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Lloyds Banking Group plc vs Royal Dutch Shell plc

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John
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Lloyds Banking Group plc vs Royal Dutch Shell plc

#6490

Postby John » November 18th, 2016, 4:31 pm

"Lloyds Banking Group plc vs Royal Dutch Shell plc: which is the worst dividend stock
By Royston Wild - Friday, 18 November, 2016"

Oh, let's see.

The one that's lost me (on paper) 92% of my capital and has paid very little income or the one that's been paying me growing dividends for 18 years and inflation-beating growth too? The second also, I understand, hasn't reduced its dividend for 70 years.

Tough call.

As usual, this expert TMF writer doesn't own either.

John

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Re: Lloyds Banking Group plc vs Royal Dutch Shell plc

#6495

Postby toofast2live » November 18th, 2016, 4:42 pm

growing dividends for 18 years and inflation-beating growth too


I do agree that poor old Royston's an awful scribbler, and fool articles ought to be ditched in favour of "seeking alpha", which has far mor stimulating content.

But I did think RDSB had ceased inflation busting increases in dividends.

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Re: Lloyds Banking Group plc vs Royal Dutch Shell plc

#6499

Postby Instep » November 18th, 2016, 4:46 pm


jackdaww
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Re: Lloyds Banking Group plc vs Royal Dutch Shell plc

#6510

Postby jackdaww » November 18th, 2016, 5:02 pm

I find some of the fool articles have some useful facts and figures, and some of the writers views fairly sensible , except messrs wild and hargreaves ...

. :)

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Re: Lloyds Banking Group plc vs Royal Dutch Shell plc

#6514

Postby Breelander » November 18th, 2016, 5:16 pm

Instep wrote:For what it's worth... :(

I'm afraid I don't feel inclined to follow any links to the Fool's articles at present - just to let them see how much their traffic falls without the boards to draw in new readers. When I do want to see what's being talked about... well... their articles are syndicated, you know...
https://uk.finance.yahoo.com/news/lloyd ... 04416.html

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Re: Lloyds Banking Group plc vs Royal Dutch Shell plc

#6627

Postby CommissarJones » November 18th, 2016, 10:39 pm

Having read the article, I have to say its point seems reasonable enough to me. I own RDSB and BP as well, and I still can't decide whether those stocks are attractive top-up candidates or value traps. Yes, the yields look great and yes, RDSB hasn't cut its dividend since World War II, but stranger things have happened and who knows where oil and gas prices will go? LLOY certainly has issues of its own, but they don't include dividend coverage, unlike the oilies.

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Re: Lloyds Banking Group plc vs Royal Dutch Shell plc

#6654

Postby John » November 19th, 2016, 12:25 am

CommissarJones wrote:Having read the article, I have to say its point seems reasonable enough to me. I own RDSB and BP as well, and I still can't decide whether those stocks are attractive top-up candidates or value traps. Yes, the yields look great and yes, RDSB hasn't cut its dividend since World War II, but stranger things have happened and who knows where oil and gas prices will go? LLOY certainly has issues of its own, but they don't include dividend coverage, unlike the oilies.


LLOY's issues don't include dividend coverage? It's 0.34 according to this site: http://investorease.com/company.php?dis ... &epic=LLOY I haven't checked the data.

LLOY was unable to pay a dividend for 7 consecutive years up to last year.

I wouldn't be surprised if RDSB does have to cut temporarily.

John.

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Re: Lloyds Banking Group plc vs Royal Dutch Shell plc

#6738

Postby Arborbridge » November 19th, 2016, 1:24 pm

Lloyds was commented on in the Telegraph today as being on of the nation's most traded shares, and of being seen as a "value play".


Arb.

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Re: Lloyds Banking Group plc vs Royal Dutch Shell plc

#6752

Postby idpickering » November 19th, 2016, 2:23 pm

Arborbridge wrote:Lloyds was commented on in the Telegraph today as being on of the nation's most traded shares, and of being seen as a "value play".


Arb.


Here it is;

"
'Lloyds is the ultimate value stock'


Lloyds is regularly the most traded stock in the UK market – British investors are obsessed.

This is despite the share price having plummeted from around 650p in 1999 at its peak down to around 380p ahead of the financial crisis. It now hovers around 60p.

The stock was hit by the EU referendum, falling by around a third. But Donald Trump’s election as US President has caused it to rebound, rising by 8pc amid expectations of higher growth and interest rates.

As one Lloyds insider said, the many staff at the banking group who are investors would be whooping in the corridors if the price went above £1 again, showing how its fortunes have changed since the 2000s.

Adrian Lowcock of Architas, an investment arm of Axa, said that as expectations for the British economy had peaked and fallen, so too had Lloyds’ share price."

http://www.telegraph.co.uk/investing/sh ... -comeback/

I have no position in Lloyds.

Ian.

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Re: Lloyds Banking Group plc vs Royal Dutch Shell plc

#6765

Postby Arborbridge » November 19th, 2016, 3:17 pm

THanks ian, for making up for my lazyness :oops:

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Re: Lloyds Banking Group plc vs Royal Dutch Shell plc

#6773

Postby 88V8 » November 19th, 2016, 4:00 pm

I bought some Lloyds ords last year or was it 2014, as a will-be dividend payer. I'm somewhat underwater and don't plan to add as I also hold a lot of their Prefs.
Lloyds didn't pay a divi because they were forbidden by the EU.

The comparison with Shell is asinine. Although I can quite imagine Shell having to make some cuts if the oil price remains flat,

V8

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Re: Lloyds Banking Group plc vs Royal Dutch Shell plc

#6778

Postby CommissarJones » November 19th, 2016, 4:44 pm

John wrote:LLOY's issues don't include dividend coverage? It's 0.34 according to this site: http://investorease.com/company.php?dis ... &epic=LLOY I haven't checked the data.

LLOY was unable to pay a dividend for 7 consecutive years up to last year.


I was recalling that Fool articles had sometimes mentioned LLOY's ample coverage and was able to find an example, published Sept. 12 in "Are Lloyds Banking Group plc's super dividends as good as they seem?":

"For one thing, even with lowered forecasts, we’re still seeing those potential payouts covered 2.3 times and 1.9 times respectively by earnings, and that seems more than adequate for a bank with such a strong balance sheet."

I am also aware of LLOY's dividend history. I am merely saying that when comparing the short-term dividend outlook for LLOY and RDSB, as the Fool article that triggered this thread was doing, and based on current conditions and without reference to history, it is not inconceivable to me that someone might pick the bank rather than the oil company. I am genuinely interested in opinions as to whether RDSB and BP are top-up candidates or value traps, as stated previously.

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Re: Lloyds Banking Group plc vs Royal Dutch Shell plc

#7942

Postby CommissarJones » November 22nd, 2016, 9:00 pm

Simon English makes the case for selling Big Oil shares in the Evening Standard today.

http://www.standard.co.uk/business/simo ... 01831.html

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Re: Lloyds Banking Group plc vs Royal Dutch Shell plc

#8045

Postby pyad » November 23rd, 2016, 9:06 am

What nobody seems to have observed is that the whole premise of the article is false. Why would anyone here even consider LLOY v RDSB when these shares are in totally unrelated sectors?

The great likelihood is that most HYPers will hold shares from both the bank and oil sectors so they are not in competition for the same HYP money.

The article was probably not written with HYPs in mind and consequently deserves no mention here but since it has, I think that even from a more general investment viewpoint the comparison of these two completely different shares is rather pointless, and for the same reason. Chalk and cheese.


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