The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
Hi LTI, Yes, they did say they were moving to quarterly dividends in 2020. The dividend for the year before quarterly's was due to be 3.28p in total so looking healthy. Then of course the pandemic struck. I still believe we are in a position to move back to the original plan now.
Hi LTI, I know it's not a problem with dividends in 2 payments rather than 4, but I felt the move to 4 would give a stability and consistency that dividend payments were fundamental to future plans and bring in the big pension funds etc. Also it stops the volatility in share price before and after ex divi dates that you get with some shares. Just feel it would be a strong message to build confidence and well suited to Lloyds on it's return to being a solid and stable investment.
Hi LTI, I do think they will have their own plans, and the only indication so far was that the move to quarterly dividends is cancelled which personally I find disappointing and raises a concern over the direction of travel .......
Hi Paul, With the cash fund that the business is sitting on and the direction of earnings, a dividend payment of 4p per year for example (approx £2.8 bn) should not restrict ongoing investments and would provide a return to shareholders as promised whilst driving the share price back to more expected levels. (All in my opinion of course :) )
Too right Cookoo, absolutely no reason for the dividend not going back immediately to pre pandemic levels and beyond.
Also no reason not to return to the plan of quarterly dividends which would also increase stability. A dividend next year of a penny per quarter would do wonders for the share price and is the least we should expect.
Bit disappointing this morning given the consistently positive broker recommendations on Lloyds. Seem to be having no impact, yet other times a much less bullish positive comment seems to provoke an immediate positive reaction?
Yes Asp, with the level of profit expected this year on top of the CET1 level I will be extremely disappointed if there is not a special in addition to a return to a similar 3.36 level of regular divi with plenty of scope for growth in 2022..... whether it does come through may be a different matter of course!