Lloyds Banking Group -Dividends

[rosyposy]

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

[emeritus]

the dividend is 3/4 of 1 Penny

[kjn2]

1830 times 0.75p per share less 20 per cent tax credit ( none returnable)

[DocHH]

Basically the nett dividend payable is 0.75p per share, viz £00.75x1830= £13.725 rounded up to the next penny. Advance Tax Credit will be shown separately on the accompanying form. Gross payment is nett dividend plus Advance Tax Credit.

[rosyposy]

Oh well I lived in a fools paradise for a little while thinking up little treats for us - might have known really........:0(
Thank you both for replying -rosy

[rosyposy]

Thanks to you too DocHH

[DocHH]

Sorry kjn, but Tax Credit on dividends is 10% of gross dividend, nothing more is payable if the recipient is a basic rate (20%) tax payer. In the event that the recipient is a higher rate tax payer, viz 40% I believe the additional payment is only at 32.5% on the dividend payment.

[Hymie]

I thought TSB shares are worthless following the takeover/merger with Lloyds and the banking collapse.

My mother has 440 TSB shares, are they worth anything?

[New Judge]

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.

[maggiebee]

Got mine too rosy, but won't be going on the world cruise just yet. Maybe get a bus as far as the docks though lol

[New Judge]

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.

[tezmand]

your lucky my cheque came today for 87 pence

[Tilly2]

How often are the dividends paid out? My Dad had a cheque for £1.69 today. He has 200 shares.

[dzug2]

Most companies pay every 6 months, but there are exceptions.

I don't know what is planned for Lloyds or TSB but they used to be twice a year

[Tilly2]

Thank you, drugz.

[Tilly2]

Sorry, dzgu2. Got your name wrong

[New Judge]

Yes there are exceptions, dzug. For example Barclays pay four times a year whilst Easyjet make only one payment annually.

I don't think we'll see any further dividend from Lloyds in 2015, but stranger things have happened.

[Tilly2]

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.