LYG Lloyds Banking Group plc - ADR

$LYG The long thesis I have with this stock involves its share repurchase program and its dividend. IMO the price of the stock matters little as long as the share repurchase program of the dividend are not cut. The short-term news story of the UK government raising taxes on banks matters to the price of the stock. If the UK government taxes banks more heavily the price of the stock might fall drastically..presenting a huge buying opportunity. If the UK government keeps taxes steady or only increases taxes marginally then the stock is likely to move up. At this point we are at a greater than 10 percent pull back from 52 week highs making any small purchase a nominal risk. If you are day trading...good luck because it could trade in either direction really fast just on a misstatement alone. I recommend keeping purchases small at this point and increase your long positions in cash.

$LYG today the Bank of England warned of potential market correction and impacts from ongoing Iran hostilities. The Macro environment is in charge, but this does not mean you have to panic. I am a long term holder of the stock and will add more if dividend yield crosses 4.5 percent. Obviously, if I think it will go lower I may hold off for even better pricing. The bank is still buying back stock and paying a dividend with further repurchases and dividend increases going forward.

$LYG we are almost at a 10 percent pull back from the 52 week high. The bank increased its share repurchase program after last earnings. There is overhang from the UK government potentially adding additional taxes on UK banks. There is fallout from the hostilities in the Persian Gulf. But...we have a mainly retail bank where the government is raising interest rates which will further raise profits for the bank. All you need to know is when rates move (in either direction) banks make more money. It when the rates remain steady that they do not. This is a solid long term hold in my portfolio. The expected dividend increase in the coming year is excellent and the likelihood of additional share repurchases is solid. At this point any Dip below $5.70 is a solid long term entry point. As someone who has held and increased my position since 2012, I probably wouldnt add unless there is a broad market crash.