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Whether to wish for Dividend or Buybacks or do nothing and get Capital Growth
Dividends are nice especially when first £5,000 was tax free in UK. That is greatly reduced now
the tax is high now if you are high earner.
Buybacks lessen number of shares and in theory that makes each share worth more. The problem is
that the market seems to ignore this in short term. They focus more on tier 1 ratio and how close to threshold that is.
However having excess capital is dangerous with the thieves that run for government that will do a raid on bank profits at the drop of a hat and whip up of public disdain, unjustified in my opinion. i would love to go on Question time when they try whipping up the public and ask "Why dont you invest in UK Bank shares and partake in the success" or ask
them if they have looked "at a UK share price graph over 10 or 15 years and not focus on last few months"
i see these windfall taxes and spurious fines as a constant risk that having excess capital might add to.
so i am in favour of paying out as they do and staying just comfortably above the tier 1 ratio number.
however each persons tax situation differs for dividends. as tax is high now, i prefer if buybacks happen as overall my tax is 50% of dividend whereas with buyback you get 100% value, eventually. but that is just me and i think alot will like the dividends and even get all in dividends.
FTSETiger
"i prefer if buybacks happen as overall my tax is 50% of dividend"
If you are close to retirement retire early then you wont pay 50% tax on your dividend.
Sorry i know the higher rate of tax is 39.5%ax on dividends with first £1000 tax free
my particular situation is i have just gone over 100k in total income with job and dividends. it is nice issue to have.
they take away the £1 for every ,£2 of the 12,530 tax free threshold everyone gets
so the extra dividends in my case means i lose half of that 12,530 tax free threshold.
Ftse
''having excess capital is dangerous''
I would not have used the word dangerous. I believe Lloyds were aiming to get rid of excess capital by the end of next year?
The country is massively in debt.
100% of f uck all is bankruptcy.
More and more illegal immigrants are en route to the Uk, to get their free luxury hotels paid and their free housing benefits eventually paid.
A straight question for the numpty Landlord Lloyd’s fanboys here:
If China invade Taiwan, why should you care one iota about Landlord Lloyd’s buying their own shares?
Carltt
May i suggest you've just watch Nigel ! . He expects China to invade Taiwan next year ,4 ish months away that is , exactly why i've gone cash and only holding 2 stock .
Plus the interest rate forgot that sorry
Divis for me until I'm out of landlord Lloyds at 48p lol
Brix
''4 ish months away that is , exactly why i've gone cash and only holding 2 stock .''
I have heard it all now - gone mainly to cash because of the prospect of a Chinese invasion of Taiwan. There was me thinking it was being you wanted the excitement of seeing the cash value increase by 3% after tax in a years time.
Strange that there was no mention of that on 7 Sep 2023 16:13 when you were worried about another banking crash or another Covid.
I think with your new extra worry, you may consider being 100% cash.
Thinking it was because
Gordon Brown hit the nail on the head in 2008, when he was chancellor, “No return to boom and bust.” PM Blair opened the Uk borders to mass immigration and the result is…. no more boom and bust.
Since 2008, the Uk is simply bust.
Landlords made sure of it.
Dear lti
100% cash is my intention
The £7.5b government bond they opened pays customers 6.2% guaranteed upto £1m . Stop being overlord of narcissism again
Brix
''100% cash is my intention''
enjoy