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LTI, a 14% dividend would be harmful & you know it mate.
My point is simply that LLOY is a very good business, making billions every year & a good core holding.
Bros...Quick lunch post from yesterdays Telegraph. Worth a read
https://www.telegraph.co.uk/business/2023/11/16/hunt-end-vicious-cycle-stock-market-decline-ftse100-chiefs/
"HSBC boss Noel Quinn and BP chairman Helge Lund were among the signatories of the taskforce’s letter to Mr Hunt, which raised concerns over new figures showing £1.9 trillion has been pulled from UK stock markets by UK pension and insurance companies over the past 23 years"..
Brix you are a wise dude bros..
LTI so who all the preference shares issued for.... these do not increase the float that is for sure but they pay a large coupon . Then LLoyds buy them back before maturity.
https://www.lse.co.uk/news/in-brief-lloyds-banking-to-repurchase-preference-shares-under-offer-rwte9pt31ze2flb.html
I agree, if buybacks worked with the amount of money LLOY has spent buying its own shares back then the SP would be much higher, it isn't ... FACT.
Give investors the cash spent on buybacks as dividends & the market will like it & the SP will rise.
Or, spend the money on growing the business, thereby bringing in more profits & the SP will rise.
G59
''will continue to pay 5% or 6% dividends ''
the 2023 will be over 6% at the current price level. Lloyds could have a 14% dividend yield if they so decided.
Lti
Your wrong again, give me 10 mins reply
Hu
not really relevant the type of business conducting a buyback for cancellation - the same principles apply
Brix
buybacks equals a reduction in share capital.
buybacks equal increasing eps.
buybacks equals increasing dividends with maintained profitability.
buybacks eventually on at least a maintained market cap equals increasing price per share.
Unfortunately too many investors are not cut out for the patience required - they would be better off if they are unhappy with more speculative investing .
You personally like to go to get a bit of interest with cash
The market determines the value of Lloyds banking group with or without buybacks
Having been in LLOY for many years now I am confident in saying that investors should simply treat it as a "utility share" & bank the dividends.
It will not make you money with a rising SP unless you are extremely lucky with your timing. For those of us almost at state pension age it is a good share for dividends to supplement income, that is all.
I have read countless posts here & elsewhere written by people who thought that one thing or another would drive this to £1 & beyond i.e. once the mis-selling scandal was over, once the Gov had their money back, Libor scandals etc etc. All have proved to be wrong & as for share buybacks well let's have some evidence that they actually work.
LLOY is a good UK based business which will continue to make money, will continue to pay 5% or 6% dividends & one which I am happy to have as part of my portfolio for the reasons given. If I was younger & wanted to make money with a rising SP then there are better companies out there by far.
Lti
It doesn't take much thinking, example : No buybacks = more divi's = lower SP but then followed by more buyers at lower price putting upwards pressure = rising SP by new entrants & top ups.
Banks and insurance companies have not fared well worldwide for a good while. The sectors are out of favour and competition is intense. Removing shares from the register using profits is beneficial to shareholders in all sectors, just on the mathematics alone.
Bailey has got everything else wrong so I predict he’ll get this wrong too and interest rates will start coming down sooner than expected.
Brix
''Buybacks work ! Ridiculous Repetitive Rubbish''
try to do a bit more thinking
Government going to boost ns&i apparently wonder what that means
Just waiting for the other half of the double act to appear. Guess who? HTE RSOTW SI TEY OT MOCE - HOIM - RDYO
... borrowing near record high for October.
The UK government borrowed £14.9bn in October, more than analysts expected and the second-highest figure for the month, according to official figures that confirm the continued pressure on public finances.
In the financial year to October, the deficit was £98.3bn, £21.9bn more than in the same seven-month period last year but less than forecast by the Office for Budget Responsibility in March
DYOR
The busy governor of the Bank of England Andrew Bailey is speaking again - this time to MPs on the Treasury committee.
He's come armed though with back up Sir Dave Ramsden, deputy governor for Markets and Banking, and two external members of the Monetary Policy Committee – Jonathan Haskel and Catherine Mann.
Bailey started by saying the fall in inflation was “obviously good news”, but news which was largely expected.
He thinks the Table Mountain analogy used by chief economist Huw Pill in August for interest rates is good because: "There is a case now, I personally think, for holding the rate where it is… for an extended period."
Bailey also highlighted two main upside risks to inflation .
First, that domestic inflation remains high, partly due to inefficiencies in the jobs market leading to higher wages.
Second, the risk that turmoil in the Middle East drives up the oil price. So far, that hasn’t happened, but it could happen “if there was a wider regional engagement”.
But, he thinks the UK is on target to come back to 2%.
I fear posting at 01:13 in the morning when i got £xx,xxx,xxx in the markets.
88.......CB's walking a tightrope with what they say......they need to say enough to keep a lid on the markets without sending fear into the markets.
Given this garbage nearly 4 years now to be over 10% down,all my other shares are recovering apart from the banks,will never buy them again
Gate.....Agree it shows that buybacks are working for big US Tech Companies evidenced by their SP growth. But, I think it also highlights that buybacks seem to have a benign effect on the SP growth of large companies such as UK Banks, Insurance companies etc who have a totally different business model to the big US Tech Companies. Which is evidenced by their SP growth in conjunction with buybacks compared to the big US Tech companies.
Buybacks work ! Ridiculous Repetitive Rubbish
Its a F ing useless donkey like all the UK banks
...central bankers are still determined to create caution/fear in the markets.....however although inflation is their no1 concern there is now a growing worry of stunting any growth.....cannot see anymore rate rises this year.....rates to stay around the current levels for longer than anticipated & "we won't hesitate to raise rates if necessary"..will possibly be the overall message ....imo
Agreed they do have different business models hardup. But buybacks work. That’s the point I am making.