Sainsbury's results are out tomorrow and it is expected that they are to announce their intentions to buy out their partner in the Sainsbury Bank venture, Lloyds, who currently own 50% of the outfit.
Tesco did the very same thing when they bought the other 50% of Tesco Finance from Royal Bank of Scotland 5 years ago.
Sainsbury's made £25m pretax profit from their share of the banking arm last year so could have an interesting future. An increase in pretax profit of around 5% is expected to be announced tomorrow which will hopefully lead to an increase in the dividend. Sainsbury's have a strong dividend policy and have seen dividend growth every year for the last 6 years.
I currently don't hold Sainsbury's but this may well change shortly pending the results.
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