Lloyds bank dividend return?

veryintrigued

Is tomorrow the day?

http://www.standard.co.uk/business/markets/nick-goodway-bank-on-further-progress-after-lloyds-delivers-dividend-delight-10067698.html

http://www.thisismoney.co.uk/money/markets/article-2964938/Lloyds-shareholders-course-receive-dividend-payments-time-2007.html

bowlhead99

Could be!

I'm still holding their preference shares which have been paying out dividends every 6 months other than the bare minimum time when they weren't allowed; they've bumped up to all time highs (150p+ from 140p at December), which will be on anticipation that interest rates stay low while dividends will start again on the ordinary shares ASAP and provide another layer of protection. It wouldn't be a surprise at all to see a dividend announced tomorrow morning.

The prefs have returned 350%+ since the depths of despair in 2009, not including all the dividends (although I didn't have them at the absolute lowest when the theoretical yield was off the scale). Now the yield's dropped closer to the 6% range I'll look to offload some more in the coming months, just wondering if they will eke out another penny or two on tomorrow's news.

Good to see the taxpayer is continuing to get its bailout money back.
Plus, they give me 4% in my current account and regular saver and free cinema tickets so I'm pretty happy with them!

veryintrigued

It could even be a whole penny!!

bowlhead99

veryintrigued wrote: »

It could even be a whole penny!!

A penny on 70-80p is about 1.3 or 1.4% so better than a kick in the teeth and plenty of scope to grow it.

I'm getting 9.375p split into two chunks every year on the 150p share price of the C prefs which is a bit more than 4x the yield that the ordinaries would be paying at a penny a year. But as the ordinaries can grow the yield and grow the capital they're obviously a better long term prospect if you think Lloyds are here to stay.

veryintrigued

bowlhead99 wrote: »

and plenty of scope to grow it.

Agreed and hopefully key for most of us.

veryintrigued

Ok, not quite 1p but a great step in the right direction!
http://www.bbc.com/news/business-31655343

JenniferK

veryintrigued wrote: »

It could even be a whole penny!!

0.75p. A start.

wary

JenniferK wrote: »

0.75p. A start.

This equates to £650 for us, so it is indeed better than a kick in the teeth, even though it is not as high as the 1.1p figure I'd seen touted.

I presume dividends will be paid twice yearly?

According to a report I read recently, the dividend is likely to quickly increase although I don't know how much credibility we can place on this. Regardless, I'm in LLOY for the long run for the capital growth in the share value, and dividends to cover the loss of interest during this period will be a nice bonus.

bowlhead99

per the RNS


"The Board has recommended a dividend of 0.75 pence per ordinary share in respect of 2014, amounting to £535 million. The Group's aim is to have a progressive dividend policy, with dividends starting at a modest level and increasing over the medium term to a dividend payout ratio of at least 50 per cent of sustainable earnings. Subject to performance, the intention is to pay an interim and final dividend for 2015."

So yes, twice a year with the intention of increasing if / when they can afford it

geoffken

wary wrote: »

This equates to £650 for us, so it is indeed better than a kick in the teeth, even though it is not as high as the 1.1p figure I'd seen touted.

I presume dividends will be paid twice yearly?

According to a report I read recently, the dividend is likely to quickly increase although I don't know how much credibility we can place on this. Regardless, I'm in LLOY for the long run for the capital growth in the share value, and dividends to cover the loss of interest during this period will be a nice bonus.

Wow.
Do you really have 86000 shares as 65000 * .75p would suggest

wary

geoffken wrote: »

Wow.
Do you really have 86000 shares as 65000 * .75p would suggest

86906 between us (my wife & I) ... at the last count. So a healthy dividend will be a nice little money spinner for us :j