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I'm also with ii - and they always seem super quick in paying dividends. But I don't use the re-investment for the reason you mentioned in that it can take a couple of days for them to action. I'd rather pay the £3.99 and choose a time to trade (usually same day). This time I haven't - I'm thinking of leaving the cash there until the next dividend and then using that money elsewhere.
I've had my Sterling dividend paid (first thing this morning) but not my ADR US Dividend. When I've looked at Lloyds Financial Calendar (which hasn't declared the exchange rate yet) it says the US dividend will be paid on the 6th June. I'm just wondering if anyone know why they happen on different dates?
""The dividend per share would go up by 10 times if a 1 for 10 consolidation was done. Why wouldn’t it ?""
"LOL, oh please stop it my sides are aching, lol."
If a company choses to pay £1 Billion in dividends then that is split across the shareholders regardless of any consolidation or split of shares. If you have the amount of shares in circulation then the dividend would be double and the same is in reverse. Apologies if I've missed something - I'm just scrolling through posts and doing simple maths.
When Barclays were trading over £7 per share there were less shares in circulation. Barclays actually reached a high of £7.90 when earnings per share was over 70p and profits were £7 Billion. And it was actually a smaller bank in terms of Assets back then. So the problem is the volume of shares in circulation and the constant dilution that has taken place for years.
In 2007, there were 6,534,698,021 ordinary shares in circulation giving the bank a value of £51 Billion. Today, following the completion of the recent share buyback there are 16,992,950,956 ordinary shares in circulation which is 2.6 times more shares.
So if Barclays share price got back to £7.90 with this many shares it would have to be worth £134 Billion which is unrealistic.
So I'd look at it another way. Barclays are currently worth around £32 Billion. If the market valued Barclays at £51 Billion as it did back in 2007 then with the current share issue each share would need to be worth £3.06 and this is what my target price would be to get some equivalence of the good ole days. That is actually a realistic share price for Barclays and not that much higher than its current net asset value.
I don't think it will be long for us to see the share pass the £2 mark, and analysts have said that the next resistance point is £2.16. If it can close above that there won't be much pressure until it hits an historical resistance of £2.89. I would personally cash in a substantial amount of Barclays at that price as there is a good chance of a pull back from that level.
LTI - "I would feel a little disappointed if the total returns to shareholders by May 2022 isn't 3p+
which would include a special/buyback."
Completely agree. I think the half year dividend will be at least 0.57p to match last years final - maybe a bit more. And then the final dividend will be double that - plus a special dividend to top it up.
All the UK Banks are absolutely flush with cash.
Asperger/Wuds - Whilst I'm not retired yet I have had many reasons to stay invested in Lloyds - and for reasons out of our control, and the banks control; the jam of tomorrow we are all still waiting for. Great respect to both of you for sticking with it. And if I was in your shoes Asperger I would do exactly the same and struggle over the short term rather than sell out of something I believe in. I think UK banks are due good fortunes over the next 5 years.
Lloyds is my biggest investment and my paper loss as of now is down to £62,000. I don't say that lightly. I was £125k down or maybe more at one point last year on Lloyds. My average price is 57p.
I believe that Q1 results were good and that we've seen a trend of the banks writing back losses which has helped boost Q1 profits. I think they have done that to enable them to provide a decent half year dividend regardless of what the regulators say prior to Q2 earnings. If the banks remain restricted on dividends, and they have to base it on previous earnings, then adding these writebacks will allow banks to pay slightly higher dividends on the formula they have been given. If the restrictions are lifted altogether then great - but I suspect even then special dividends will be left until final results. We'll see. (I should include buybacks where I've stated dividends).
I've said this before, but this is a longterm view for me, so if dividends return I'm quite happy with the depressed shareprice as all I'll do is re-invest the dividend.
@Asperger - always appreciated your posts and what you do for charity through this site. I hope for both our sakes that we do see both our capital and our dividends increase. Good luck to you and full respect to you.
I know there's lots of different types of investors on here. Whichever strategy you use I genuinely hope you bring the cash in. Whether it's £200 profit or £20,000 profit. Good luck to you all.
I've baselined the buybacks from the date they started - 19th March.
Baselined share price £1.826 if you invested on 19th March 2021 with Barclays valuation at £31.7B.
Obviously the market decides the value of any business so the share price can go up or down regardless of any buyback. The figures below reflect the impact of the buyback if the market continues to value Barclays at £31.7B
Total Shares: Buyback Date Share Price Close Actual Valuation Expected Share Price against Baseline
17,365,368,531 14,691,600 19/03/21 £1.8260 £31,709,162,938 1.8260
17,350,676,931 15,589,400 22/03/21 £1.8096 £31,397,784,974 1.8275
17,335,087,531 15,570,660 23/03/21 £1.8108 £31,390,376,501 1.8292
17,319,607,030 15,589,400 24/03/21 £1.8422 £31,906,180,071 1.8308
17,304,057,659 15,589,400 25/03/21 £1.8204 £31,500,306,562 1.8325
17,288,562,604 15,589,400 26/03/21 £1.8296 £31,631,154,140 1.8341
17,272,991,851 16,661,600 29/03/21 £1.8038 £31,157,022,701 1.8358
17,256,350,631 16,651,864 30/03/21 £1.8914 £32,638,661,583 1.8375
17,239,746,882 16,634,449 31/03/21 £1.8400 £31,721,134,263 1.8393
17,223,220,189 16,642,456 01/04/21 £1.8750 £32,293,537,854 1.8411
17,206,636,642 17,486,150 06/04/21 £1.8558 £31,932,076,280 1.8428
17,189,352,982 17,500,800 07/04/21 £1.8736 £32,205,971,747 1.8447
17,174,997,241 17,500,800 08/04/21 £1.8798 £32,285,559,814 1.8462
17,157,591,672 17,500,800 09/04/21 £1.8570 £31,861,647,735 1.8481
17,140,156,792 16,438,500 12/04/21 £1.8808 £32,237,206,894 1.8500
Total Shares: Buyback Date Share Price Close Actual Valuation Expected Share Price against Baseline
17,365,368,531 14,691,600 19/03/21 £1.8260 £31,709,162,938 1.8260
17,350,676,931 15,589,400 22/03/21 £1.8096 £31,397,784,974 1.8275
17,335,087,531 15,570,660 23/03/21 £1.8108 £31,390,376,501 1.8292
17,319,607,030 15,589,400 24/03/21 £1.8422 £31,906,180,071 1.8308
17,304,057,659 15,589,400 25/03/21 £1.8204 £31,500,306,562 1.8325
17,288,562,604 15,589,400 26/03/21 £1.8296 £31,631,154,140 1.8341
17,272,991,851 16,661,600 29/03/21 £1.8038 £31,157,022,701 1.8358
17,256,350,631 16,651,864 30/03/21 £1.8914 £32,638,661,583 1.8375
17,239,746,882 16,634,449 31/03/21 £1.8400 £31,721,134,263 1.8393
17,223,220,189 16,642,456 01/04/21 £1.8750 £32,293,537,854 1.8411
It depends on how you hold the shares, who you hold them with and how you've set your preferences. My dividend was paid directly into my broker account this morning.
Ex-div normally has an impact as the share price usually drops the value of the business by the amount of the dividend paid out. But it's less that 1% in Barclays case so we probably won't see much of a difference but yes I would expect it to drop back a bit.
This might interest some people. I've baselined the buybacks from the date they started - 19th March.
Baselined share price £1.826 if you invested on 19th March 2021 with Barclays valuation at £31.7B.
Obviously the market decides the value of any business so the share price can go up or down regardless of any buyback. The figures below reflect the impact of the buyback if the market continues to value Barclays at £31.7B (Not sure how this will show when I click post but hopefully appears readable).
Total Shares: Buyback Date Share Price Close Actual Valuation Expected Price against Baseline
17,365,368,531 14,691,600 19/03/21 £1.8260 £31,709,162,938 £1.8260
17,350,676,931 15,589,400 22/03/21 £1.8096 £31,397,784,974 £1.8275
17,335,087,531 15,570,660 23/03/21 £1.8108 £31,390,376,501 £1.8292
17,319,607,030 15,589,400 24/03/21 £1.8422 £31,906,180,071 £1.8308
17,304,057,659 15,589,400 25/03/21 £1.8204 £31,500,306,562 £1.8325
17,288,562,604 15,589,400 26/03/21 £1.8296 £31,631,154,140 £1.8341
17,272,991,851 16,661,600 29/03/21 £1.8038 £31,157,022,701 £1.8358
17,256,350,631 16,651,864 30/03/21 £1.8914 £32,638,661,583 £1.8375
"Day 4 of buy backs and absolutely no evidence of impact at all. What a waste of money!!! Would have been better to pay as a dividend!"
@Nuri - they are only allowed to trade a certain percentage of the overall volume of shares traded on any single day so you will not notice any difference after a few days. Personally I'm a believer of buybacks especially after the constant dilution we've seen with Barclays shares over the years with Scrip dividends. The dividend will be restored quickly to the levels we've seen before the pandemic and I'd prefer to see a combination of buybacks to be done whilst the share price is this low. For long term holders like myself I think we will benefit more over time.
Lloyds has broken through the 40p barrier so let's hope we continue to recover. For those that like to speculate, or take positions (CFD's) I'm sure there will be opportunities for some fluctuation and I hope it goes your way to some profit. I'm finally back in a small profit on Barclays and my paper loss on Lloyds is down to £82,000 (yikes - but it has been much worse). Roll on 57.5p - I can wait ;-)
Let's remember that we all trade with different strategies, we all have differing opinions. Maintain respect. Some posts have dropped below the bar recently. Better to debate respectfully than sling mud.
The share buyback hasn't started yet. It will be done over the course of the next 12 months. I don't think they've announced when it will start yet but it's like this month or next. They're only allowed to transact so much of the days volume - not sure if it's 10% or so. So when they start it is likely to be daily - and an external broker will carry out the trades online throughout the day - and may decide to miss days. So they will be bought at market price and the external broker will try and get the best price each day via many many trades.
40p has finally been breached. Now it's pierced a hole lets hope it continues. I've got a log way back to my 57.56p average.
I am happy today because I'm back in the black with Barclays. I'm £83 in profit on my £67k investment. First time in a long time I've been in profit with them.