What are peoples views on Lloyds at current price. Over 50% below year's high, currently yielding 8.75% has problems with Scottish Widows and is in a highly competitive albeit one with a lot of inertia by account holders.

I have a view that even if they cut the dividend by say 50% they will still yield over 4.25% which is just below Barclays at 4.75% but still above what you will earn in the Building Society or Bank.

IMHO this does mean the shares are good value in the long term and should bounce if the dividend is held or reduced by 50% or less.

What do others think?

The Golfer

Still cheap. I am certain in the next few weeks, as the FTSE moves over 4000, the momentum is going to keep it rising. We are going to see rises mainly in the banking and insurance sector, and so these stocks still have a long way to go.