Barclays Bank : Will they pay a dividend this year ?

eeja

Anyone know or have a clue or even a guess ?
AGM coming up on the 23rd .
[Note....am NOT a shareholder ]

bagsacash

Barclays have indicated they want to pay a dividend this year - but apart from those who actually decide, I don't think anyone on here can say with certainty.

SavySaver_2

"As announced on 13 October 2008, in light of new capital ratios agreed with the Financial Services Authority (FSA) and in recognition of the need to maximise capital resources in the current economic climate, the Barclays Board concluded that it would not be appropriate to pay a final dividend for 2008. The Board intends to resume dividend payments in the second of 2009, from which time it is intended that dividends will be paid quarterly."

From Barclays.com

cheerfulcat

eeja, if you go to Barclays.com you can download the Spring statement. It suggests that dividends will recommence in 2009.

Count_Dante

There are a few interesting comments on the latest Peston blog posting, in particular #13 ,#37, #39, #45. They basically say that Barclays is knackered, and the sale of iShares is desperation.

I note the following sentence at the bottom of this New York Times story:

Analysts at Soci!t! G!n!rale have said that Barclays will ultimately need £20 billion of new capital, and that it will need to sell about a two-thirds stake to the British government.

http://www.nytimes.com/2009/04/10/business/global/10iht-barclays.html?ref=global-home

We must remember that the current management wanted to buy ABN Amro and were only stopped in this endevour by the presence of an even bigger fool in the form of RBS.

eeja

cheerfulcat wrote: »

eeja, if you go to Barclays.com you can download the Spring statement. It suggests that dividends will recommence in 2009.

Since we are now in 2009 that would be really great news.

If you had read earlier postings you may have guessed the reason for the enormous concern of many as to whether Barclays pay a dividend this year , be it even. .000001 P per share.

There is a covenant with their corporate bonds ( or at least in some of their corporate bonds...haven't checked them all ) which states that should the bank not pay a dividend to shareholders....any dividend ...then the bank is not obliged to service their bonds that particular year or pay a penny of the annual interest on them.
This would of course result in a huge loss to both those holding the bonds directly as well as those holding Barclays bonds indirectly through one of the many popular corporate bond funds.