RE: Buyback update27 Feb 2023 18:49
NC
''it will take TWENTY years ''
What would your return or any investors return be after 20 years when purchasing a share at £1 and yielding 5% ?
Lloyds is not saving money on share buybacks, it allows shareholders to increase their percentage stake and at the same time allows profits allocated to dividends to go to fewer shares. Amount of dividend allocated is determined by profitability/dividend policy and not by the number of shares in issue.
A buyback each would have the ability help to have increased dividends on flat earnings, and thereby increasing the yield from a 5% base for those purchasing today. 10 years of £2 Billion buybacks = $20 Billion. Current market cap about £35 Billion.