5.5, compared to Lloyds at 7. Arbuthnot also wins on the dividend yield. The bank's dividend per share is forecast at 53p in 2025, rising to 57p in 2026 and 61p in 2027. That translates to a yield of 5.6% in 2025, moving up to 6% in 2026 and 6.4% in 2027. Lloyds, by comparison, is expected to pay out 3.4p per share in 2025, 4p in 2026, and 4.6p in 2027, for yields of 4.5%, 5.4%, and 6%, respectively. While Lloyds' income is well covered by earnings, Arbuthnot's payout ratios are similarly conservative. The latter's dividend cover is expected to remain above 1.9 times through the forecast period. Moreover, Arbuthnot trades at a price-to-book ratio of just 0.54 in 2024, well below Lloyds at 0.75, and both are below the sector average, suggesting value in the shares. Arbuthnot's revenue is expected to climb from £179.5m in 2024 to £182.6m in 2025, £193.7m in 2026, and £209.7m in 2027. Lloyds, meanwhile, is forecast to grow revenue from £18.4bn in 2024 to £19.4bn in 2025, and £22.1bn by 2027. In other words, I think we're looking at a similar growth story but just a very different size. While the absolute numbers are not comparable, Arbuthnot's growth rate is strong, and it continues to grow its loan book and deposit base at a healthy clip. Recent results show deposits rising 17% year on year, with a stable loan book and a loan-to-deposit ratio of just 57%. By comparison, Lloyds's is over 90%. However, Arbuthnot's size may heighten risks. It operates in a more specialised, relationship-driven niche and the economic outlook is uncertain, with the UK economy dragging and regulatory changes on the horizon. Nonetheless, this stock certainly interests me. Investors may want to consider this alternative. The post With Lloyds shares red hot, investors should consider this AIM alternative appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool James Fox has positions in Lloyds Banking Group Plc. The Motley Fool UK has recommended Lloyds Banking Group Plc. 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. Motley Fool UK 2025
Yahoo
13-06-2025
- Business
- Yahoo
This bank trades at 7.3 times earnings and has a 5.6% dividend yield… I'm interested
Arbuthnot Banking Group (LSE:ARBB) could be appealing to investors seeking a combination of value and income. It addition to its sizeable yield, it's trading at earnings multiples that are slightly below its blue-chip peers. What's more, it might not be getting the attention it deserves. It hasn't been covered on Fool UK for six years… maybe it's simply overlooked. The group's valuation metrics suggest it is trading at a discount relative to its earnings and book value, which may appeal to value-oriented investors. Specifically, the forecasted price-to-earnings (P/E) ratio is 7.3 times for 2025, improving to 6.2 times in 2026. These relatively low multiples indicate that the market may be underestimating the bank's earning potential in the near term. The bank's price-to-book ratio was just 0.53 in 2024. Once again, this suggests it's simply undervalued. This tells us that shares are trading well below the group's net asset value. Coupled with this, Arbuthnot is expected to pay dividends of 53p per share in 2025 and 57p in 2026. This translates to attractive dividend yields of approximately 5.6% and 6%, respectively, based on the current share price of £9.48. Earnings per share (EPS) projections show a slight dip in 2025 to 129.6p, followed by a rebound to 152.2p in 2026, reflecting a return to profit growth after a modest slowdown. Net income is forecast to increase from £21.3m to £25.1m over this period. This valuation discount offers a margin of safety, which could protect investors against downside risk while providing potential for re-rating if the company's profitability improves. Arbuthnot has been actively investing in its infrastructure and technology, positioning itself for future growth. Recent expansions include moving to larger London premises and bolstering its specialist lending and wealth management divisions. Management has also taken steps to mitigate interest rate risk by shifting towards fixed-rate lending and investing in high-quality securities. This strategy is designed to protect the bank's margins in a potentially falling interest rate environment, as liabilities tend to reprice faster than assets. Despite these positives, there are risks investors should consider. The bank's earnings remain sensitive to interest rate fluctuations. Although management has taken measures to reduce this risk, unexpected changes in rates could still impact profitability. Credit risk is another concern. While the loan portfolio is well-secured, a worsening economic environment could increase defaults, especially among clients flagged as watchlist risks. The metrics look good and I'm fairly confident about the state of British banking at this time. The economy is growing slowly and interest rates have been falling at a steady pace, allowing for a gentle unwinding of strategic hedges. I'm also interested by the consensus price target which sits 62% above the current share price. While I'm not going to buy straightaway, I'm going to add this one to my watchlist and continue to look at the data. The post This bank trades at 7.3 times earnings and has a 5.6% dividend yield… I'm interested appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool James Fox 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. Motley Fool UK 2025
Yahoo
09-06-2025
- Business
- Yahoo
3 UK Dividend Stocks Offering Yields Up To 5.2%
Amidst recent challenges in the UK market, particularly with the FTSE 100 facing pressure from weak trade data out of China, investors are increasingly looking towards dividend stocks as a potential source of stability and income. In such an environment, selecting stocks that offer reliable dividends can be a prudent strategy for those seeking to navigate market volatility while benefiting from steady cash flows. Name Dividend Yield Dividend Rating WPP (LSE:WPP) 7.05% ★★★★★★ Treatt (LSE:TET) 3.05% ★★★★★☆ OSB Group (LSE:OSB) 6.76% ★★★★★☆ NWF Group (AIM:NWF) 4.67% ★★★★★☆ Man Group (LSE:EMG) 7.19% ★★★★★☆ Keller Group (LSE:KLR) 3.30% ★★★★★☆ James Latham (AIM:LTHM) 7.02% ★★★★★☆ Grafton Group (LSE:GFTU) 3.66% ★★★★★☆ Dunelm Group (LSE:DNLM) 6.58% ★★★★★☆ 4imprint Group (LSE:FOUR) 5.08% ★★★★★☆ Click here to see the full list of 58 stocks from our Top UK Dividend Stocks screener. We'll examine a selection from our screener results. Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Arbuthnot Banking Group PLC, along with its subsidiaries, offers private and commercial banking products and services in the United Kingdom, with a market cap of £152.38 million. Operations: Arbuthnot Banking Group PLC generates revenue through several segments, including Wealth Management (£13.67 million), Asset Alliance Group (£15.34 million), Renaissance Asset Finance (£12.56 million), Banking excluding Wealth Management (£95.64 million), and Arbuthnot Commercial Asset Based Lending (£19.93 million). Dividend Yield: 5.2% Arbuthnot Banking Group has increased its dividend to 69 pence per share for 2024, up from 46 pence in 2023. Despite a decline in net income to £24.85 million from £35.38 million, the company's payout ratio remains low at 32.2%, indicating dividends are well covered by earnings. However, its dividend history is marked by volatility and unreliability over the past decade, and it trades below estimated fair value with a high level of bad loans at 3.4%. Click to explore a detailed breakdown of our findings in Arbuthnot Banking Group's dividend report. In light of our recent valuation report, it seems possible that Arbuthnot Banking Group is trading behind its estimated value. Simply Wall St Dividend Rating: ★★★★★☆ Overview: Grafton Group plc is a distributor and seller of building materials and construction-related products operating in Ireland, the United Kingdom, the Netherlands, Finland, and Spain with a market cap of £1.97 billion. Operations: Grafton Group's revenue is primarily derived from its UK Distribution segment (£780.78 million), Ireland Distribution (£632.81 million), Netherlands Distribution (£337.58 million), Retailing (£261.06 million), Finland Distribution (£131.76 million), Manufacturing (£122.16 million), and Spain Distribution (£29.66 million). Dividend Yield: 3.7% Grafton Group's recent approval of a 26.5 pence final dividend highlights its commitment to rewarding shareholders, supported by a reasonable payout ratio of 60.8% and strong cash flow coverage at 36%. The company's revenue growth, up to £773.1 million for early 2025, underscores operational strength contributing to sustainable dividends. While the dividend yield of 3.66% is below top-tier UK payers, it remains reliable and stable over the past decade, trading at a discount to estimated fair value. Navigate through the intricacies of Grafton Group with our comprehensive dividend report here. According our valuation report, there's an indication that Grafton Group's share price might be on the cheaper side. Simply Wall St Dividend Rating: ★★★★★☆ Overview: RS Group plc, with a market cap of £2.70 billion, is involved in the distribution of maintenance, repair, and operations products and service solutions across various countries including the United Kingdom, the United States, France, Germany, Italy, Mexico and internationally. Operations: RS Group plc generates revenue from its Own-Brand Products (£400.40 million) and Other Product and Service Solutions (£2.50 billion). Dividend Yield: 3.9% RS Group's dividend yield of 3.94% is lower than top-tier UK payers but remains reliable and stable over the past decade, supported by a sustainable payout ratio of 69% and cash flow coverage at 50.6%. The company recently increased its dividend by 2%, reflecting steady growth. Despite a slight decline in sales to £2.90 billion, RS trades below its estimated fair value and maintains strong earnings forecasts, bolstered by strategic alliances in automation sectors. Take a closer look at RS Group's potential here in our dividend report. The valuation report we've compiled suggests that RS Group's current price could be quite moderate. Explore the 58 names from our Top UK Dividend Stocks screener here. Shareholder in one or more of these companies? Ensure you're never caught off-guard by adding your portfolio in Simply Wall St for timely alerts on significant stock developments. Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include AIM:ARBB LSE:GFTU and LSE:RS1. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
02-05-2025
- Business
- Yahoo
3 UK Dividend Stocks Yielding Up To 5.3%
In the face of recent challenges in the UK market, highlighted by the FTSE 100's decline due to weak trade data from China and falling commodity prices, investors are increasingly seeking stable income sources. Amidst this backdrop, dividend stocks can offer a reliable stream of income, making them an attractive option for those looking to navigate uncertain economic conditions while potentially benefiting from consistent payouts. Name Dividend Yield Dividend Rating WPP (LSE:WPP) 6.79% ★★★★★★ Man Group (LSE:EMG) 7.81% ★★★★★☆ Keller Group (LSE:KLR) 3.45% ★★★★★☆ Treatt (LSE:TET) 3.28% ★★★★★☆ 4imprint Group (LSE:FOUR) 5.82% ★★★★★☆ DCC (LSE:DCC) 4.09% ★★★★★☆ NWF Group (AIM:NWF) 4.70% ★★★★★☆ Big Yellow Group (LSE:BYG) 4.43% ★★★★★☆ James Latham (AIM:LTHM) 7.55% ★★★★★☆ OSB Group (LSE:OSB) 7.01% ★★★★★☆ Click here to see the full list of 60 stocks from our Top UK Dividend Stocks screener. Let's review some notable picks from our screened stocks. Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Arbuthnot Banking Group PLC, along with its subsidiaries, offers private and commercial banking products and services in the United Kingdom, with a market cap of £150.35 million. Operations: Arbuthnot Banking Group PLC generates revenue from several segments including Wealth Management (£13.67 million), Asset Alliance Group (£15.34 million), Renaissance Asset Finance (£12.56 million), Banking excluding Wealth Management (£95.64 million), and Arbuthnot Commercial Asset Based Lending (£19.93 million). Dividend Yield: 5.3% Arbuthnot Banking Group recently announced a total dividend of 69 pence per share for 2024, up from 46 pence in 2023, indicating growth despite historical volatility. The payout ratio is low at 32.2%, suggesting dividends are well-covered by earnings. However, the dividend yield of 5.31% is lower than top UK payers and past payments have been unreliable. The bank's high level of bad loans (3.4%) may pose risks to future stability. Click here to discover the nuances of Arbuthnot Banking Group with our detailed analytical dividend report. According our valuation report, there's an indication that Arbuthnot Banking Group's share price might be on the cheaper side. Simply Wall St Dividend Rating: ★★★★★☆ Overview: IG Group Holdings plc is a fintech company that operates in the online trading industry globally, with a market cap of £3.70 billion. Operations: IG Group Holdings plc generates revenue from its brokerage segment, amounting to £1.01 billion. Dividend Yield: 4.4% IG Group Holdings offers a reliable dividend yield of 4.39%, with consistent growth and stability over the past decade. The dividends are well-covered by both earnings and cash flows, with payout ratios of 47.5% and 28.6%, respectively, ensuring sustainability. Although its yield is below the top UK payers' average, IGG trades at a significant discount to its estimated fair value, suggesting good relative value within its industry despite lower yields compared to peers. Dive into the specifics of IG Group Holdings here with our thorough dividend report. The valuation report we've compiled suggests that IG Group Holdings' current price could be quite moderate. Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Unite Group PLC owns, manages, and develops purpose-built student accommodation facilities for the higher education sector in the United Kingdom with a market cap of £4.26 billion. Operations: Unite Group PLC generates revenue of £299.30 million from its operations in the purpose-built student accommodation sector within the UK. Dividend Yield: 4.3% Unite Group's dividend, though lower than the top 25% in the UK at 4.28%, is covered by earnings and cash flows with payout ratios of 57.4% and 87.3%. Despite a volatile dividend history, recent increases show a commitment to growth, with a proposed final dividend of 24.9 pence per share for 2024—a 5% rise from the previous year. Trading below its estimated fair value suggests potential relative value despite past instability in payouts. Delve into the full analysis dividend report here for a deeper understanding of Unite Group. Insights from our recent valuation report point to the potential undervaluation of Unite Group shares in the market. Investigate our full lineup of 60 Top UK Dividend Stocks right here. Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up. Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include AIM:ARBB LSE:IGG and LSE:UTG. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
02-05-2025
- Business
- Yahoo
3 UK Dividend Stocks Yielding Up To 5.3%
In the face of recent challenges in the UK market, highlighted by the FTSE 100's decline due to weak trade data from China and falling commodity prices, investors are increasingly seeking stable income sources. Amidst this backdrop, dividend stocks can offer a reliable stream of income, making them an attractive option for those looking to navigate uncertain economic conditions while potentially benefiting from consistent payouts. Name Dividend Yield Dividend Rating WPP (LSE:WPP) 6.79% ★★★★★★ Man Group (LSE:EMG) 7.81% ★★★★★☆ Keller Group (LSE:KLR) 3.45% ★★★★★☆ Treatt (LSE:TET) 3.28% ★★★★★☆ 4imprint Group (LSE:FOUR) 5.82% ★★★★★☆ DCC (LSE:DCC) 4.09% ★★★★★☆ NWF Group (AIM:NWF) 4.70% ★★★★★☆ Big Yellow Group (LSE:BYG) 4.43% ★★★★★☆ James Latham (AIM:LTHM) 7.55% ★★★★★☆ OSB Group (LSE:OSB) 7.01% ★★★★★☆ Click here to see the full list of 60 stocks from our Top UK Dividend Stocks screener. Let's review some notable picks from our screened stocks. Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Arbuthnot Banking Group PLC, along with its subsidiaries, offers private and commercial banking products and services in the United Kingdom, with a market cap of £150.35 million. Operations: Arbuthnot Banking Group PLC generates revenue from several segments including Wealth Management (£13.67 million), Asset Alliance Group (£15.34 million), Renaissance Asset Finance (£12.56 million), Banking excluding Wealth Management (£95.64 million), and Arbuthnot Commercial Asset Based Lending (£19.93 million). Dividend Yield: 5.3% Arbuthnot Banking Group recently announced a total dividend of 69 pence per share for 2024, up from 46 pence in 2023, indicating growth despite historical volatility. The payout ratio is low at 32.2%, suggesting dividends are well-covered by earnings. However, the dividend yield of 5.31% is lower than top UK payers and past payments have been unreliable. The bank's high level of bad loans (3.4%) may pose risks to future stability. Click here to discover the nuances of Arbuthnot Banking Group with our detailed analytical dividend report. According our valuation report, there's an indication that Arbuthnot Banking Group's share price might be on the cheaper side. Simply Wall St Dividend Rating: ★★★★★☆ Overview: IG Group Holdings plc is a fintech company that operates in the online trading industry globally, with a market cap of £3.70 billion. Operations: IG Group Holdings plc generates revenue from its brokerage segment, amounting to £1.01 billion. Dividend Yield: 4.4% IG Group Holdings offers a reliable dividend yield of 4.39%, with consistent growth and stability over the past decade. The dividends are well-covered by both earnings and cash flows, with payout ratios of 47.5% and 28.6%, respectively, ensuring sustainability. Although its yield is below the top UK payers' average, IGG trades at a significant discount to its estimated fair value, suggesting good relative value within its industry despite lower yields compared to peers. Dive into the specifics of IG Group Holdings here with our thorough dividend report. The valuation report we've compiled suggests that IG Group Holdings' current price could be quite moderate. Simply Wall St Dividend Rating: ★★★★☆☆ Overview: Unite Group PLC owns, manages, and develops purpose-built student accommodation facilities for the higher education sector in the United Kingdom with a market cap of £4.26 billion. Operations: Unite Group PLC generates revenue of £299.30 million from its operations in the purpose-built student accommodation sector within the UK. Dividend Yield: 4.3% Unite Group's dividend, though lower than the top 25% in the UK at 4.28%, is covered by earnings and cash flows with payout ratios of 57.4% and 87.3%. Despite a volatile dividend history, recent increases show a commitment to growth, with a proposed final dividend of 24.9 pence per share for 2024—a 5% rise from the previous year. Trading below its estimated fair value suggests potential relative value despite past instability in payouts. Delve into the full analysis dividend report here for a deeper understanding of Unite Group. Insights from our recent valuation report point to the potential undervaluation of Unite Group shares in the market. Investigate our full lineup of 60 Top UK Dividend Stocks right here. Are any of these part of your asset mix? Tap into the analytical power of Simply Wall St's portfolio to get a 360-degree view on how they're shaping up. Simply Wall St is a revolutionary app designed for long-term stock investors, it's free and covers every market in the world. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include AIM:ARBB LSE:IGG and LSE:UTG. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
