Santander dividend

planteria

from email from iii:

"Banco Santander (LSE:BNC) operates about 1,200 former Abbey National, Alliance & Leicester and Bradford & Bingley branches, and employs around 24,000 people in the UK.

True, the Spanish bank produces only 17% of profits in Britain, with the rest generated in Brazil, Mexico, Chile, the United States and throughout the rest of Europe.

Still, such diversification — and canny family management — has helped the bank sustain its payout for the last six years. What Santander likes to call “shareholder remuneration” is currently paid out at ?0.6 — or roughly 50p — a share.

With Santander’s London-traded shares at 553p, the yield is an astonishing 9%.

Sure, Santander has had its problems, and that 9% income may indeed be too good to be true. But surely any major threats to the dividend would have emerged by now.

And even if the payout is halved, the shares would yield more than Lloyds. And it would need a full axing to match the income available at RBS."

but are they they the Banco Santander Euro0.50 shares?

http://www.hl.co.uk/shares/shares-search-results/b/banco-santander-sa-eur0.50

planteria

i have been pondering buying some HSBC shares (again) to sit alongside my Standard Chartered shares in my ISA. but a 9% yield does have an appeal...and i like the potential to benefit from Latin American growth.

Thrugelmir

Santander generates 23% of profits in Brazil. Last year earnings slid 21%. So the business is under pressure. The high dividend yield reflects the risk.

planteria

and the risk is too high, Thrugelmir?

iAMaLONDONER

planteria wrote: »

i have been pondering buying some HSBC shares (again) to sit alongside my Standard Chartered shares in my ISA. but a 9% yield does have an appeal...and i like the potential to benefit from Latin American growth.

May I ask how you buy shares (as in how much do you pay for them)?

gt94sss2

The problem with Santander shares is that you need to deal with Spanish tax.

Regards
Sunil

planteria

i have been buying via Hargreaves Lansdown within my Fund & Share Account or within my ISA. i pay whatever the price is;)

and yes, Sunil. is anyone here holding Banco Santander directly?