Banking stocks

This morning, I’ve read that Lloyds Bank have announced that they are to start paying quarterly dividends from 2020:

I haven’t considered purchasing any banking stocks, yet, and was wondering how popular they are amongst our community?

Being new to Freetrade and trading in general, I’ve opted for the dividend earnings approach and so Lloyds Bank’s recent announcement might well tempt me to purchase my first banking stock.

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RBS 2008 flashback there :scream:

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I am a newbie to the world of investing but me personally i would always avoid UK banks. Unless you’re the one getting the bonuses.

I do hope most UK dividend companies follow suit with quarterly dividend distribution instead of the bi-annual distribution.

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I thoughts bank were undervalued as it is, great news!

I have a few Banks, including Lloyds. Dividends are quite good. And P/E ratios aren’t bad at the moment. This is part of a stategy of diversification though. I have stocks in a wide range of sectors

I don’t really care too much how often they payout, with a diverse portfolio I get some dividends from somwhere every month. Sometimes its just a few quid, some months it’s a couple of hundred

I’m quite invested in banks but they’re not without they’re risks. I guess it comes down to how likely you think a recession will be. I’ve liked Lloyds for a long time and I’m sat on a nice profit.

I’m not convinced that this is a good move, it will breed more volatility in the price which they really don’t need right now.

Don’t just look at the dividend frequency. Consider the likes of HSBC as well. They pay a decent dividend and held up better during the Banking crisis. If I remember rightly they didn’t take a bailout?

Great responses - thanks everyone :wink:

They where the only UK Bank not to.

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Don’t think Barclays did either

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Yup sorry you’re right. Stan Chartered didnt either

Turns out there is actually a few -https://en.wikipedia.org/wiki/2008_United_Kingdom_bank_rescue_package

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What do you think of Investec Bank Plc (INVP)?

4.7% Dividend
9x P/E
£5.2B market cap

They are the backbone of Monzo’s 1% savings rate.
Demerging their Asset Management business to list on the market.

It’s more OakNorth now. Shawbrook and Investec also provide savings pot options but many are switching from Investec as it’s not the best rate of the options available. There was also the issue that they had to pause releasing the Investec option for a few months

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I don’t like anything where its revenues are tied to political uncertainty - South Africa isn’t a place I would want to put my money right now.

5 billion for a bank is far too small. Leverage will take that down in a heartbeat if we get another drop in liquidity.

That being said - I am possibly one of the most boring investor you will ever meet.