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Brixton
A - LLOYDS don't have that amount of cash
B - RBS shareholders would have said sod off
Why didn't Lloyds buy Nat West at a £1 and then sell for £2 as of now if they can't buy back their own shares . Or is that bonkers ?
SUFCESSEX,
I do agree but this whole situation has "peed" me off to be honest, I can see "the Lloyds banking group" is a good investment but until we get a resumption of PROPER combination of dividends and buybacks all my free cash is going in other stocks.
Oh well, hopefully the new boss will have something positive to say!
Good Evening Bumble1968
Today Lloyds is a good place to park your money ........there been many head winds over the years
Honestly I still feel the same since I first bought bought in May 2009 I don't want to hold a multi bagger gamblers share , a little income is all i require today .
She now started paying dividends so we just a start again .
Life is full of ups and downs .... just like the Stock Market
I fully support ant buy back if the price is below 60p :-)
The government has several strings to pull , not just on divis, but on the required level of capital buffers, on lending criteria, on banking charges........
As a hypothetical how about this ... Gov still holds ~60 % of NWG , worth about £12bill , they want to get rid of as much of that as they can as soon as they can to top up the coffers, BUT if all the other banks are seen to be paying high divis , punters and insti's dump NWG and head for LLOY, BARC, HSBC.....thus driving NWG's SP down , government sales bring less cash.... Is it just that I'm a cynical sod , or is it a plausible scenario? You tell me! There are covert gov. pressures exerted all over the business world.
I do agree to a point and I know that Covid is an event not seen before but the pulling of the dividend was "naughty" to put it mildly.
The announced dividend SHOULD have been paid then any further payments could have been held back until further notice.
I invested quite heavily here with the original resumption of the dividend, and I fully intend to hold into the future but that decision has made me question the holding of bank shares, in so much that the Government COULD repeat this every time there is an issue / recession etc.......
Bumble..... Banks are a special case , as they are rightly deemed a fundamental element of the financial system and the government MOST definitely holds an interest, history details the "bail out" of RBS, LLOY 's "forced" takeover of HBOS, the managed run down of Northern Rock..... they are more tightly regulated than somebody selling biscuits.If you accept ,as I hope you do, that companies with a key role in the power grid and energy supply , the water supply network , defence, health services , including vaccine development and manufacture might well be constrained by government then I'm afraid the consequences for shareholders must be accepted.
it was the decision of the Lloyds BOD to pay a 0.67p dividend .
casapinos,
I know exactly what happened but a company which the government holds no interest should NOT have decisions forced upon it whether good or bad.
As the government was underwriting some loans I can understand a little pressure BUT it should be the choice of the company whether it can AFFORD to pay divi's or not.
We are still in a democratic country are we not?
if the 2nd half progresses the same way as the first without any great upsets , then at the time of the final results there could be £6 Billion+ of excess capital. It would be surprising if the bank initiated buybacks at more than £1 Billion at a time.
cas
We have known for a while that 'caution' would be the watchword until the time of the final results. A 0.67p interim doesn't set in stone a 1.34p final.
Without higher returns to shareholders, the current excess cash pile will be added to, rather than returned if a 2p total only is given.
Bumble see
https://www.bankofengland.co.uk/about
note the third item "safe and sound banks", however much you might like LLOY to pay more generous divis. they will have had it made clear to them in no uncertain terms that they must exercise restraint.I doubt that the Governor of the BOE(idiot tho' he is) will care much about your concerns.In the wider national interest it very much should happen, and maybe in your medium term interest it will prove beneficial for you(if you are sensible enough to hold for some years).
Nuri,
Yes you are right, but the banks were, and still are making good profits and the only reason why dividends were not paid is because they were "lent on" by the government / BoE...
This should NOT happen.
They always say never count dividend as income - its not guaranteed. And in fact I prefer lower dividends as my income ceiling reached. Prudent these days are people selling shares in light of massive profits - its so dumb....
Nuri -
"Millions of stupid investors out there"
Maybe there are millions in same position as me, prudent people, income hit by divi income drop, due to having modest saving unable to claim any Gov help (not that I ever have)
BARC tainted by nothing
RBS tainted by government selling shares off
LLOYDS tainted by no buy back (could be announced later though)
Nuri Lloyds and hsbc are down after results nwg are slightly up Barclays are up about six per cent
Millions of stupid investors out there in the UK at the moment. Millions.... you could hand them gold on a platinum platter for next to nothing and they still wouldn't buy it. We have had blow out earnings reports across orgs and pretty dismal / appalling share price reaction. Hsbc, Lloys, RBS and Barc announce profits of 20 billion and yet their combined value has barely nudged up a billion
It was similar after q1 results then we had a 10 percent rise for no specific reason - at some point soon a rise will be bought into and it will move up significantly.
It is the same with hsbc up about one per cent now down good results but no buyback another trade I got badly wrong have a substantial investment looking like I am going to write of several thousand pounds on this
Every single rise being sold into.
Both BARC and RBS holding better of late.
The difference? BUY BACKS.
another disappointuling day. Think Lloy would have to increase profits 10,000% before it moves beyond 50 pence. Probably not an exaggeration!
Heads up -
Buy in now to ensure receipt of interim divi
Wonderful 0.67p Half year ex divi date - 5th Aug
Record date - 6th Aug
ROFL
My Guess keep rising till 4th record date for Divi
My Guess keep rising till 4th Divi Record Date ....