Hi Karw.
RBS have progressed a rights issue to raise funds and as such future dividends will be somewhat diluted
But they're little different to LLOYDS, Barclays and any of the other larger banks, and will most likely be one of the survivors that we later see going through mergers. But you never know.
At the end of the day - long term we'll need banks and the big guns will likely fair well in picking off the primary business from the smaller failing banks.
Some believe that we're near the bottom for banks and RBS is on a historic PE of around 3.75
Lloyds TSB are also paying out at around the 9% level, so RBS isn't alone - nothing particular extraordinary so to speak.
I believe they're considering (or have already) paid out an interim dividend in shares, but will revert to cash payment for the final and they have a payout policy of 45% cash payout of earnings thereafter.
They've raised funds from the rights issue, effectively retained the interim dividend and potentially now have sufficient funds to cover any right-offs (dirty laundry) and potentially are well placed and well managed.
A penny saved is a penny earned - Benjamin Franklin
RBS have progressed a rights issue to raise funds and as such future dividends will be somewhat diluted
But they're little different to LLOYDS, Barclays and any of the other larger banks, and will most likely be one of the survivors that we later see going through mergers. But you never know.
At the end of the day - long term we'll need banks and the big guns will likely fair well in picking off the primary business from the smaller failing banks.
Some believe that we're near the bottom for banks and RBS is on a historic PE of around 3.75
Lloyds TSB are also paying out at around the 9% level, so RBS isn't alone - nothing particular extraordinary so to speak.
I believe they're considering (or have already) paid out an interim dividend in shares, but will revert to cash payment for the final and they have a payout policy of 45% cash payout of earnings thereafter.
They've raised funds from the rights issue, effectively retained the interim dividend and potentially now have sufficient funds to cover any right-offs (dirty laundry) and potentially are well placed and well managed.
A penny saved is a penny earned - Benjamin Franklin
Stocks/Bonds/Managed Futures
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