Lloyds Banking Group Plc (LYG)

[Ripcord01]

This is stock is starting to get cheap real fast. It is important to realize that LYG and LLOY are the same company. LLOY (on the London exchange) is getting upgraded while LYG (NYSE)is getting downgraded because of the currency price difference in shares.

Any bad news in the world could cause LYG to fall...April is also the expected time frame for the UK government to sell their remaining shares in the company.

The government holds a substantial amount of shares and by them putting those shares on the market it will cause a decent dip in the stock price. I think the current dip in LYG is more worry about the Crimea crisis and impending share sell.

So why should you be buying this stock? the return of the dividend. It is widely expected this company will start paying dividends again and that they will be able to consistently raise the dividend significantly over the next 5-10 years.

This is also true for most banks expecially the US banks. The fed taper is going to raise interest rates on the US treasuries..while they are still keeping the fed lending rate at a historic low. The large banks with trillions of dollars in assets will make billions of dollars in extra profit as the gap between the fed lending rate and the treasuries gets larger.