Any relaxation of the current cap on UK bank dividends could risk public criticism. The BoE has capped dividend payments at 25% of profits or 0.2% of risk weighted assets on the balance sheet. Despite covid pandemic woes subsiding and a marked improvement in the UK economy, it may still take 2 years for dividends to creep back up to previous payout levels.
Investors have been in the " last chance saloon " for the past 10 years with this particular share, no need to alter my trading range 40P - 42P until next month's trading update release and possible re -rating of shares.
A shift in loans from higher value unsecured lending to Government - backed covid funding schemes and mortgages will inevitably dent loan book profitability although reduced impairment risk levels too.
A prospective dividend yield of 4.4% is still achievable for the current financial year, expect no further decision on quarterly dividend payments to be made until next trading update.
I would expect Bond markets to continue to gain momentum over the coming months, rising Bond yields will hit company valuations. Markets aren't quite prepared for normal, most of all there scared of being reaquainted with a an old friend Inflation !.
Quite confident now trading this share circa 40P, however forward NIMs and asset quality mortgage market share are still a major concern for the bank and investors, both are likely to remain under pressure for the foreseeable future.
eccles04 I'm predominantly a day trader, bought LGEN and Aviva last summer at a bargain basement price, still very reluctant to trade these two, both are now probably the highest yielding dividend stocks on the FTSE 100 and should provide investors with solid returns over the long -term horizon with little downside risk attached to the shares.
onelongrunner returned back to normal again confirmed by who BBC, Government !. Empty lorry containers returning back to the EU don't count. More accurate January latest only official ONS statistical EU export data figures were only published yesterday confirming the drop in trade, UKs fishermen, farmers, road hauliers, SMEs and major supermarkets may also beg to differ pre Brexit trading levels have returned back to normal again.
UK exports to the EU plunge by £5.6Bn (40%) in the first month since Brexit, they are now both firmly parked up into a "begger - thy- neighbour " cul -de sac policy approach to their future trading relationship.
RE: Can Lloyds finish this week up ?07 Mar 2021 20:48
SpreadTrader, Not just Banks, Telecoms, Supermarkets, Transport Companies all have lost their lustre with investors since the 2008 financial crash. Today there are more alternative investment vehicles and opportunities for investors to consider to create wealth outside the Stockmarket.
RE: Britains bid to create global deal in services and boost economy by billions07 Mar 2021 15:14
LTI, Highly unlikely there will be any future reversal in the Corporation Tax hike announced in last weeks Budget which will increase the overall UK tax burden to the highest level since Labour Roy Jenkins was Chancellor in the late 1960s.
Off Subject. Congratulations to " THE FAMOUS GLASGOW RANGERS " football club, winning the Scottish Premier League Championship and having once again regained their rightful pinicle position in Scottish football both on and off the pitch. Let the 55 title celabrations now officially commence.
Re: Property Rentals What Next Used car sales07 Mar 2021 09:41
Lloyds have now the reached the crossroads in a already saturated UK retail banking and mortgage market. Let us all hope incoming CEO Charlie Nunn will bring fresh ideas to the table, and will point Lloyds in a direction of a diverse range of new overseas financial markets and international corporate investment opportunities.