Quizzes & Puzzles1 min ago
Lloyds Banking Group -Dividends
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I must be missing something obvious here so hope someone can explain please. Mr Posy has 1830 shares with TSB and after eight years without a dividend was happy to see that they have started paying one at 0.75p ! Today he received the princely sum of £13.73 after tax. How do they arrive at this figure? TIA rosy
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For more on marking an answer as the "Best Answer", please visit our FAQ.Those shares probably originated from the initial flotation of TSB in 1986, Hymie.
In 1995 the TSB merged with Lloyds. This was a “reverse takeover” (don’t ask!) and Lloyds were delisted from the Stock Exchange and the combined group was renamed Lloyds TSB Group.
Following the banking crisis of 2008 the group was “persuaded” by the government to take over Halifax Bank of Scotland (HBOS). That bank was near enough broke and the merger brought Lloyds TSB group to its knees destroying the share value.
As a result of this merger the EU ruled that the group had too many branches (!) and it had to shed around 600 under “Project Verde” which was a shambles. These branches became TSB branches and a new share issue was floated last June. I believe the float price was around £2.60. They closed tonight at £3.38 having surged in early March on suggestions of a takeover.
Hope you’ve kept up with all this but the upshot is that I believe the shares your mother holds are now Lloyds shares (but you’d have to check this). These were worth as little as about 20p around the time of the HBOS merger but are currently trading at about 88p.
In 1995 the TSB merged with Lloyds. This was a “reverse takeover” (don’t ask!) and Lloyds were delisted from the Stock Exchange and the combined group was renamed Lloyds TSB Group.
Following the banking crisis of 2008 the group was “persuaded” by the government to take over Halifax Bank of Scotland (HBOS). That bank was near enough broke and the merger brought Lloyds TSB group to its knees destroying the share value.
As a result of this merger the EU ruled that the group had too many branches (!) and it had to shed around 600 under “Project Verde” which was a shambles. These branches became TSB branches and a new share issue was floated last June. I believe the float price was around £2.60. They closed tonight at £3.38 having surged in early March on suggestions of a takeover.
Hope you’ve kept up with all this but the upshot is that I believe the shares your mother holds are now Lloyds shares (but you’d have to check this). These were worth as little as about 20p around the time of the HBOS merger but are currently trading at about 88p.
This .75p was a nominal sum paid as a statement of intent that Lloyds would return to paying a reasonable dividend in the near future. It is actually a yield of a little under 1% (tax paid) and is about the same as you can get in the bank if you're lucky.
Having said that I flogged my Lloyds shares last Friday making a tidy profit. A major broker has downgraded them to "sell" so I thought I'd take my profits and perhaps buy them back if they drop.
Having said that I flogged my Lloyds shares last Friday making a tidy profit. A major broker has downgraded them to "sell" so I thought I'd take my profits and perhaps buy them back if they drop.
My Dad had a letter from a company which was doing a search for LLoyds bank. He had forgotten he had shares in TSB and, with a bit of searching by me, we have discovered 200 10p with LLoyds.
He received a cheque for over £400. We now have the lost share certificate and as I said earlier, Dad received a cheque today for £1.69. This is all a bit of a bonus for him as he can't remember acquiring those 200 shares.
He received a cheque for over £400. We now have the lost share certificate and as I said earlier, Dad received a cheque today for £1.69. This is all a bit of a bonus for him as he can't remember acquiring those 200 shares.
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