3 Shares Trading Near 52-Week Highs: Royal Dutch Shell Plc, Lloyds Banking Group PLC And Rolls-Royce Holding PLC

Market statistics show that Royal Dutch Shell Plc (LON:RDSB), Lloyds Banking Group PLC (LON:LLOY) and Rolls-Royce Holding PLC (LON:RR) are all trading within 4% of a high for the year. Could they rise further?

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Royal Dutch Shell

For decades, Royal Dutch Shell (LSE: RDSB)(NYSE: RDS-B.US) has been synonymous with scale, success and dependability.

This is manifested in the company’s dividend to shareholders. In 2012, Shell’s payout was raised by 2.4% to $1.72 per share. At today’s price, that puts Shell on an historic yield of 4.8%. Analysts are forecasting a 7.2% dividend increase this year, pushing the payout to 5.2%.

Profit growth is expected to outpace this, putting the shares on a price-to-earnings (P/E) ratio of 8.6 for the year. That’s a big discount to the average FTSE share.

Shell’s share price is incredibly stable. While it may be within touching distance of a new high, the shares are just 9% above their low for the year.

Lloyds Banking Group

In recent weeks, Lloyds Banking Group (LSE: LLOY)(NYSE: LYG.US) has been trading at around its highest level since October 2010.

Analysts have been increasing their estimates for the bank’s 2013 profits. Three months ago, the consensus was for 4.26p of earnings per share (EPS) this year. That figure is now 4.32p. This puts the shares on a P/E for the year of 14.8. That’s slightly ahead of the average price for a FTSE 100 share.

It is clear from this rating that investors are counting on a UK economic recovery. I don’t disagree with this analysis but it does not leave much room for disappointment. If the economy does stumble, Lloyds shares would be hit hard.

Rolls Royce

Last week, aero-engine company Rolls Royce (LSE: RR) issued its half-year results. Earnings per share rose 27% and the dividend was increased 13%. This news pushed the shares to an all-time high.

It is not just the profit that Rolls makes that keeps its share price up. The company is a world-leader. This status helps secure Rolls’ future pricing power.

Investors regard for the company is encapsulated in its share price. With EPS of 67.5p expected this year, Rolls shares are trading on a P/E of 17.8 times forecast earnings.

The dividend is expected to be increased for an eighth year running, pushing the yield to 1.8%.

If you think that is too little, then take a look at what a top dividend investor has been buying. Fund manager Neil Woodford is one of the very best in the business. Our free report “8 Shares Held By Britain’s Super Investor” gives the lowdown on his top income picks. Just click here to start reading today.

> David does not own shares in any of the companies mentioned.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

More on Investing Articles

Investing Articles

Is this one of the FTSE 100’s best-value growth shares?

Looking for great-value recovery shares to buy today? Based on City forecasts, this could be one of the best that…

Read more »

Investing Articles

Will the Tesco share price hit a 10-year high in 2024?

Up from 200p less than two years ago, the Tesco share price has enjoyed impressive growth lately. Now I'm considering…

Read more »

Electric cars charging in station
Investing Articles

Where will Tesla stock be in 5 years? Here’s what the experts say

The analysts' outlook for Tesla stock in the next few years seems to be all over the place, as the…

Read more »

Man writing 'now' having crossed out 'later', 'tomorrow' and 'next week'
Investing Articles

Nearing its 12-year low, this FTSE growth stock could be the bargain of the year!

Harvey Jones has happy memories of owning this FTSE 100 growth stock. Now he's wondering whether to take a trip…

Read more »

Investing Articles

BT share price: a bargain or one to avoid?

This Fool has been keeping tabs on the BT share price. Despite looking cheap, he's steering clear of the stock…

Read more »

British flag, Big Ben, Houses of Parliament and British flag composition
Investing Articles

3 reasons why I predict UK shares will soar over the next 12 months!

Our writer believes there are plenty of reasons why UK shares will do well over the next year or so.…

Read more »

Investing Articles

Are these the best stocks to buy after the UK election?

With Labour now leading the UK, change is on the horizon. I'm considering the best stocks to buy based on…

Read more »

Investing Articles

1,000 shares in this FTSE 100 stalwart would give me £525 of dividends!

The FTSE 100 is packed full of stocks offering sizeable dividend yields, but I feel this one is the pick…

Read more »