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  • FIRST POST
    • veryintrigued
    • By veryintrigued 8th Mar 18, 6:19 AM
    • 2,746Posts
    • 2,317Thanks
    veryintrigued
    Lloyd's bank share buy back commences...
    • #1
    • 8th Mar 18, 6:19 AM
    Lloyd's bank share buy back commences... 8th Mar 18 at 6:19 AM
    Will this be the trigger for a shift in the share price?

    Is this buy back mechanism widely used?
Page 2
    • Theta101
    • By Theta101 19th Apr 18, 5:22 PM
    • 139 Posts
    • 29 Thanks
    Theta101
    Ex-Dividend today also, 2.05 pence.
    • Tom99
    • By Tom99 20th Apr 18, 3:23 AM
    • 4,047 Posts
    • 2,836 Thanks
    Tom99
    For a potentially lower risk investment there is always their preference shares (the ones with 9.25% nominal dividends paid in May and November (LLPC) have a yield a little over 6% and would be seen as more defensive, albeit without the same capital growth potential. Though if/when interest rates rise they would be expected to fall from their highish price to improve the yield.
    Originally posted by bowlhead99
    Out of interest how do you assess the risk of that sort of preference share? Its a good yield compared with cash but:

    • The value may go down as interest rates go up?
    • Are Lloyds guaranteed to make each payment or are there circumstances when they need not pay?
    • Is there a risk of Lloyds buying back at par?
    • How does the risk/return compare with say a Lloyds corporate bond, say the 9.625% 04/04/23 which has a running yield of 7.3% and a GRY of 2.8%?
    • veryintrigued
    • By veryintrigued 28th Aug 18, 6:13 AM
    • 2,746 Posts
    • 2,317 Thanks
    veryintrigued
    The buyback scheme has been completed.

    1,577,908,423 shares 'worth' one billion pounds.
    • dealer wins
    • By dealer wins 28th Aug 18, 12:31 PM
    • 6,380 Posts
    • 12,794 Thanks
    dealer wins
    The buyback scheme has been completed.

    1,577,908,423 shares 'worth' one billion pounds.
    Originally posted by veryintrigued
    They got a decent price I think!
    Choose life
    • veryintrigued
    • By veryintrigued 28th Aug 18, 2:22 PM
    • 2,746 Posts
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    veryintrigued
    They got a decent price I think!
    Originally posted by dealer wins
    Lately especially - tens of millions bought for around 60p.
    • veryintrigued
    • By veryintrigued 17th Feb 19, 1:12 PM
    • 2,746 Posts
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    veryintrigued
    Sounds as if another buy back is on the cards?

    Look to find out more within the results this week?
    • veryintrigued
    • By veryintrigued 20th Feb 19, 6:11 AM
    • 2,746 Posts
    • 2,317 Thanks
    veryintrigued
    Sounds as if another buy back is on the cards?

    Look to find out more within the results this week?
    Originally posted by veryintrigued
    From this morning results:

    Total ordinary dividend of 3.21 pence per share, up 5 per cent on 2017, and a proposed share buyback of up to £1.75 billion representing a total capital return of up to £4.0 billion (2017: £3.2 billion ), increase of up to 26 per cent

    To put that's into context, last year's buyback was £1 billion
    Last edited by veryintrigued; 20-02-2019 at 6:31 AM.
    • maxie014
    • By maxie014 20th Feb 19, 7:42 AM
    • 178 Posts
    • 89 Thanks
    maxie014
    Hope it goes better than standard life aberdeens share buyback.
    Between that and the merger the share price has halfed.
    • Reaper
    • By Reaper 20th Feb 19, 8:19 AM
    • 6,481 Posts
    • 4,836 Thanks
    Reaper
    Some people are cynical about buybacks
    Originally posted by bowlhead99
    I'm one of those people. All too often they are used to artificially boost the Earnings Per Share figure and/or make more money for already overpaid executives. I also feel it is often a sign of a lack of ideas with what to do with spare cash. Businesses ought to be investing money and making a return on it. That's what they do.

    Occasionally it serves a purpose such as when the share price is temporarily undervalued, but that's pretty rare IMO.

    There's a few pros and cons here if people want to read more
    https://www.investopedia.com/articles/stocks/10/share-buybacks.asp
    • StevieJ
    • By StevieJ 20th Feb 19, 10:09 AM
    • 19,537 Posts
    • 32,529 Thanks
    StevieJ
    I'm one of those people. All too often they are used to artificially boost the Earnings Per Share figure and/or make more money for already overpaid executives. I also feel it is often a sign of a lack of ideas with what to do with spare cash. Businesses ought to be investing money and making a return on it. That's what they do.

    Occasionally it serves a purpose such as when the share price is temporarily undervalued, but that's pretty rare IMO.

    There's a few pros and cons here if people want to read more
    https://www.investopedia.com/articles/stocks/10/share-buybacks.asp
    Originally posted by Reaper

    You mean like the current/recent Lloyds share price?
    Government: "Should we get a pet?" 52%: "Yes" Government: "OK, we'll get a cat" 1/2 of 52%: "Oh no, I hate cats. I wanted a dog."
    • veryintrigued
    • By veryintrigued 1st Mar 19, 6:11 AM
    • 2,746 Posts
    • 2,317 Thanks
    veryintrigued
    Next share buyback commences - news release
    1 March 2019



    LLOYDS BANKING GROUP COMMENCES SHARE BUYBACK PROGRAMME

    Lloyds Banking Group plc (the 'Company') is today launching a share buy-back programme to repurchase up to £1.75 billion of ordinary shares, as previously announced on 20 February 2019.



    The Company has entered into agreements with Morgan Stanley & Co. International plc and UBS AG, London Branch (the 'Joint Brokers') to conduct the share buyback programme on its behalf and to make trading decisions under the programme independently of the Company. Under the terms of the programme, the maximum consideration is £1.75 billion . The programme will commence on 1 March 2019 and will end no later than 31 December 2019. The sole purpose of the programme is to reduce the ordinary share capital of the Company.



    The Joint Brokers will purchase the Company's ordinary shares as principal and sell them on to the Company in accordance with the terms of their engagement. The Company intends to cancel the shares it purchases through the programme.



    Any purchases of ordinary shares by the Company in relation to this announcement will be made in accordance with certain pre-set parameters set out in the terms of each Joint Broker's engagement, the general authority of the Company to repurchase shares granted by shareholders at the Company's annual general meeting held on 24 May 2018 (which permits the Company to purchase no more than 7,219,629,615 of the Company's ordinary shares), the EU Market Abuse Regulation (596/2014), the Commission Delegated Regulation (2016/1052) and Chapter 12 of the Financial Conduct Authority's Listing Rules.



    For the avoidance of doubt, no repurchases will be made in the United States or in respect of the Company's American Depositary Receipts.



    References in this announcement to EU regulation shall be deemed to be to the equivalent laws of the United Kingdom if the United Kingdom is no longer part of the EU.



    - END -
    • veryintrigued
    • By veryintrigued 16th May 19, 6:59 AM
    • 2,746 Posts
    • 2,317 Thanks
    veryintrigued
    Lloyds banking group announces intention to pay quarterly dividends
    Lloyds Banking Group is today announcing that it will move to the payment of quarterly dividends in 2020, with the first quarterly dividend in respect of Q1 2020 payable in June 2020.



    The new approach will be to adopt three equal interim ordinary dividend payments for the first three quarters of the year followed by, subject to performance, a larger final dividend for the fourth quarter of the year. The first three quarterly payments, payable in June, September and December will be 20 per cent of the previous year's total ordinary dividend per share. The fourth quarter payment will be announced with the full year results, with the amount continuing to deliver a full year dividend payment that reflects the Group's financial performance and our objective of a progressive and sustainable ordinary dividend. The final dividend will continue to be paid in May, following approval at the AGM.



    The Group has c.2.4million shareholders, the vast majority of whom are retail investors, and this approach will provide a more regular flow of dividend income to all shareholders whilst accelerating the receipt of payments.



    In addition to the Group's progressive and sustainable ordinary dividend policy the Board will continue to give consideration to the distribution of surplus capital at the end of each year.



    Proposed payment dates, record dates and ex dividend dates for the 2020 payments will be announced in due course and published on the Group website.



    This move to quarterly dividends does not impact the existing payment approach so all shareholders will continue to receive dividends in the same way they currently do (Cheque, direct credit or DRIP). Additional Q&A on the changes, including how retail shareholders can move to direct credit payments, is available on the LBG website
    • pjcox2005
    • By pjcox2005 16th May 19, 1:49 PM
    • 623 Posts
    • 702 Thanks
    pjcox2005
    I'm sure I did an old thread where I couldn't understand why the Lloyds share price has hardly shifted over 10 years despite the continued increase in profits, share buy backs, reintroduction of dividends etc.


    A year or so later I still don't understand it. Surely the fear of a downturn can't supress it continually. Oh well, happy to hold for dividend purposes for now.
    • Thrugelmir
    • By Thrugelmir 16th May 19, 4:41 PM
    • 63,105 Posts
    • 56,023 Thanks
    Thrugelmir

    A year or so later I still don't understand it. Surely the fear of a downturn can't supress it continually. Oh well, happy to hold for dividend purposes for now.
    Originally posted by pjcox2005
    Days of boom growth for banks are over. Lloyds fortunes are linked to that of the UK economy. Going forward may well become akin to a boring utility stock.
    "'The mistakes we make as investors is when the market's going up, we think it's going to go up forever. When the market goes down, we think it's going to go down forever. Neither of those things actually happen. Doesn't do anything forever. It's by the moment.'" - John Bogle
    • 6022tivo
    • By 6022tivo 16th May 19, 5:03 PM
    • 582 Posts
    • 132 Thanks
    6022tivo
    Just for interest. I think the government get 1% or 1.5% duty of some sort on trades??

    Is this correct, and does it apply to these?
    • ColdIron
    • By ColdIron 16th May 19, 5:15 PM
    • 5,199 Posts
    • 7,064 Thanks
    ColdIron
    0.5% Stamp Duty Reserve Tax (SDRT) on UK share purchases (not sales)
    https://www.gov.uk/tax-buy-shares
    • Apodemus
    • By Apodemus 18th May 19, 6:53 AM
    • 1,301 Posts
    • 1,090 Thanks
    Apodemus
    Days of boom growth for banks are over. Lloyds fortunes are linked to that of the UK economy. Going forward may well become akin to a boring utility stock.
    Originally posted by Thrugelmir
    Which is, of course, the role that banking stocks traditionally held in an old-fashioned, “widows and orphans” portfolio. Low risk, dependable dividends, no dramas...until the 80s and 90s deregulation boom shook things up. Question is whether we are returning to the older, safer banking style or will forget the lessons of the last few years...
    • Thrugelmir
    • By Thrugelmir 18th May 19, 8:10 AM
    • 63,105 Posts
    • 56,023 Thanks
    Thrugelmir
    Which is, of course, the role that banking stocks traditionally held in an old-fashioned, “widows and orphans” portfolio. Low risk, dependable dividends, no dramas...until the 80s and 90s deregulation boom shook things up. Question is whether we are returning to the older, safer banking style or will forget the lessons of the last few years...
    Originally posted by Apodemus
    With the level of regulation in force now over the banks. Seems a certainty.
    "'The mistakes we make as investors is when the market's going up, we think it's going to go up forever. When the market goes down, we think it's going to go down forever. Neither of those things actually happen. Doesn't do anything forever. It's by the moment.'" - John Bogle
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