Member Info for longtimeinvestor

Investment plan average total cost per share is currently just under 46.9p

hu
''Total Cost to date... ................................................£514,587,413.56''

That is NOT the total cost. If you want to state that figure then you should indicate that it is the cost BEFORE stamp duty tax.
Progress through the investment plan is indicated by the percentage spend based on a pre stamp duty figure or a total cost figure (percentage being the same)

iapr
''you will have to pay a dividend tax on the B share redemption''

it is a share sale not a dividend payment

''A dividend can only be made if a business is profitable''

I gave a case where that was not true (borrowed money )- should have said, a dividend is best paid only if a business is profitable.

Lloyds banking group came into being in 2009. With the take up rights issues and the bonus shares given, along with purchases and sales made at appropriate times a shareholder could now be in a good position. I have a low average price after many years invested.

csdi
''buybacks get drowned out.''
the value of the buybacks cannot be drowned out - there will always be about a 2.8 per share price differential when investment is complete.

''Only two things matter
1. the SP
2. The dividend''

The SP is determined by what the market is willing to pay - it doesn't represent shareholders equity.
A dividend can only be made if a business is profitable, so I would say that profitability comes first. There have been instances where a company has borrowed money in order to maintain a dividend.
The market prefers a situation where they can see a dividend is sustainable. Lloyds have put dividend payments on the road to sustainability, which hopefully will increase as time goes by. Of course investment must play a key role for any business, which Lloyds have made in recent times, with the latest investment that being the purchase of Lloyds shares which are currently way below the shareholder equity level

Any increase in share price when receiving an 8% yield in this type of stock should be seen as a bonus . Share price was at about 365p at the end of 2019.

csdi
''Why is the SP not higher when we are 25% thru the buyback program''.

The market price is only a reflection of what the market is willing to pay for the shares - nothing to do with the investment plan.

''Sorry just cannot agree buybacks are any use at all to the small PI.''

Reducing the number of shares by way of purchase and cancellation will increase the percentage slice size of your of Lloyds investment - transferring the value from the cancelled shares to the remaining ,equating to about 2.8p per share, thereby giving about a 10% total return including dividends to shareholders based on the current price.

hu
''Total Cost to date... ................................................£514,587,413.56''

that is not the total cost

ls
''the total capital return in respect of 2021 will be up to 4.82 pence per share, ''

yes as i said the other day, about 10% based on current share price.

hu
'' other peoples opinions ''

Anyone can have any opinion they like, but when it falls into the category of being incorrect then it needs to be corrected . You get confused between the two.

ww
''knows as much as I do and that is zilch.''

Do you think that someone who says that they know nothing, is the best person to judge whether others know anything or not?

Aris
it was only quite recently that the market was valuing Lloyds at about asset value - events have happened since.

Aris
The market knows a lot of factors that could be on the horizon, just as investors should know -
the choice for investors is deciding when taking future possibilities into account, whether a company is fairly valued at the present time or not.

Aris
''Why is the market continuing to value Lloyds at 17.5 % less than its 2021 Tangible net asset per share ?''

The market value is the market value.
Some businesses have lots of assets but very little profit.
Other businesses have very little in the way of assets but make good profits.
Shareholder equity is only one factor that an investor should look at when it comes down to investing.
Lloyds assets are currently about 10p per share greater than the current share price.
Another example - You will find that some investment trusts trade at a discount against underlying assets and others at a premium.

A1
Yes a good discount

Aris
''Long. I pity the poor people who think you know what you are talking about.''

I pity you for not understanding something simple.

flec
'' Any stock trading well below the fundamental value is an opportunity to buy, ''

Yes, that is why Lloyds have initiated the investment plan - purchasing equity 10p per share below value.

hu
''In my previous post replace "cancelled" with withheld dividend.''

Amounts to the same thing - the money didn't disappear and is now being returned to shareholders.

A1
''low share price presented an obvious advantage over other forms of capital distribution''

Correct - buying shareholder equity for about 10p less than valued.