Member Info for longtimeinvestor

Ct

''one immediately wonders what has happened to the extra cash generated from the share sales.''

ffs, maybe you should leave it now - further nonsense statements do not serve you well.

She

''I am getting 6.05%''

''Lloyds has become a pure Income play in my opinion''

I couldn't disagree more.

At the current price, as well as having a forward yield of about 7%, a further 8% would be returned via a £2 Billion buyback increasing the nav/e per share. So unless the market continues to value Lloyds at about £25 Billion or less in the coming years, there would be a price appreciation per share on top of an increasing dividend from the current 7% level on offer.

''I have been calling this below forty pence for over a year and got called names''

under which of your user names was that?

Order in at 39.65

At under 373p

Market cap at 40p is about £25.4 Billion

A £2 Billion buyback equates to about 7.9% of current market cap -

add in the dividend means a massive return to shareholders.

''that's under 40p broken again''

great if that is maintained for a large buyback in February

Bun

No, they went XD yesterday (6.1p) - hence the fall in share price, but the good news is that you can purchase now at about 9p lower than on Wednesday

Dor

''What was the driver for this cap? Government or……? I suspect it is cast in stone and can never be reviewed.''

Affordability, to try to limit any top up requirements into a fund. lloyds has had to pump in £Billions in recent times into the pension funds.

My mums pension fund/benefits were reviewed a couple of years ago - the cap was reduced from 5 to 2%.

If a fund had a large surplus to requirements, they could possibly at their discretion pay a short term increase above the cap - it didn't happen last year with my HSBC pension and most likely will not happen this year.

G13b

''Final salary pensions are inflation linked.''

Many in the public sector may have that benefit but unfortunately not in the private sector (caps).

Mine is capped at 5% meaning as I have already posted has meant large real term cuts in the last 2 years . My mums is even worse with a 2% cap.

Just hope that RPI can get down to the 5% or lower level next year.

Tod

''People that can’t play ups and downs should stick with deposit accounts.''

absolutely correct - some people start making up conspiracy theories when invested assets in markets take a downturn.

HFEL have recently increased the dividend to 6.1p per quarter.

There are some very high yielding stocks around now because of falling capital values helped along with the alternative of safe high rates of returns on cash.

Ct

''The number of shares has increased each year, i.e. investors have been consistently diluted''

as i said - something wrong with your logic.

New shares have been issued at a premium

Ct

''and in seeing the obvious issuance of new shares being a logical reason for the declining share price..''

I am afraid that there is something wrong with the your logic processing

Cel

''could be regarded as being means tested in some way.''

better to say it is taxable in some way (via tax paid on additional income above allowance)

888

''I have a feeling the whole Sp system will change over the next 50 years''

I think it is a case of it having to change. Compulsory work place pensions were brought in a step towards the individual / employer being more responsible for pension provisions. No one pays into a state pension fund, it is simply paid out from tax receipts - that cannot continue.

Cel

the system in place is one where it is not means tested or taxed, It is a political argument over whether it should be or not and whether the administrative costs to make it means tested would make it worthwhile.

The state pension is also not means tested

Obviously many people don't need it

Or means tested

88

winter fuel payments are not taxed

Dor

''Over years they could have saved thousands.''

also SERPS was not an additional payment - it wasbased on paying a normal rate of National insurance. Contracting out meant a reduced NI payment with the difference being redirected into an alternative pension plan.