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LLPC dividend confirmed
gadgetmind
Posts: 11,130 Forumite
I've banged on here about various banks preference shares and "hybrid instruments" from time to time, particularly NWBD and the rather more speculative LLPC.
Anyway, Lloyds have just confirmed that dividends have resumed on LLPC now that the EU blocker has expired. They go XD on May 9th and pay out on May 31st.
They pay twice a year a total of 9.25% of their par of 100p and are currently still trading below that. I bought *well* below that. Dividends have no further tax for basic rate tax payers such as my wife. Happy days!
These are one of the many assets I picked up to avoid the low interest any anything else. To date, I'm up heavily on capital and future income looks very solid.
Anyway, Lloyds have just confirmed that dividends have resumed on LLPC now that the EU blocker has expired. They go XD on May 9th and pay out on May 31st.
They pay twice a year a total of 9.25% of their par of 100p and are currently still trading below that. I bought *well* below that. Dividends have no further tax for basic rate tax payers such as my wife. Happy days!
These are one of the many assets I picked up to avoid the low interest any anything else. To date, I'm up heavily on capital and future income looks very solid.
I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
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Yes I got paid on LLPE a few weeks agoAny posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.0
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Very tempting, though for those interested remember these are non-cumulative, in other words if they go through another bad patch they can opt to stop paying out and do not have to make up the missed payments when they restart.
However if they were to pause payments on these then they would not be allowed to pay out dividends to ordinary shareholders either until they restarted.0 -
Yes, non-cummulative, which means they will always trade behind the likes of NWBD et al, but this was also why LLPx were all so cheap when blocked.
I'd expect to see LLPC eventually trading at around 120p (they are now closing on 100p) and I'll decide on an ongoing basis whether to keep enjoying the dividends or to crystalise the capital gains.
Of course, Lloyds might tender for all of these at some point, which would give further capital upside.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
I feel a bit of a mug for buying the ordinaries now
Very tempting at the yield.
I'm wondering why this hasn't given the ords a bit of a lift, resuming payments on the prefs presumably means a dividend on the ordinaries in the not too distant is more likely; which I'd've thought the market would like :think:“I could see that, if not actually disgruntled, he was far from being gruntled.” - P.G. Wodehouse0 -
I feel a bit of a mug for buying the ordinaries now
I also bought some ordinaries, but only a fraction of what I put into prefs.I'm wondering why this hasn't given the ords a bit of a lift, resuming payments on the prefs presumably means a dividend on the ordinaries in the not too distant is more likely; which I'd've thought the market would like :think:
Paying anything other than a small divi on the ords will be politically difficult, and Lloyds were also leaned on to issue more ords to pay for the coupons on the prefs!
This "robbing Peter to pay Paul" suits those like me that hold a lot of Paul, but does seem to be an odd way of going about things.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
I'm wondering why this hasn't given the ords a bit of a lift
Oh, and Lloyds restarted coupons on some other of their instruments a while ago, which did help LLOY prices, but they then took another hammering from European events.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
I'm not sure I'd personally invest in these, while preference shares are "safer" than common in terms of seniority, you dont really get the benefit of any upside.
I might be interested at 15% yield
Were Lloyds one of the bailed out banks?Faith, hope, charity, these three; but the greatest of these is charity.0 -
I'm not sure I'd personally invest in these, while preference shares are "safer" than common in terms of seniority, you dont really get the benefit of any upside.
It's always good to have some fixed interest in your portfolio. OK, so these assets tend to correlate more with equities than gilts, but given what these have survived through, I expect them to keep paying me double digits per year for many a decade.I might be interested at 15% yield
Well, there are still a lot of bonds issues by Eurozone banks that you could buy ...
BTW, Graham didn't like prefs either and recommended never buying at > 80% of par.Were Lloyds one of the bailed out banks?
Yes, hence the EU-imposed blocking of dividends on all discretionary issues.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
OK, it was too tempting. My daughter is now also a holder of LLPC using some of the money from her using her 2012/13 CGT allowance. She's on a yield of just under 9.5%, which should help her through university.
There is possibly 20-30% capital upside in a few years, but only time will tell.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
I couldn't resist either
“I could see that, if not actually disgruntled, he was far from being gruntled.” - P.G. Wodehouse0
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