RE: Newchurch28 Aug 2025 22:09
NC
''Remember Lloyds never paid every year, and when it did restart was low yield.''
lti
''£1 in 2000 compounded at 5% per year as an example would be £3.40p''
as an example was nothing to do with Lloyds - I haven't gone through 25 years of Lloyds dividends. A yield that could be compounded into further Lloyds shares would depend on an entry level and the price at which dividends could be reinvested at.
My purchase as an example about 5 years ago would have a dividend yield this year of about 15%.
Basically it would be very easy to have made investments with dividends reinvested in Lloyds and further ad hoc purchases to easily beat inflation.
Even very recently at 40p, I was saying over and over again that 15% total returns were available at that price level , forward dividends plus buyback. The capital value has obviously increased over 100% since.
Even you have got about a 35% capital increase on top of dividends, but you had not reinvested all dividends received at good price levels.
Capital invested does not automatically increase in line with inflation in addition to any returns received via dividends
''Holding cash would have been worse,''
stock market investments are the best protection against inflation.
''Scary with Lloyds being so UK dependant with this shower ruining the show.''
You do not have to hold Lloyds shares - it is not compulsory