Yields have consistently topped the FTSE 100 long-term average of 3%-4%. And dividends have steadily risen over the period to help investors grow their passive income ahead of inflation, as this table shows:

So how much in dividends might Barclays’ shares generate over the short-to-medium term? And should I consider buying the Footsie bank today?

A £1,324 income

Speculation of interest rate cuts in the UK and US has propelled Barclays’ share price 36% higher over the last year. Dividend yields have subsequently fallen, but they’re still sitting at an attractive:

• 3.4% for 2026.
• 4.2% for next year.
• 5.1% for 2028.

Based on these projections, someone investing £10,000 in the bank today would enjoy dividends of roughly £340 this year, £434 in 2027, and £549 the year after. That’s assuming all dividends are reinvested to generate even more passive income.

Cumulative dividends over the three years would total a healthy £1,324. But dividends are never guaranteed, and especially in the current uncertain economic climate. How robust are these projections then?

Good signs

Things are looking good based on dividend cover. Between now and 2028, predicted payouts for Barclays’ shareholders are covered between 3.2 times and 3.4 times by expected earnings. That’s miles above the widely-regarded ‘safety’ minimum of 2.

The bank’s strong balance sheet also suggests it’s in good shape to meet near-term dividend forecasts. It’s CET1 capital ratio was a robust 14.1% as of April, which is also supporting a new £500m share buyback scheme.

Barclays has many qualities that make it one of the FTSE 100’s most reliable dividend shares. Essential everyday products such as current accounts and credit cards help provide reliable cash flows. It’s also well diversified by product range, and with retail operations in the UK and US too, it’s better placed to absorb specific risks and keep paying dividends.

Are Barclays’ shares a buy?

Though things look good for dividends, I’m not as positive for Barclays’ share price. In fact, I think the bank’s in danger of a sharp correction.

Its price-to-earnings (P/E) ratio has risen to 8.7 times, above the 10-year average. Does this reflect the threat of surging credit impairments as the Iran war raises inflation and hits economic growth? I’m not so sure.

Revenues could also slump across its retail operations, and a potential stock market correction could spell serious trouble for its investment bank. The vast size of Barclays’ investment bank leaves it especially exposed to a meltdown on financial markets too.

To top things off, Barclays is under increasing strain to grow profits as challenger banks expand their services. Even as interest rates rise to boost margins, traditional banks have a hard fight to grow income and profits in this tough and competitive landscape.

So will I buy Barclays‘ shares for my portfolio? No. I’d rather find other stocks to buy for dividends today.

Should you invest £5,000 in Barclays Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Barclays Plc made the list?

Royston Wild does not hold any positions in the companies mentioned.

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For years, the blue-eagle bank was treated as a cyclical interest-rate trade. But increasingly, the story may be shifting towards something more durable — and that could matter for where the shares go next.

A structurally stronger bank

What stands out to me is that Barclays increasingly looks like a stronger bank operationally, not simply one benefiting from favourable conditions.

First-quarter results pointed in that direction. Group income rose 6% to £8.2bn while return on tangible equity reached 13.5%, despite one-off charges and a period of elevated market volatility. The cost-to-income ratio also improved to 56%, helped by ongoing efficiency measures.

Importantly, strength was broad-based. All five divisions generated double-digit returns, with particularly strong performances in the UK businesses, the US consumer bank and investment banking operations.

I also think the diversification of earnings matters more than many investors appreciate. Investment banking delivered more than £4bn of quarterly income for the first time, while the structural hedge now has £18.3bn of future income locked in through 2028, helping reduce earnings volatility.

To me, this looks less like a bank enjoying a good quarter and more like one beginning to deliver the benefits of a multi-year restructuring effort. But can that translate into stronger shareholder returns?

A different approach to returns

Barclays is not trying to compete with higher-yielding UK banks purely on dividends. The current yield remains relatively modest.

Instead, what I see is a bank increasingly focused on total shareholder returns and disciplined capital allocation.

The 14.1% CET1 ratio supports plans to return at least £15bn to shareholders by 2028, including the latest £500m share buyback.

That matters because buybacks only create value when supported by sustainable capital generation and sensible risk management.

Recent actions suggest a more cautious lending posture too. The group has tightened exposure to certain structured finance counterparties and is reducing lending to more leveraged borrowers where risks appear less attractive.

To me, this reflects a notable shift in priorities. Rather than pursuing growth for its own sake it appears increasingly focused on protecting capital, improving returns and allocating resources more selectively.

What’s the verdict?

Of course, risks remain. The business has meaningful exposure to market activity and the investment banking cycle, which can make earnings less predictable than some domestic-focused peers.

A weaker economy could also pressure loan growth and impairments, particularly if unemployment or corporate stress rises. While credit quality currently appears stable and lending standards are tightening, delivering returns above 14% by 2028 will depend on maintaining discipline through less supportive conditions.

I do not currently own the shares, largely because I already have significant exposure elsewhere in financials and tend to avoid adding after strong runs. Even so, with improving returns, disciplined capital allocation and a clear long-term plan, I think Barclays remains one to consider.

Should you invest £5,000 in Barclays Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Barclays Plc made the list?

Andrew Mackie does not hold any positions in the companies mentioned.

The post Up 41% in 12 months are Barclays shares still worth buying? appeared first on The Twelfth Magpie.

The lion’s share of these gains — £7,767 — came via the share price increase from £3.27 to £4.54. The remainder came from the 8.6p paid in dividends over the period — amounting to £526. Together, these profits represent a 41% total return over the last 12 months.

But, as good as this is, the global banking giant may well do even better going forward, in my view.

Rising dividends expected?

Barclays is not one of the FTSE’s great dividend payers, but its payouts have not been insubstantial over the past five years. And they have been rising.

From 2021 to 2025, they increased from 6p to 8.6p. These generated average annual dividend yields in those years of 3.2%, 4.6%, 5.2%, 3.1%, and 1.8%. The declining returns despite rising payouts underline that dividend yields can go down as a stock’s price rises.

That said, analysts forecast the bank’s dividend returns will rise to 3.3% this year, 4.1% next year, and 5% in 2028. These all compare very favourably to the present FTSE 100 average of 3.1%.

In cash terms, £20,000 of Barclays shares at an average 5% annual yield would make £12,940 in dividends after 10 years. This factors in the dividends being reinvested into the stock, known as dividend compounding. And after 30 years on this basis, the dividends paid out would amount to £69,355!

Share price gains too?

Discounted cash flow (DCF) analysis is often used by professional investors to forecast where a share price is headed. This model identifies the ‘fair value’ of any share, based on the key fundamentals of the underlying business.

Knowing this number is crucial to the profits of long-term investors because historically share prices tend to converge to this fair value over time.

To pinpoint this value, DCF modelling forecasts future cash flows for a business and discounts them back to the present. The more uncertain those forecasts are, the higher the return investors demand, increasing the discount rate.

Analysts’ DCF valuations may differ, depending on their assumptions. Based on my own modelling — including an 8.5% discount rate — Barclays shares look 52% undervalued at their current £4.54 price.

That implies a fair value of £9.46, more than double the current level.

So, if the markets continue to converge toward fair value and my DCF assumptions prove correct, this will mean a £21,684 gain on a £20,000 investment.

Does the core business support such gains?

Underpinning consistent share price and dividend gains are sustained increases in earnings.

A risk to Barclays is a weakening in the UK economy that could push up bad‑debt charges. Another is falling interest rates that could squeeze deposit margins.

That said, analysts forecast that the bank’s earnings will increase by an average of 8.9% a year over the medium term at least.

My investment view

Barclays’ strong earnings outlook and rising shareholder returns make it well worth investors’ consideration, in my view.

I already hold two stocks in the same sector — HSBC and NatWest. So, buying another would unsettle the risk/reward balance of my overall portfolio.

Instead, my attention has been caught by several deeply undervalued stocks in other sectors, many of which offer even higher yields than Barclays.

Should you invest £5,000 in Barclays Plc right now?

Simon Watkins owns shares in HSBC and NatWest.

The post £20,000 invested in Barclays shares a year ago is now worth… appeared first on The Twelfth Magpie.

But it’s the future that really matters. With this in mind, is the pullback in the share price a golden opportunity to research further? Let’s see.

Underappreciated and undervalued?

Looking at the league table of price-to-earnings ratios of Britain’s five biggest banks, Barclays languishes second bottom.

Based on its price-to-book (P/B) ratio, it looks to be the FTSE 100’s cheapest bank. In fact, it’s the only bank with a P/B below one. In theory, this means the sum of its parts (assets less liabilities) is higher than its current market cap.

I suspect some of this can be put down to its business model. It generates a significant proportion of its income from its investment arm. Here, earnings can be erratic due to the unpredictable nature of the stock market. Also, the return on tangible equity (RoTE) is lower.

Generally speaking, investors place a higher multiple on more stable earnings. I reckon that’s why Lloyds Banking Group, with its large mortgage book and focus on high street banking, is valued more highly.

Going in the right direction

However, for the time being, let’s ignore how Barclays is valued relative to others and look at its own performance over the past two years. Encouragingly, this shows an improving trend, both in terms of income and profit.

In 2025, the bank met all of its key financial targets. Notably, year-on-year earnings per share increased by 21.6%.

And it achieved a RoTE of 11.3% compared to 10.5% in 2024. This gave the bank’s directors the confidence to announce a 2028 RoTE target of “greater than 14%”. They’ve also unveiled plans for 2026–2028 shareholder distributions (dividends and buybacks) of £15bn.

Barclays reckons cost savings achieved through the widespread adoption of artificial intelligence solutions are going to be a major driver of the anticipated future increased profitability.

Despite such an impressive performance, one area to keep an eye on is the level of loan defaults. Barclays set aside £823m to cover potential losses during the first quarter of 2026. This was 54% more than for the previous quarter. It’s a reminder that it’s vulnerable to a wider economic slowdown, particular in the UK and US where it does the majority of its business.

Even so, analysts have a 12-month price target that’s 20% higher than the current share price. And of the 18 covering the stock, none are advising their clients to sell.

Final thoughts

I already own shares in Barclays. In fact, it’s the only UK bank that I hold. But I wouldn’t describe the stock as being in bargain territory. In my opinion, there are plenty of other FTSE 100 stocks offering better value. Instead, I would describe the bank’s shares as being moderately undervalued.

That means investors looking for an entry point into the sector at a price that’s notably lower than just before the war in the Middle East started, could consider adding the stock to their own portfolios.

Should you invest £5,000 in Barclays Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Barclays Plc made the list?

James Beard owns shares of Barclays.

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The target is around 30% higher than today’s share price of around 453p.

Earlier this year, the bank pledged to return £15bn to shareholders as part of larger reshuffling strategy involving risk-weighted assets (RWAs) and capital reallocation.

But what does this mean for investors, and is it all good news?

How Barclays’ capital machine works

The new strategy is aimed at improving the bank’s income credentials, but could it impact long-term growth? To understand that, we need to look at how it all operates.

Think of the new strategy as a three-lever machine designed to free up cash for shareholders:

1. Capital returns

Barclays has committed to returning over £15bn to investors through buybacks and dividends. This cash comes from profits and assets the bank no longer needs in low-return businesses.

2. RWA reallocation

The bank’s shifting RWAs away from lower-return investment banking toward higher-return UK retail banking, consumer finance, and mortgages (including the Best Egg acquisition and Tesco Bank partnership).

3. AI-driven cost savings

It’s also investing in artificial intelligence (AI) and digital tools to cut costs, which should boost profits and free up more capital for dividends or buybacks.

These levers create three plausible paths for dividend investors between 2026 and 2028. Return on tangible equity (ROTE) measures how efficiently the bank generates profit from shareholder capital.

So the question is, which scenario will materialise, and what are the risks?

What could go wrong?

Barclays faces several risks that could derail its plans:

• Regulatory capital pressure – If regulators demand more capital buffers, buybacks and dividend growth could be cut.
• Missed integration targets – Best Egg and Tesco Bank deals might not deliver expected profits on time.
• Slower investment banking fees – A weak IB recovery could reduce overall profits.
• Lower AI savings – If digital cost cuts underdeliver, profits and dividends suffer.

So how does Barclays stack up against other UK banks right now?

Fundamentals compared

The UK banking sector’s performing well and is expected to keep growing. And Barclays holds a strong position in terms of market sentiment, valuation, and growth potential. 

Its large size and high liquidity also add value for investors who want a stable, tradable stock.

However, recent volatility and slowing momentum add risk. Barclays’ margins and profitability metrics are currently lower than most other UK banks, besides Lloyds.

It also has the lowest dividend yield of all UK banks, at 1.93%, but it compensates with the longest payment track record: 42 consecutive years of dividend payments.

The bottom line?

Barclays is no longer just a ‘cheap’ bank trade — it’s a capital-allocation test. Its dividend appeal depends on management sticking to its plan of returning capital while reshaping its book for higher returns.

It’s a compelling strategy, and one that’s certainly worth a closer look by investors crafting an income portfolio. However, it’s important to understand the risks and have faith in the RWA shift toward UK retail and consumer finance.

For investors simply chasing the highest yield today, other UK banks might be preferable to consider. 

The real question is: do you want income now, or are you willing to wait for Barclays’ strategy to pay off?

Should you invest £5,000 in Barclays Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Barclays Plc made the list?

Mark Hartley owns shares in Lloyds Banking Group.

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Resetting expectations

The State Pension was never designed to be a complete retirement solution on its own. For most investors, the challenge is not the level of income it provides, but the assumptions attached to it — particularly the idea that it represents a ‘finished’ retirement plan.

So the more interesting question becomes: if the State Pension is the foundation, what actually builds the rest of retirement income?

Building beyond the baseline

The gap between a baseline retirement income and the lifestyle many investors ultimately want is where the real planning challenge begins.

That gap can be filled in different ways — through savings, investment portfolios, or income-generating assets held over long periods. But importantly, not all sources of income are created equal in terms of reliability, yield, or consistency through economic cycles.

This is where dividend-paying companies become particularly relevant. Rather than relying on one-off returns or unpredictable growth, certain businesses are structured to generate repeatable cash flows that can support long-term income streams.

Banks are a clear example of this dynamic in practice. Their earnings are closely tied to interest rates and economic conditions, but in stronger environments they can generate substantial and sustainable shareholder returns.

Diversified bank

Take Barclays (LSE: BARC) as an example. It combines UK retail banking with investment banking operations, giving it multiple drivers of income across the cycle and a degree of resilience in different market conditions.

A structurally higher interest rate environment compared to the previous decade has reshaped the investment case. Net interest income rose 12% year on year.

Supported by a strong UK deposit base and a growing structural hedge, management now targets compound annual income growth of more than 5% out to 2028.

The investment bank is also a key earnings driver. It recently delivered more than £4bn in quarterly income. That shows a key strength of the business — the ability to benefit when market activity picks up, adding a cyclical boost that more defensive banks often lack.

Capital returns are another important feature. The latest £500m share buyback programme reinforces management’s focus on returning excess capital alongside dividends, strengthening the income profile for shareholders over time.

Of course, this is still a cyclical business. Credit conditions will fluctuate, and investment banking revenues will move with market sentiment and global economic activity. Earnings will not be smooth year to year.

Even so, in a more normalised rate environment, the Blue Eagle bank has shown it can generate strong, shareholder-friendly returns across the cycle.

For investors building income alongside the State Pension, Barclays is worth watching closely. Especially in a higher-rate world that may last longer than many expect.

Should you invest £5,000 in Barclays Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Barclays Plc made the list?

Andrew Mackie does not hold any positions in the companies mentioned.

The post How much of retirement should the State Pension really fund? appeared first on The Twelfth Magpie.

Things look set fair at the start of 2026, but the Iran war has thrown everything into turmoil. Despite that, the FTSE 100 has held up pretty well. It’s up 5.7% since the start of the year.

By contrast, the Barclays share price is down 5.2%. That would have reduced a £9,999 investment on 1 January to £9,479 today. That’s disappointing, but long-term investors can’t really complain after its astonishing recent run. The Barclays share price is still up 145% over five years. Dividends are on top.

The stock was bound to take a breather at some point. Is this a buying opportunity for long-term investors?

How much money is this bank making?

Underlying full-year pre-tax profits have risen nicely in the last couple of years, as my table shows. They were a bit up-and-down before that.

• 2025 – £9.1bn
• 2024 – £8.1bn
• 2023 – £6.6bn
• 2022 – £7.0bn
• 2021 – £8.4bn

Q1 2026 results (April 28) showed a more modest 3% increase in profits to £2.8bn. The income is still rolling in, but the bank was hit by higher costs and a £228m impairment charge from the collapse of UK shadow bank Market Financial Solutions. In total, Barclays set aside £823m for bad debts. If shadow banking problems worsen or the Iran war triggers a global recession, that figure could climb higher.

Barclays may have a US investment banking arm and be expanding in the Middle East, but it still makes half of its money in the good old UK. Our sluggish economy is therefore a problem too.

Despite current uncertainty, Barclays still expects to return more than £15bn to shareholders between 2026 and 2028. Much of that will come from share buybacks, but it will pay dividends too. The forecast yield is 3.4% for 2026, rising to 4.1% next year.

Is now a good time to buy the stock?

Today, the bank looks good value with a forward price-to-earnings ratio of 8.6. Personally, I think recent volatility has thrown up an opportunity to buy FTSE 100 banks generally. I leapt on both NatWest and HSBC earlier this month, after their shares dipped on disappointing (but not actually that bad) quarterly results.

Both are up more than 5% since, so I’ve had a quick early reward, although my plan is to hold them for decades. Frankly, if I wasn’t beginning to worry that I was over exposed to the sector (I also hold Lloyds) then I would fill my boots with Barclays right now. While there are always risks, I just think this looks like one of the most compelling opportunities in the FTSE 100 today.

Over the years, investors can look forward to share price growth, dividend income, and buybacks. No doubt, there will be ups and downs along the way. Following the financial crisis, no investor will breathe easily around the banks. But I’ll be watching Barclays closely and waiting for an opportunity to buy it, once I get more cash in my trading account.

Should you invest £5,000 in Barclays Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Barclays Plc made the list?

Harvey Jones owns shares in HSBC, Lloyds, and NatWest. 

The post See what £9,999 invested in Barclays shares on 1 January is worth today… appeared first on The Twelfth Magpie.

But the question now is, what happens next? Can this momentum continue? Or are there major risks lurking below the surface?

What the experts see

The latest institutional view is still fairly upbeat.

In March, Barclays reported a 6% rise in group income £8.2bn and previous raised its key return on tangible equity target to above 14% by 2028, up from previous guidance of more than 12% by 2026.

The bank also announced its plans to return more than £15bn to shareholders between 2026 and 2028. That’s a strong signal. And it suggests that management expects its current solid performance to continue into the coming years.

It’s an opinion seemingly shared by many experts, given that 15 out of 18 institutional analysts currently recommend the stock as a Buy or Outperform. And this bullish sentiment isn’t unjustified.

After all, the business has already exceeded its own profit and efficiency targets ahead of schedule. And if Barclays keeps lifting returns, growing profits, and returning cash, the stock could indeed be a solid investment today. But that might be harder to deliver than it sounds…

The hidden risk

In my opinion, the bear case surrounding Barclays is less about whether it can keep improving but rather more about how long that improvement can last.

Reuters noted earlier this year that the bank’s plan is to focus on its core UK and US markets while using AI and technology to cut costs. That sounds good at first glance, but it also highlights the core challenge.

If the next leg of growth depends on cost-cutting and a stable banking backdrop, then an external economic slowdown could take a lot of Barclays’ shine away. And with economic concerns already creeping into both the UK and US economies, a slowdown might not be far off, especially with the expected energy and food inflation courtesy of the Iran war.

Put simply, the easy money might have already been made, with a tougher road ahead that could leave some investors disappointed.

What matters now

For me, the real question is not whether Barclays has improved – it clearly has. But rather it’s about whether the bank can maintain its recent outperformance in the years ahead. Management appears to be confident, and its ambitions don’t appear to be too optimistic.

So, for investors looking for exposure to the banking sector and who are comfortable with the macroeconomic risk, Barclays shares could be worth mulling over. But for my portfolio, I’ve also spotted other promising opportunities in the financial sector.

Should you invest £5,000 in Barclays Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Barclays Plc made the list?

Zaven Boyrazian does not hold any positions in the companies mentioned.

The post After jumping 29.7% in 12 months, what’s next for Barclays shares? appeared first on The Twelfth Magpie.

Yet even after that storming run, there’s still a consensus price target among City analysts for 540p. That’s around 20% ahead of the price at the time of writing.

But let’s sound a note of caution here. Broker price targets can be fickle. And buying shares based on them alone could be asking for trouble. So let’s take a closer look at Barclays and see what the bigger picture looks like.

Strong start to 2026

Barclays delivered another solid quarter with a 13.5% RoTE in Q126, and double-digit returns in all our businesses … Top line income grew 6% year-on-year, driven by broad based divisional performance including in the Investment Bank, where we generated over £4bn quarterly income for the first time.

— CEO CS Venkatakrishna

A CEO’s supposed to be upbeat at results time. But those numbers mentioned above sound impressive, especially at a time of high inflation and tough global economic conditions.

And to make things even sweeter, once Barclays’ ongoing £1bn share buyback is complete, there’ll be an extension of up to another £500m. The UK’s FTSE 100 banks really can be prolific cash cows. And I rate Barclays as a definite candidate for the very best of them.

What about the rest?

Here’s what forecast bank valuations in price-to-earnings (P/E) terms, and dividend yields, for the UK’s high street big four look like…

^{Sources: Yahoo!, MarketScreener, interactive investor}

A look at that table says a couple of things to me.

The first comes from checking only the 2026 columns. Based on those P/E valuations and dividend yields, they all look around fair value to me. They’re certainly below the FTSE 100 long-term average P/E multiples. But I see that as deserved in the weak economic times we live in today.

But based on forecasts further ahead… they all look increasingly cheap to me.

Uncertainty ahead

The problem is, banks face various threats. In Q1, Barclays posted credit impairment charges of £823m — largely due to its associaton with collapsed UK mortgage lender Market Financial Solutions.

Remember the way the whole global bank system unravelled when the sub-prime mortgage crisis kicked off and it turned out its tendrils reached everywhere?

I don’t expect anything on that scale again, at least not any time soon. But fears are growing that global credit networks could be getting a bit overstretched.

What should we do about Barclays shares?

Bank stock investors simply have to accept there are unknown risks like this — and diversifying against them is sensible

I’m not sure I’d rate Barclays as the FTSE 100’s very best. But it’s definitely in my top handful that I think are worth evaluating.

Should you invest £5,000 in Barclays Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Barclays Plc made the list?

Alan Oscroft owns shares in Lloyds Banking Group.

The post With a +20% price target, are Barclays shares the best buy in the FTSE 100? appeared first on The Twelfth Magpie.

Barclays’ price-to-earnings ratio’s a modest 9.6. That’s well below today’s FTSE 100 average of around 15. On a forward basis, it’s just 8.4. Anybody glancing at the P/E in isolation would have thought the shares had taken a beating instead of soaring. So what’s going on?

First, I should point one thing out. All the big UK banking stocks have performed in a similar way to Barclays lately. Basically, they’ve gone gangbusters.

Is this FTSE 100 bank a bargain or a problem? 

That’s mostly down to higher inflation and interest rates. While this is bad news for many businesses, it allows banks to widen their net interest margins, the gap between what they pay savers and charge borrowers. They’ve been making hay as a result. Check out Barclays’ full year pre-tax profits over the last five years.

• 2025 – £9.1bn
• 2024 – £8.1bn
• 2023 – £6.6bn
• 2022 – £7.0bn
• 2021 – £8.2bn

Profits did slip in 2022 and 2023 due to a range of factors, many of them one-offs. They include US litigation, a dip in investment banking fees, increased provision for bad debts, restructuring costs, and the ups and downs of market activity. Barclays has an investment banking arm in the US, which helps drive profits in the good times, but makes them more volatile too.

Today, the Iran war’s a worry. This could drive up customer loan impairments and thump investor confidence across the board. On the plus side, it might also drive up interest rates, and those margins.

Barclays has also been hit by growing concerns about the shadow banking sector. Its Q1 update on 28 April showed how this can quickly translate into real losses. Credit impairment charges rose to £823m, driven by a £228m loss on scandal-hit UK bridging loan provider Market Financial Solutions (MFS). Barclays hopes to recover half of that.

So there are reasons for the low valuation, but I still think Barclays looks cheap given the long-term opportunity. And Q1 results weren’t bad you know. Total income climbed 6% to £8.2bn, although higher costs and impairment charges meant profits rose at a more sluggish 3% to £2.8bn.

Can it still keep banking those profits?

Barclays has big plans to reward shareholders, lining up £15bn worth of dividends and share buybacks between 2026 and 2028. The board’s working hard to become more efficient, making £1.7bn of cost savings across 2024 and 2025. It’s looking to drive its return on tangible equity above 12%. That’s a key performance metric. It stood at 11.3% in 2025. The 2026 profit outlook’s positive.

I’ve been on a bank buying spree in May. I snapped up both HSBC and NatWest after their shares dipped on results day. I think today’s uncertainty offers a buying opportunity, and Barclays is well worth considering too. I’ll be keeping a close eye on this one over the summer. Maybe you should too.

The post Why are booming Barclays shares so cheap? Read this… appeared first on The Twelfth Magpie.