These are the ‘dogs of the FTSE 100’ in 2020. I’d buy one of these shares today!

first_img Enter Your Email Address See all posts by Cliff D’Arcy 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. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! 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. Cliffdarcy has no position in any of the shares mentioned. The Motley Fool UK owns shares of Melrose. The Motley Fool UK has recommended ITV and 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. Our 6 ‘Best Buys Now’ Shares 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.center_img Cliff D’Arcy | Tuesday, 30th June, 2020 Image source: Getty Images Simply click below to discover how you can take advantage of this. An old stock-market expression says, “As goes January, so goes the year”. Thus, when the FTSE 100 goes up (or down) in January, it may also do so in that year. In 2020, that’s certainly been the case so far.The FTSE 100’s January wobbleAt the start of 2020, the FTSE 100 was riding high, hitting its 2020 peak of 7,675 on Friday, 17 January. Then stocks slipped, with the index ending January down 4.2%.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…Then news emerged of a fatal virus spreading outwards from China. Covid-19 has killed over 500,000 people worldwide and the pandemic is not yet over.The FTSE 100 collapsesOn 2020’s first trading day, the FTSE 100 closed above 7,600 points. At its low on Monday, 23 March, the index crashed below 5,000. Indeed, the FTSE 100 lost a stunning 35% of its value in under 12 weeks.2020: A game of two halvesHowever, 2020 has been a game of two halves. After a first quarter ranking among the worst market crashes, share prices surged after 23 March.The FTSE 100 now hovers around 6,187, up almost a quarter (24%) from its 2020 low. Despite this dramatic comeback, the FTSE 100 has had a gruesome half-year, down almost a fifth (18%) in 2020.Some falls are bigger than othersIn highly volatile markets, some stocks soar sharply, while others slide steeply. Examining the FTSE 100 today, I count 25 shares that are up in 2020, including six ahead by more than 20%. Shareholders in these 25 out-performers have had a great year, but it’s bad news for the rest.Of the remaining 75 shares, first-half losses range from a tiny 0.1% to a massive 63%. Worst still, these 75 losers include 24 stocks down more than 30%. Ouch.The FTSE 100’s dogs of 2020If you own a significant shareholding in any of the following FTSE 100 firms, then your portfolio may have suffered a nasty knock. This table lists the share-price loss of the FTSE 100’s six biggest fallers in 2020:International Consolidated Airlines -63.1%Rolls-Royce -57.6%Melrose Industries -51.4%ITV -51.1%Lloyds Banking -50.0%Royal Bank of Scotland -49.6%Five of these six slumpers are familiar household names; Melrose Industries (#3) owns various manufacturing and engineering businesses. It’s no surprise to see IAG in the top spot of these FTSE 100 dogs, as it owns airlines including British Airways, Iberia, and Aer Lingus. Likewise, the future of Rolls-Royce depends on a return to profitable air travel.As for ITV, its shares have more than halved this year, so I can see value in this business, especially as a takeover target for a larger media conglomerate. Dogs #5 and #6 are both banks. Clearly, being a huge lender and riding out the steepest recession for three centuries is not ideal. That explains why Lloyds and RBS shares have halved this year.Which FTSE 100 dog would I buy?If forced to own one of these six dogs, I would buy Lloyds shares. As I wrote two weeks ago, Lloyds has been an awful share to own since 2007, but it survived the global financial crisis and it will conquer Covid-19. While I would expect zero dividends in 2020–21, Lloyds will find a way through this crisis. I’d buy its shares for long-term capital growth and for an eventual return to dividend payouts. “This Stock Could Be Like Buying Amazon in 1997” These are the ‘dogs of the FTSE 100’ in 2020. I’d buy one of these shares today!last_img