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.

Just a couple of small share purchases today

Quiet day today.

Just two small purchases, Game (GMG) and Lloyds Banking Group 9.25% Non-Cum Irredeemable Pref Shares (LLPC).

The LLPC purchase reduces my average buying price and, therefore, the yield when (and if) they resume payment of a coupon in 2012.

A coupon of 9.25% and today’s buying price of 68p represents a “yield” of 13.60% – WOW!