Public Protests Don’t Put Me Off Investing In Barclays PLC

With the latest public outcry of Barclays PLC (LON: BARC) creating yet more negative news flow on the company, I’m as bullish as ever.

| 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.

Over the past five years, banks have been on the receiving end of a substantial amount of public anger. For instance, the ‘Occupy’ campaign targeted banks, gaining popularity and notoriety in doing so.

Politicians have also used the banks to their advantage — blaming them for the credit crunch when, in reality, it was the framework within which the banks operated that was the problem.

Indeed, if the banks were operating within the rules set by the FSA then surely the banks cannot shoulder the blame? The FSA was created and monitored by the government so surely ultimate blame rests with politicians and not with bankers?

Anyway, suffice to say that a vast proportion of the UK population blames the banks for the crisis and the general feeling among ordinary people is one of substantial dislike towards the banks.

So, news that a petition of 25,000 people (including double Olympic gold medallist Mo Farah) has been established should not faze the bank or its shareholders. It is merely ‘the norm’.

The petition, of course, surrounds the decision by Barclays (LSE: BARC) (NYSE: BCS.US) to terminate banking services for 250 money-transfer companies amid fears over money laundering and terrorist financing.

Although around 25 money-transfer agencies will still be able to bank with Barclays, none facilitates payment to Somalia (which is where the link with Somali-born Mo Farah comes in).

As mentioned, dislike of banks is nothing new, and so negative headlines such as this should be viewed as an opportunity to buy rather than a reason to sell.

In addition, Barclays currently yields 2.5%, with dividends per share expected to increase to 11p in 2014. This would equate to a yield of 3.9% at the current share price. Furthermore, trading on a price-to-earnings (P/E) ratio of just 8.2 versus a sector P/E of 18.9 highlights the relative value that Barclays offers.

Of course, you may not wish to wait until 2014 to be provided with the above yield. You may be an income-seeking investor who needs income now. In that case, I would recommend that you take a look at The Motley Fool’s Top Income Share Of 2013.

It’s completely free to take a look and, at a solid 5% yield, could be just what you’re searching for when interest rates offer little in the way of income. Click here to view the exclusive report.

> Peter owns shares in Barclays.

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

Passive income text with pin graph chart on business table
Investing Articles

Yields of up to 7%! I’d consider boosting my income with these FTSE dividend stocks

The London market has some decent-looking dividend stocks right now, and I’m tempted by these two for growing income streams.

Read more »

Young mixed-race couple sat on the beach looking out over the sea
Investing Articles

I’d put £20K in an ISA now to target a £1,900 monthly second income in future!

Christopher Ruane shares why he thinks a long-term approach to investing and careful selection of shares could help him build…

Read more »

Mature couple at the beach
Investing Articles

6 stocks that Fools have been buying!

Our Foolish freelancers are putting their money where their mouths are and buying these stocks in recent weeks.

Read more »

Black woman using loudspeaker to be heard
Investing Articles

I was right about the Barclays share price! Here’s what I think happens next

Jon Smith explains why he still feels the Barclays share price is undervalued and flags up why updates on its…

Read more »

Investing Articles

Where I’d start investing £8,000 in April 2024

Writer Ben McPoland highlights two areas of the stock market that he would target if he were to start investing…

Read more »

View of Tower Bridge in Autumn
Investing Articles

Ahead of the ISA deadline, here are 3 FTSE 100 stocks I’d consider

Jon Smith notes down some FTSE 100 stocks in sectors ranging from property to retail that he thinks could offer…

Read more »

Young female business analyst looking at a graph chart while working from home
Investing Articles

Why I think Rolls-Royce shares will pay a dividend in 2024

Stephen Wright thinks Rolls-Royce shares are about to pay a dividend again. But he isn’t convinced this is something investors…

Read more »

Investing Articles

1 of the best UK shares to consider buying in April

Higher gold prices and a falling share price have put this FTSE 250 stock on Stephen Wright's list of UK…

Read more »