Lloyds Banking Group 6.475% Non-Cum Pref Shares (LLPE)

I’m already a holder of the  Lloyds Banking Group 9.25% Non-Cum Irredeemable Pref Shares (LLPC) which I purchased in two lots back in September and October 2011. At an average buying price of 70.75p, today’s price of 92.5p represents a profit of over 30%, and still the prospect of 9.25p income for every share held.

So when I read a recent article on the excellent DIY Income Investor blog entitled “Portfolio Buy: Lloyds Banking Group 6.475% Non-Cum Pref Shares (LLPE)“, I decided to see if it was worth adding some LLPE to my LLPC holding.

The current price (73.95p at the time of writing) represents a yield of over 8.75%.
My LLPC holding is currently yielding 13.07% if you use the buying price of 70.75p, or 10% if you use the current price of 92.5p – so LLPE isn’t quite as attractive on the face of it, but 8.75% isn’t too shabby all the same!

I must admit to not really weighing up the pros and cons of LLPE v LLPC, but unless I’m missing something then LLPC’s yield of 10% is better than LLPE’s 8.75%. If I am missing something perhaps some of our readers could let us know what they think.

And rather than repeating what the DIY Income Investor has already said on the subject, why not read his (assuming he is a he and not a she) article, and take some time to have a look through his excellent blog while you are there.

Reinvesting a couple of dividend income payments

The A.I. portfolio cash balance has been boosted by payments from Low & Bonar and National Westminster Bank Plc 9%, so the funds were used to make a couple more purchases.

First purchase was Vectura (VEC) which was tipped on Shares magazine today. Bought in at 58p.

Second was a topping up of office2office (OFF) shares bought earlier in the week. Today’s purchase at 148.5p reduced the average buying price from 162p to 153p.