Shares and dividends

caveman38

It is years since I dabbled in shares and have forgot whatever little I had learned.
I just looked on my Halifax share dealing site to familiarise myself and picked for example HBOS. The share price was 69p and the 2007 dividend was 49p. Surely thatis not possible is it?

alex000

Where have you been the last few years. HBoS was making huge profits so the share price was around £10. Now they are in serious trouble so that's reflected in their current price and the fact Lloyds banking Group won't be paying a Divi for at least a year.

Biggles

The current share price is indeed 67.8p. And the last dividend was, as you say, 48.9p.

But that was the divi they were paying before all the recent unpleasantness in the banking sector, when their share price was something like 6-700p.

The forecast dividend for the year ending 31 Dec 08 is about 6.5p. It's still nearly a 10% yield, but if they're taken over by LTSB it all becomes a bit academic.

caveman38

alex000 wrote: »

Where have you been the last few years. HBoS was making huge profits so the share price was around £10. Now they are in serious trouble so that's reflected in their current price and the fact Lloyds banking Group won't be paying a Divi for at least a year.

I may be misleading you. Of course I am aware of their problems as the share price is obviously an indication of that. What I was not aware of was that the dividend would be only a fraction of last years and naivly thought that if it was similar to 2007. What a great percentage return on investment ignoring any drop in share price.
Again excuse my naivity.