An 8pc yield would make Lloyds impossible to ignore
Now free to pay out dividends, the forecast yields on bank shares are substantial and growing
16 July 2021 • 5:06am
England is gearing up for Freedom Day on Monday, even though the promised bonfire of restrictions looks more like a modest barbeque. But shareholders in Britain’s banks were handed a break from Covid rules a week early.
The Bank of England has scrapped restrictions on bank dividends imposed at the onset of the pandemic. In March last year, it requested lenders halt dividend payments, only relaxing the rules in December to allow payouts to resume, but capped at 25pc of quarterly profits.
Two investment experts help a reader with their portfolio
In this new series, Telegraph Money will analyse readers portfolios looking at the good, the bad and the ugly and providing recommendations on how savings pots can be improved.
Teaching yourself about the stock market and picking funds for the first time is a daunting task. But Anna Taylor, 63 from Surrey, was determined not to use a financial adviser when she had £255,000 to invest after selling a buy-to-let property in 2016.
The retired editor began investing for income. She bought British stock funds and took out around £12,000 a year in dividends – a 4.7pc yield. However, British stocks fell and the value of her portfolio had dipped to £215,000 at the start of 2021. Now, she has rejigged her funds and is more focused on growing the value rather than taking out income.
Telegraph Money asks two experts to rate reader Jame Arben’s portfolio
In this new series, Telegraph Money will analyse readers portfolios looking at the good, the bad and the ugly and providing recommendations on how savings pots can be improved. Read previous versions here
Turning 40 and realising you have not planned for retirement is a nightmare for some, for James Arben, it was a reality.
The saxophonist from London has spent his life touring, playing Glastonbury and even performing with Led Zeppelin frontman Robert Plant. But while enjoying the moment he failed to plan for his future.
“I panicked when I got to 40 when I realised I had nothing outside of a tiny teachers’ pension I get for giving music lessons a couple of days a week,” he said.