Lloyds Dividend Payment

typistretired

I don't know how many ordinary shares I now have with Lloyds they were originally freebies from Halifax but £1.94 pay out today was a bit of a damp squid, especially as I have been getting £25.90 per year on the preference shares. At least it got me to sign up to Equiniti online.

bowlhead99

I get rather more than £25.90 from my Lloyds prefs, but I do have more than a few hundred shares. It's a decent coupon and seems fairly secure these days, though I won't be reinvesting this months dividends in more of them. The share price for the prefs has more than doubled from the days of when they had stopped paying the divs, and could come a cropper if interest rise much over the next few years.

But the £1.94 of dividends on your ordinaries pales into insignificance in the context of their capital return, as although they're not worth anything like as much as they used to be, you could have quadrupled your money buying in at the low point in late 2011 with plenty of potential remaining, while the prefs will surely struggle to deliver more capital appreciation from this level.

As an aside, if your dividend payment feels like a damp squid, then it's bang on expectations. I never met a squid that wasn't damp, apart from dead ones. Whereas a damp squib is likely to disappoint and be rather less explosive than you hope.

veryintrigued

typistretired wrote: »

I don't know how many ordinary shares I now have with Lloyds they were originally freebies from Halifax but £1.94 pay out today was a bit of a damp squid, especially as I have been getting £25.90 per year on the preference shares. At least it got me to sign up to Equiniti online.

Dividend was 0.75p. I make that around 259.

I went for the option to buy more shares with the dividend

steelbru

I would imagine that a lot of folk will go for re-investing in extra shares.

As these will be getting bought on the open market, hopefully that will trigger a rise in demand, and therefore a small rise is share price ?

typistretired

Remember the days when Halifax and Bradley & Bingley free shares were worth quite a few thousand pounds.

typistretired

veryintrigued wrote: »

Dividend was 0.75p. I make that around 259.

I went for the option to buy more shares with the dividend

If I had gone that route might have got two shares.

Thrugelmir

steelbru wrote: »

As these will be getting bought on the open market, hopefully that will trigger a rise in demand, and therefore a small rise is share price ?

How many shares has the Treasury yet to unload onto the market?

Peter999_2

Apparently there are 71,373,735,357 shares in LBG. The government own just under 20% therefore this would be 14274747071 shares.

They have done remarkably well to come back so strongly. When you consider RBS who haven't repaid a penny. A lot of hard work by a lot of people.

Fiveboy

Well I got a big fat cheque for £3.29 for my dividend

Thrugelmir

Peter999 wrote: »

They have done remarkably well to come back so strongly. When you consider RBS who haven't repaid a penny. A lot of hard work by a lot of people.

The core Lloyds business was sound. The crud was HBOS which in retrospect was a basket case in 2008.

plunt

steelbru wrote: »

I would imagine that a lot of folk will go for re-investing in extra shares.

As these will be getting bought on the open market, hopefully that will trigger a rise in demand, and therefore a small rise is share price ?

sadly this simply doesnt work, as otherwise everyone would buy share right before the payout I initially had that idea when i starting investing years ago!


managed to get £25 in dividends. But the real point of this dividend wasnt to give investors cash back, it was to show they are allowed to get investors cash back. Hence why the market like it, its a sign of things to come!


Also remember as the conservatives are in power, they promised us small people could buy some lloyds shares at a discount with potentially a bonus too. So try not to load up too heavily as you wouldnt want to be over exposed!