Why are dividends still listed on companies not giving dividends?

I use the dividend yield to form a part of my investment strategy and have subsequently bought shares in some companies for this reason almost alone.
I’ve just noticed that Lloyd’s bank has a current dividend yield of 3.14% but the dividend has been cancelled since March, any thoughts on this? @Team212

We discussed this previously.

2 Likes

aside from what’s said in the linked post of @Vedran I would like to say that if you want to easily see expected dividends go to for example yahoo finance and look at the forward dividends (this data is not provided by T212 on the platform), the forward dividend listed is the expected dividend for the coming year. Be careful though as forward dividends are most reliable on predictable and stable companies, just as TTM yields.

Other than that I would recommend you to not buy shares in companies just for their dividend yields alone (be it forward on TTM) as dividends are just a way of returning cash to shareholders (albeit a sometimes less efficient way) and could worsen a companies performance. You should analyse on a case by case basis how the dividend is funded and if it would be the best use of the companies cash. Just in case: also look up the term ‘yield trap’.

Good luck with your investments though!

Thankyou for your advice, fortunately I haven’t bought any companies that will likely fail, just for the benefit of the dividend except maybe cineworld but Lloyd’s bank I did factor it in (stock has risen anyway but its not the point really).
I will have a read and do a bit more dd beforehand next time.
Thanks again
Just had a good read of that post @Vedran thanks for that I checked a couple of companies dividends with dividend max and must of not checked Lloyd’s bank for some reason. I will make sure I check each one before I purchase anymore! Massive learning curve on here you certainly need to have your wits about you and use as much outside information as possible