Lloyds - Potentially good investment

Dunney77

Looking at investing into Lloyds as the government completes its sell-off

Thoughts?

jimjames

How does it fit in to the rest of your portfolio?


If you like the shares you can buy directly on stock exchange.

Dunney77

I am about to set up my first

Would the rise in american interest rates have a beneficial impact on the earnings of American banks? JPM etc

veryintrigued

The Half Year results are out two weeks on Friday.


Hope for another small dividend?

melbury

veryintrigued wrote: »

The Half Year results are out two weeks on Friday.


Hope for another small dividend?

I hope for a bit bigger dividend this time;)

wary

Depending on how long you're prepared to hold, I reckon it could be a good long term investment. Dividends are expected to significantly increase over the next couple of years, and once Lloyds are past their recent woes and back in private ownership, who knows ...

I personally am taking a massive punt and am hoping that the dividends will be a nice money-spinner in themselves.

Masomnia

I bought Lloyds at 48p and I'm still holding. I'm not expecting spectacular gains from here but I'd like a nice dividend yield. The message I get from the company is that that is what they're looking at delivering. I'd be amazed if the dividend wasn't increased at the next set of results, at least a little bit.

A share buy back would be nice too, but I don't think that's on the cards for a while yet.

My view is if you're happy to hold for a while I think it'll give a nice steady income.

SG27

What will happen when the government sells it's stake? How will that effect the share price?

Also can anyone explain how RBS changed it share price by adding the 0. I know why they did it just wondering how, did they reduce the number of shares for example.

bowlhead99

SG27 wrote: »

What will happen when the government sells it's stake? How will that effect the share price?

The government has been selling its stake for some time. It currently owns just under 15%, having started a regular disposals plan last December when it had about 25%

If large chunks of Lloyds come on to the market, the price will fall unless there are buyers for the shares. So far, there have been buyers for the shares. Presumably, the government does not need to sell its shares so desperately that it will sell at any price. So, it won't be selling if there isn't demand. There may be a discounted offer for retail shareholders to encourage private ownership but this would not affect the overall price massively because it will not be a large proportion of the total shares in issue.

A government sale should be positive for the long term direction of share price because it means the company is truly in public ownership, rather than having the government able to vote on corporate matters. Nobody likes state interference (unless they're offering more cash that you can't get elsewhere).

Also can anyone explain how RBS changed it share price by adding the 0. I know why they did it just wondering how, did they reduce the number of shares for example.

Yes, existing shareholders gave up old shares and were issued new ones in exchange. Ten old shares were consolidated into one new one. As the total value of the company was now split between 10% of the number of shares that were previously out there, the shares were each "worth" 10x as much as the old ones.

Pincher

Still hankering for privatisation sweeties?


I'm toying with the idea of buying BP and Shell, which is low due to Iranian oil coming soon. Now, we ask Mark Thatcher to call a few people, and start a coup or something, and get Isis to invade Iran. BP and Shell shoot backup. Easy.

longleggedhair

Any ideas when the government will launch the sale for the public to buy into?