LLoyds TSB Dividend payment

ncooper1974

I'm looking to buy some share in Lloyds and notice that the dividend yeild is 55% - is this right?
http://www.investorrelations.lloydstsb.com/ir/share_price_charting_page.asp

anyone know when its paid, and when you need to buy to qualify?

Thanks

Lokolo

When the last dividend was paid the share price was a bit different:

http://uk.finance.yahoo.com/q/bc?s=LLOY.L&t=1y

1 year ago, share price was around 400p, now its 69p. Therefore the dividend was 55% of 69p, so about 40p.

Past yields don't guarentee future yields.

ncooper1974

i'm a bit naive on this, but if its still paying 55% then 55% of £1 or 55% of £1000 is still 55% is it not?

Lokolo wrote: »

1 year ago, share price was around 400p, now its 69p. Therefore the dividend was 55% of 69p, so about 40p.

I understand that the share price can go down, but still think 55% yeild is pretty good going...

Lokolo

The yeild is just the percentage of the dividend of the current share price, hence why its so high.

The last dividend was 40p. This could have been when the share price was 400p. Therefore the dividend yeild, at the time of giving out, was 10%.

Because the share price has now collapsed into a blackhole, the yield has gone upto 55% because 40p of 69p (the current share price) is 55%.

If tomorrow the share price goes upto 400p (HA), then the yeild displayed on that site would then be 10%.

ncooper1974

makes perfect sense now.

where can i find out when dividends are paid? and when you need to hold the shares to qualify?

Lokolo

Dividends depend on the company.

On sites theres 2 dates:

Ex dividend Date
Dividend Date

The ex-dividend date is the date of which you must own the shares at this time to get paid the dividend. The dividend date is the date when it is paid.

There is usually a 1 or 2 month gap between the ex-dividend date and the dividend date.

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Companies are not obliged to give out dividends so not all do, and if they do, doesn't mean they will again.

CLAPTON

There is NO possibility of a dividend payment for several years... it's virtually a government owned company and there would be justifiable outrage if they paid out a dividend rather than paying back some of the huge amount owing the government.

Biggles

Yes, it's never the histrocial yield you need to look at, it's the prospective yield, and their last annual report made it pretty clear there weren't going to be any for a while.

The brokers' forecast for the next two years is: 0p and 0p respectively.

sabretoothtigger

This is a good lesson why yield or any single fact should not be taken alone.

Its fake basically, you can leave it at that or you can investigate other factors like EPS and dividend cover which look at how much cash they have, etc

They recently paid out a scrip dividend, not cash but free shares. If you had sold these immediately for cash it would be have been the same as 2% interest on your lloyds holding which could be worse