3 things I think could boost the Lloyds share price in 2020

first_img I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Alan Oscroft | Friday, 28th February, 2020 | More on: LLOY I’ve recently been thinking about the bear case for Lloyds Banking Group (LSE: LLOY) in 2020. And though I really see the bank as a strong long-term income buy, it could be in for a rockier ride in the short term.But could anything turn the tables in 2020 and lead to a Lloyds share price rally? Here are three things I think might do the job.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…BrexitThe most obvious thing, I think, would be a Brexit trade deal breakthrough.Lloyds doesn’t have direct exposure to European banking any more, having refocused itself as a UK retail bank. But that does make it dependent on the UK economy and on the levels of mortgages and business loans it can offer. And the outlook for the UK economy isn’t looking great right now.If we suffer poor (or no) growth, fewer businesses will chase funding, and fewer people will want to buy new houses. All that would weaken business for Lloyds, depress its profits, and perhaps even threaten its precious dividend.A trade deal with Europe could well be the thing that makes the difference between modest economic growth and recession. So come on Boris, for the sake of our dividends…DividendSpeaking of dividends, one of the things Lloyds’ bears fear is a cut. The bank was forced to halt its share buyback programme when PPI claims climbed way above the levels we’d been expecting. But that’s over now.And there’s one positive I take from it, considering some commentators were predicting a dividend cut and a share price collapse should the PPI total rise too high. Well, it reached an eye-watering £21.9bn, but the share price didn’t collapse. And there’s no sign of a dividend cut.In fact, Lloyds has just lifted its 2019 dividend by 5% to 3.37p per share. Not only wasn’t it cut, it was raised by more than twice the rate of inflation.Still, other things could impact on the dividend, like proposed new legislation requiring even better levels of liquidity in the future. But on that score, we’re out of the EU now, so there should be less pressure from that direction.The longer we get into 2020 without a dividend cut, the more I can see the share price gaining ground.Consumer debtCould a consumer credit bust be a cause of dividend pressure? On top of falling mortgages and business loans, a rising tide of consumer debts going bad could turn the screw on the dividend.But I saw nothing to worry me on that score in the 2019 results. And while I think a continued economic downturn almost certainly will lead to increased bad debts, I don’t see a credit bust.The main reason is there hasn’t been a credit boom. Since the banking crisis, UK discretionary spending has remained very restrained — just ask any high street retailer how things are going.Big names going bust, or struggling, really does feed back to the spending public. And when we see companies like Thomas Cook failing, it puts is in a pessimistic mood and helps keep our hands in our pockets.The more we don’t see escalating bad consumer credit, the more I think we could see improving share price strength. 3 things I think could boost the Lloyds share price in 2020 See all posts by Alan Oscroft Image source: Getty Images I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.center_img Our 6 ‘Best Buys Now’ Shares Alan Oscroft owns shares of Lloyds Banking Group. The Motley Fool UK has recommended Lloyds Banking Group. 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. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. “This Stock Could Be Like Buying Amazon in 1997” Enter Your Email Address Simply click below to discover how you can take advantage of this.last_img


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