By Malcolm Stacey | Tuesday 6 June 2017
Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Hello Share Dredgers. Once again I bring to you Lloyds Banking Group (LLOY) as a share worth considering. This simple statement will draw flak from my good friend Wildrides, but the case for Lloyds is getting better.
I am still running at a mighty loss with my rather large holding, but the gap is narrowing and maybe soon I’ll be finally into profit - helped by returning dividends. The forward yield I have is approaching 6.5%. Do you own many shares that can beat that?
This bank has a safety-first policy these days. It’s moving back towards basic banking, cutting down on the casino stuff. It has a quarter of British accounts and accounts for nearly as many private deposits. It now has the most high street branches in the UK and a fifth of British mortgages are under its auspices.
Its government-owned shares - which were a worry - are now back in private hands. And I suppose we can be reasonably assured that if Lloyds ever slides back into previous troubles, the government would still step in to save it.
Lloyds has been making war on costs. The profits are not brill at the moment, but that will change once PPI is out of the way. Bad debts are also under control now and costly restructuring is mostly in the past.
The share price has been as high as 85p I recall. Then it stumbled back to the sixties. But we are now tickling 70p again and that ultimate goal of a quid a throw is beginning to seem possible. Though sadly likely not too soon.
The shares are some of the most traded shares in the tallies announced every week by most of the popular brokers. This makes daily prices quite volatile. But I would be very surprised if ‘sells’ outnumber ‘buys’ from now on.
And now its across to the Punter’s Return.
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