Dividend income vsRisk.9 Jun 2019 10:46
So much talk of value of stock and price relative to peers but the investment in stock is not just about capital growth and diminishing value it is a mix of return on capital invested and all of the other participants of money investment .
If you put your cash into property or a business there are all kinds of variables that will effect your returns and most of them you can control others you can't and it is those that could and probably will bring you down .
Investing in the Bank is much the same as you are doing exactly the same thing but at arms length with no direct involvement and professionals managing the investments and with economies of scale and variance the money is by definition, safer.
Now you could take out those risk factors and play safe with a savings account,bonds and depending on your size of pot get interest rates that will give you 0.25% to 2.55% and better again should you faff with ISAs something I detest.
Compare the foregoing with the 5% return on Lloyds and its a no brainer unless you are kept awake at night frightened of the bank going bust, in that case keep your money in a tin under the bed because investing in the stock market is not for you.