Doesn't the present boss of Greece realise what wheels have been set in motion now that he has flatly refused to go along with the ECB? There will be at least massive bankruptcy of the economy and at worst - civil war! Taking the country outside the EU will overnight reduce their currency to worthless junk. Everyone's savings will be worthless, salaries will be worthless, goods from outside will be impossible to obtain. People will steal, beg or kill for food and shelter, electricty and warmth. Sounds dramatic - look at Argentina : http://en.wikipedia.org/wiki/1998%E2%80%932002_Argentine_great_depression (read from 1999 onwards.
This WILL happen in Greece of this leftie pulls the plug. Will it affect LLOY - not directly, I think its exposure to Greece is marginal, but the FTSE will be slugged and LLOY may follow this instead - double damn!!!
I notice that over 12 million shares were 'bought' after the markets were closed and the trades were described as either 'ordinary deletion' or 'uncrossing trade'. What do these terms mean? So far as Motley Fool 'expert comments' are concerned I'm sure I'm not the only one to be somewhat cynical of how they systematically talk up Lloyds one day only to talk the shares down the next. They're so predictable. As Manuel said 'I know nothing' but I live in hope.
No disrespect to anyone.We are rather getting used to this sort of well informed guess work. Yes LLOY will one day hit 125p or more but when? No doubt this is now a HOLD in MHO. I am cautiously optimistic. It seems some time ago AHO said LLOY will be a high dividend paying bank!! We have seen persistent speculation about Dividend payment.There is perhaps every reason to believe that this time a small dividend will be paid but those reasons are not necessarily commercial as M F might imply.Once AHO gets the 7 million bonus and the general election is out of the way will probably know more about the true strength and weakness of LLOY if ever we will know all the facts.Yes perhaps the same is true for most other Banks. Apologies for a sceptical comment but share holders have been let down too often in recent times. GLA
The share price dipping after a dividend is announced and then potentially raising is nothing to do with rewarding loyal shareholders. If a company is valued at 100 million as it is worth 80 million and has a cash float of 20 million, then when it sets aside 20 million to be paid out in dividends it then becomes worth only 80 million hence you generally have the dip in price of the same amount as the dividend.
FYI: By Peter Stephens - Friday, 13 February, 2015 LLOYLYG Lloyds (LSE: LLOY) (NYSE: LYG.US) has made a disappointing start to 2015, with shares in the part-nationalised bank being down by 1% since the turn of the year. That’s a worse performance than the FTSE 100, which is up 5% year-to-date, and shows that investor sentiment in Lloyds remains relatively weak.
However, that could all be about to change due to Lloyds’ income potential. For example, the bank is forecast to pay out a dividend per share of 2.9p in the current year, followed by 4.2p next year. This puts Lloyds on a forward dividend yield of 5.6% and shows that it could have considerable income appeal over the next couple of years.
In fact, this appeal looks set to increase, as UK monetary policy seems likely to become even looser during the course of the year. That’s because the Bank of England has now stated that the UK could experience a period of deflation for the first time since 1960 and that it will consider lowering the interest rate in an attempt to inflate the economy. As such, dividend yields could become even more appealing for savers and income investors, thereby helping to push the share prices of high-yield stocks, such as Lloyds, even higher.
As if that weren’t enough, Lloyds is set to increase its dividend even further after next year. That’s because it’s aiming to deliver a payout ratio of around 65% over the medium term and, were it to achieve this goal using next year’s forecast earnings figure, it would mean that Lloyds has a forward yield of a massive 7.3%, which would clearly be hugely appealing for any investor seeking a decent income.
With the FTSE 100 currently having a yield of just 3.2%, Lloyds could see its share price move higher as investors seek out such a generous yield. In fact, even if investors were to bid up the share price of Lloyds so that it reached 125p (a gain of 67% from its current share price), it would still mean that Lloyds has a forward yield of 4.4%. As such, a price target of 125p seems to be very achievable over the next few years.
Clearly, Lloyds faces an uncertain future, with the General Election only three months away, the Eurozone economy still facing major challenges, and the UK economy set to endure a tough period of deflation.
However, with profitability on the up and a dividend policy that is very generous, Lloyds could offer huge income potential that may see its shares become in-vogue and climb to reach the heady heights of 125p each.
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