The Lloyds Banking Group Plc Board has recommended a final ordinary dividend of 2 11 pence per share

And I believe earnings will come under pressure as it looks as though we’re heading into a lower interest rate environment. Saima spent the early days of her career advancing the finance office of a prominent manufacturing business. After taking a sabbatical, she decided to use her expert knowledge and apply it to the stock market. Now, 10 years later, she manages a substantial portfolio built using detailed and thorough analysis. Forecasts, by their very nature, are educated guesses and by no means guaranteed.

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Consider whether this approach aligns with your investment strategy when planning your Lloyds position. This dual approach may continue to feature in Lloyds’ capital return strategy through 2025 and beyond. Banks are complicated entities influenced by a lot of macroeconomic factors beyond their control. As such, earnings growth and, in turn, dividend growth may fall short of expectations. It’s even possible that if another economic disaster struck, dividends could be once again cancelled outright.

This means they tend to pay a greater proportion of their excess capital out in dividends compared to many other UK shares. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The Motley Fool UK has recommended Barclays Plc, HSBC Holdings, Lloyds Banking Group Plc, and Standard Chartered Plc. Between 2009 and 2013, no dividend was paid before it was eventually restored in 2014. As the bank’s bottom line continuously fluctuated due to its dependence on its investment banking arm to turn a profit, dividends have moved similarly. Looking at the latest full-year results for 2023, Lloyds has paid a total ordinary dividend of 2.76p per share.

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• When looking at the 2024 forecast, this jumps closer to 7.75%, and for the 2025 dividend forecast of 3.81p, the yield shoots to an impressive 9.11%.
• Yet the FTSE 100 company has fallen well down the charts in recent months.
• The bank is one of the biggest motor financing lenders in the UK with an estimated £15bn of borrowings on its books.
• NatWest has focused on capital returns through substantial share buybacks, while Barclays balances its dividend approach with its more diversified business model including investment banking.
• The most recent change in the company’s dividend was an increase of GBX 1.05 on Thursday, February 20, 2025.

Dividend payout ratios express the dividend as a percentage of another metric, such as earnings or cash flow, and can be used to assess dividend sustainability. Trades priced above the mid-price at the time the trade is placed are labelled as a buy; those priced below the mid-price are sells; and those priced close 50 pips a day forex day trading strategy to the mid-price or declared late are labelled ‘N/A’. The London Stock Exchange does not disclose whether a trade is a buy or a sell so this data is estimated based on the trade price received and the LSE-quoted mid-price at the point the trade is placed. Lloyds Banking Group, produced by the merger of Lloyds TSB and the Halifax banking group HBOS, is the biggest ever UK bank. The combined group, with around 145,000 staff and 3,000 branches, will control around a third of UK’s mortgages and a quarter of all savings.

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As a consequence, it faces a struggle to increase profits as the UK economy faces a prolonged period of low growth. By contrast, both of those other blue-chip operators have significant exposure to fast-growing Asia. I’m also concerned about Lloyds’ long-term growth prospects versus other FTSE 100 banks. On the plus side, BoE rate reductions could stimulate loan demand and lessen bad loans.

Lloyds Banking Group Dividends

​The bank’s strategic focus on growing its wealth management and insurance businesses aims to diversify income streams beyond traditional banking. Success in these areas could potentially enhance dividend sustainability by reducing reliance on interest income in a volatile rate environment. ​When comparing Lloyds’ forecast dividends to its UK banking peers, the group currently offers one of the more attractive dividend yields in the sector.

Here’s the dividend forecast for Lloyds shares through until 2026

The value of your investments can go down as well as up and you may get back less than you put in. Tax treatment depends on your individual circumstances and may be subject to future change. ​Dividend reinvestment plans (DRIPs) offer an option for long-term investors to compound their holdings by automatically using dividend payments to purchase additional shares.

Any performance statistics that do not adjust for exchange rate changes are likely to result in an inaccurate portrayal of real returns for sterling-based investors. The value of stocks and shares and any dividend income, may rise or fall, and is not guaranteed so you may get back less than you invested. You should not invest any money you can’t afford to lose and should not rely on any dividend income to meet your living expenses. Exchange rate charges may adversely affect the value of shares in sterling terms, and you could lose money in sterling even if the stock rises in the currency of origin. Any performance statistics that do not adjust for exchange rate changes are likely to result in inaccurate real returns for sterling-based UK investors. You should familiarise yourself with these risks before trading on margin.

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Their exposure to Asian markets creates alternative growth and yield dynamics that domestic investors should consider when evaluating banking dividends. If I only focus on the dividend yield, the Lloyds share price looks like an attractive investment for my portfolio. After all, not many businesses can offer a sustainable 6% dividend yield. ​NatWest Group and Barclays, Lloyds’ main competitors, maintain different dividend profiles. NatWest has focused on capital returns through substantial share buybacks, while Barclays balances its dividend approach with its more diversified business model including investment banking.

In other words, investors need to take the risks of investing in Lloyds shares into consideration. Options and futures are complex instruments which come with a high risk of losing money rapidly due to leverage. Before you invest, you should consider whether you understand how options and futures work, the risks of trading these instruments and whether you can afford to lose more than your original investment.

If you’re not sure which investments are right for you, please request advice, for example from our financial advisers. If you decide to invest, read our important investment notes first and remember that investments can go up and down in value, so you could get back less than you put in. ​Start by researching Lloyds Banking Group thoroughly, examining its dividend history, financial statements, and strategic outlook. Consider how the bank’s domestic focus and exposure to the UK housing market align with your investment goals and risk tolerance.

• This information has been prepared by IG, a trading name of IG Markets Limited.
• Before investing, your individual circumstances should be considered, and you may need to seek independent financial advice.
• However, recent developments, including regulatory challenges and financial provisions, have prompted a reassessment of its dividend outlook for the coming years.
• Some ETPs carry additional risks depending on how they’re structured, investors should ensure they familiarise themselves with the differences before investing.
• This article contains general educational content only and does not take into account your personal financial situation.

LLOY Dividend Payments by Quarter

Lloyds Banking Group (LLOY) has determined a dividend of £0.0211 per share, offering a yield of 3.18%. When economic conditions worsen, profits can fall through the floor as revenues dry up and loan impairments shoot higher. Its core lending activities are far from risk-free as the bank has to carefully select who it issues loans to. After all, if borrowers can’t keep up with payments, Lloyds’ cash flow gets harmed. Specializing in corporate valuation, Zaven employs a modern take on the principles set out by Benjamin Graham to find new opportunities at fair prices. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

​Ex-dividend dates are crucial to understand – you must own Lloyds shares before this date to qualify for the upcoming dividend payment. These dates are typically set a few weeks before the actual payment date and are clearly communicated in the bank’s financial calendar. ​The dividend calendar for Lloyds typically follows a semi-annual payment structure, with announcements usually accompanying the bank’s interim and full-year results. Marking these dates in your investment calendar helps you anticipate potential income flows.

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While higher interest rates have recently boosted profitability, falling interest rates, economic uncertainties and potential regulatory changes could constrain capital return policies across the sector. Should you invest, the value of your investment may rise or fall and your capital is at risk. Lloyds Banking Group (LLOY) pays an annual dividend of GBX 3 per share, with a dividend yield of 3.96%. The most recent payment of GBX 2.11 per share was paid on Tuesday, May 20, to investors who owned the stock before the ex-dividend date of Thursday, April 10.

​Lloyds maintains a robust capital position with a CET1 ratio (Common Equity Tier 1) comfortably above regulatory requirements, providing a solid foundation for continued dividend payments. This capital buffer gives the bank flexibility to navigate economic uncertainties while maintaining shareholder returns. ​In its latest financial reports, Lloyds has demonstrated its commitment to returning value to shareholders through both dividend payments and share buybacks. These distributions reflect the bank’s strong capital position, which remains above regulatory requirements. We have taken reasonable steps to ensure that any information provided is accurate at the time of publishing. If you require any personal advice or personal recommendation, please speak to an independent qualified financial adviser.