Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Market seems to be seeing pockets of resistance e.g. mining sector Glencore, Evraz... which were leaders earlier have pulled back. Financials seem to be holding good so far (apart from Lloyds). My observation for the last 10 years is, March ~April tend to be very weak. Lost money invariably every year whenever i invested in April. Reminds of the adage " Sell in May and go away...."
Anyone good at sectoral analysis of the Market? and monthly investing trends ?
Now for the glass half empty
No clarity of future dividends
No mention of previous talk of quartely dividend
The economic impact after end of govt support
Record high unemployment
Pending bank stress tests
Brexit impact will be felt later in the year
New bod
Ceo moving out
New strategic review by new team
Typically the yield for Footsie is around 5%. If Lloyds pay out a dividend of 4p going forward , SP of 80p should be possible.
But going by the lost decade there are many unknowns for this share Brexit, pandemic, PPI, new board, HBOS, Reading.... On top of it changing statements e.g. quarterly dividends to no mention of quarterly dividends in recent results does not inspire confidence. Fingers crossed there is no kitchen sinking by new management.
Same here. The Lloyds tranche i bought in March/April 20 is in 30% profit. However, the losses accruing in the purchases made over the last decade completely dwarf the profit made on investment in April 20.
Nice post Asp. But what is worrying is
"As normal, the Board will give due consideration at year end to the size of the final dividend payment and any return of surplus capital in addition to the ordinary dividend, based on circumstances at the time."
So the half yearly update is more of review. Since Lloyds dividends are spreadout at 1/3 half yearly and 2/3 final. It will not be surprising to see 1/3 of 0.57p as half yearly dividend. It looks as if there will be another year's wait for clarity regarding dividend. Interestingly no talk of quarterly dividend in this rns ?
"As normal, the Board will give due consideration at year end to the size of the final dividend payment and any return of surplus capital in addition to the ordinary dividend, based on circumstances at the time."
Does that mean the next dividend will be announced at year end and paid in 2022 ?
Strangely i first invested in Lloyds before AHO joined. His appointment was hailed as an excellent choice. But 10 years or so down the line shareholders started with no dividends and his tenure also ends with no dividends. Out of memory the share price is roughly also where it was before he joined. And there is a saying investing is long term....didn't work here though.
One clause that is worrying about PPI in todays RNS for half yearly results is copied below. It appears only 53% people with PPI have been contacted and provided for.....47% still to go
https://otp.tools.investis.com/clients/uk/lloyds_banking_group/rns/regulatory-story.aspx?cid=1273&newsid=1131858
"Sensitivities
The Group estimates that it has sold approximately 16 million PPI policies since 2000. These include policies that were not mis-sold and those that have been successfully claimed upon. Since the commencement of the PPI redress programme in 2011 the Group estimates that it has contacted, settled or provided for approximately 53 per cent of the policies sold since 2000. "
Lloyds needs a change at the top. At least someone who can accurately estimate PPI. . 90million ...460 million and shareholders are made to believe we are coming to an end for PPI saga. 1.07p div. much below expectation given the hype that is championed by some.
We should be at or around 70 billion shares but it is still stuck at "71,515,614,767 ordinary shares of 10p each"
http://www.lse.co.uk/share-regulatory-news.asp?shareprice=LLOY&ArticleCode=bd0a120c&ArticleHeadline=Total_Voting_Rights