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Five Causes Why Lloyds Stock Drops
So far, Lloyds (LSE: LLOY) stocks have been a letdown in 2018. At the beginning of the year at 68p, Lloyds' stock fell to 57p today - down 16% on the previous year. Let's take a close look at the causes behind the poor overall performances. So far, Lloyds (LSE: LLOY) stocks have been a letdown in 2018.
At the beginning of the year at 68p, Lloyds' stock fell to 57p today - down 16% on the previous year. Let us take a close look at the causes behind the poor overall performances. First of all, it should be noted that the overall economy has also had a bad year so far.
Since the FTSE 100 has fallen strongly in recent week, the index now stands at around 8 points. Lloyds is therefore not the only share to collapse this year. Those are issues to which we have no answer at the moment, and insecurity scares people. So far, Lloyds has disbursed 18 billion to affected clients.
It is also noteworthy that Lloyds may have let down some investor on the dividends front this year. Last year around this hour, City analysts expected a 4p payment for the 2017 fiscal year. Yet, the bench ended up telling a divi of 3. 05/p per stock and directed additional money toward a stock buy-back.
While this was still a 20% increase, it was somewhat of a disappointment for those who expected Lloyds to make huge payments in cash. However, it was a bit of a disappointment for those who expected Lloyds to make huge payments in time. One year ago, for example, financial market experts expected a payment of a 4.48 pp per ordinary shares for the 2018 financial year. However, now the expected distribution for this year is 3. 26p per stock.
So there are five main reason why Lloyds' stock fell this year. Now that I have made this statement, I am pleased to say that I hold my Lloyds stock for the time being. I think the recent Q3 results look sound as the base gain increased by 5% and the banks did not report any worsening of credit exposure.
Lloyds equities, which have a future return of 5. Mr Sheldon holds a stake in the Lloyds Banking Group.