Under Richard’s leadership, the Good Money Guide has evolved into a valuable destination for comprehensive information and expert guidance, specialising in trading, investment, and currency exchange. His commitment to delivering high-quality insights has solidified the Good Money Guide’s standing as a well-respected resource for both customers and industry colleagues. Tax treatment represents another important distinction between dividends and buybacks. Download the IG Invest app or open a share dealing account with us to gain access to Lloyds shares. Our platform offers competitive fees and a seamless trading experience for UK investors.
Here’s the dividend forecast for Lloyds shares through to 2027!
The Bank of England recently issued a warning for an “economic storm“, which is not to be taken lightly. During such a situation, banks are the first to receive the blow with increased loan defaults and a decline in profits. Needless to say, this could result in dividends taking a sharp blow as cash flow and earnings become adversely affected. And in my experience, a more holistic approach is needed to weigh the risks and rewards when picking individual stocks. Supposing that Lloyds Banking Group Plc delivers on its dividend forecast for 2023, the UK bank currently offers an attractive forward yield of 6.56% based on the current share price.
Premium Investing Services
Sign up for Lloyds Banking Group plc and we’ll email you the dividend information when they declare. Dividendpedia.com is not responsible for the displayed data, its accuracy, and its update. All the information provided is for informational purposes only and should not be considered as buying, selling, or any other type of investment advice. May 20, 2025 has been established as the date when Lloyds Banking Group will distribute £0.0211 per share to shareholders registered before April 10, 2025. Lloyds is facing a staggering misconduct bill from the Financial Conduct Authority (FCA). It relates to an investigation into whether commissions paid from motor finance providers to car dealers without the customer’s knowledge are lawful.
That could be especially true considering the ongoing investigation by the Financial Conduct Authority (FCA) into undisclosed commissions surrounding motor financing loans. In that case, it suggests that buying Lloyds shares today could lock in a 9.6% dividend yield over the next four years. However, it’s essential to always take analyst predictions with a pinch of salt. Comparing this payout to the current share price of 53p reveals that Lloyds shares currently offer an attractive dividend yield of 5.2%. However, changes to shareholder payouts or fluctuations in the stock price can change the yield quickly.
How to invest in Lloyds Banking Group shares
However, following the inflation that emerged in 2021, interest rates have once again increased. And while the Bank of England has started cutting rates as inflation cools off, the market consensus suggests the days of near-zero interest rates won’t be returning any time soon. Here’s everything investors need to know about the current Lloyds dividend and where it might be heading in the future. At the start of the year, Lloyds Bank announced an ambitious strategy for transforming its business. The goal is to generate a stronger long-term growth trajectory, opening what is the forex trading secrets and tips of success the floodgates to higher, more sustainable returns. Signs of recovery in the housing market are great news for the Black Horse Bank more recently.
For the first two quarters of 2024, it set aside £101m to cover losses, compared to £662m during the same period in 2023. However, despite these concerns, the stock appears to offer good value. Its market cap of £36.5bn is around 20% lower than its book value at 30 June 2024, of £45.1bn.
INVEST
- This means they tend to pay a greater proportion of their excess capital out in dividends compared to many other UK shares.
- Lloyds’ Common Equity Tier 1 (CET1) ratio stood at a robust 14.3% as of 30 September 2024, slightly down from 14.6% at the end of 2023, still well above its long-term target.
- You should familiarise yourself with these risks before trading on margin.
- Go long or short on thousands of international stocks with spread bets and CFDs.
Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
- This provision impacted the bank’s fourth quarter (Q4) results, with pre-tax profits reported at £1.528 billion, down from £1.775 billion in the previous year.
- These dates are typically set a few weeks before the actual payment date and are clearly communicated in the bank’s financial calendar.
- Any sustained property market downturn could affect mortgage lending volumes and potentially impact the bank’s dividend capacity in the medium-term.
- But can its payouts continue to provide a reliable passive income during a recession?
- Quickly compare vetted accounts to see which providers are most appropriate for you.
Are Lloyds shares a good investment?
Based on predictions prepared by analysts, dividends from Lloyds shares are expected to grow steadily over the next three years. To the best of our knowledge, all information in this article is accurate as of time of posting. In our educational articles, a “top share” is always defined by the largest market cap at the time of last update. On this page, neither the author nor The Motley Fool have chosen a “top share” by personal opinion. With interest rates sitting close to 0% for the last decade, Lloyds’ ability to generate profit from its lending activities has been weak.
Search for shares, funds or articles
During the last fiscal year, Lloyds Banking Group’s payout ratio was 46.77%, ensuring that profits are sufficient for dividends. In Lloyds Banking Group, dividends are distributed on a semiannual scheme during April and August. Stay on top of upcoming market-moving events with our customisable economic calendar. Try a risk-free trade in your demo account, and see whether you’re on to something. Go long or short on thousands of international stocks with spread bets and CFDs.
Lloyds Banking Group’s most recent dividend payment of GBX 2.11 per share was made to shareholders on Tuesday, May 20, 2025. A stock’s ex-dividend date is the day on which all shares bought no longer come attached with the right to be paid the next dividend. But, if you want to receive the next dividend from Lloyds, you need to buy the stock before its next ex-dividend date which is the 10th march 2025. Discover how to increase your chances of trading success, with data gleaned from over 100,00 IG accounts.
This competitive position reflects the bank’s domestic focus and established retail banking operations. Economic conditions, particularly in the UK housing market, will continue to shape Lloyds’ performance. Any sustained property market downturn could affect mortgage lending volumes and potentially impact the bank’s dividend capacity in the medium-term. Despite its solid dividends forecasts, I would — on balance — rather find other passive income shares to buy right now.
The company currently pays out 37.95% of its earnings and 0.45% of its cash flow as dividends. Lloyds shares are popular with income investors, and as the share price has gone up, the next dividend is forecasted to increase. This is due to the fact that the bank currently offers an attractive dividend yield. If you’re looking for details on the next Lloyds dividend, here is everything you need to know. HSBC and Standard Chartered, with their international footprints, offer different dividend propositions compared to Lloyds’ UK-centric model.
However, despite this — and the healthy dividend yield — I don’t want to invest at the moment. The bank consistently pays out around 45% of its earnings per share in dividends, so any drop in profits is likely to lead to a cut in its payout. With the FTSE 100 as a whole averaging 3.8%, it’s easy to see why the ‘black horse bank’ remains popular with income investors. Despite this good run, I suspect most people hold the stock for its generous dividend rather than in expectation of significant capital growth. So I’m going to look at the latest forecast to see what the stock might pay between now and 2026.
The competitive landscape for UK banking dividends continues to evolve. As fintech and digital challengers mature, traditional banks like Lloyds may face pressure to balance competitive investments with shareholder returns, potentially influencing long-term dividend strategies. We have taken reasonable steps to ensure that any information provided by The Motley Fool Ltd, is accurate at the time of publishing. The content provided has not taken into account the particular circumstances of any specific individual or group of individuals and does not constitute personal advice or a personal recommendation. No content should be relied upon as constituting personal advice or a personal recommendation, when making your decisions. If you require any personal advice or recommendations, please speak to an independent qualified financial adviser.
He has been actively investing in the stock market for the better part of a decade, managing over $1 million across multiple portfolios. But right now the risk of whopping costs related to the Financial Conduct Authority (FCA) probe remains significant. Morgan Stanley estimates this could total £30bn, while HSBC puts it at an even-higher £44bn. The FTSE firm had, in early 2024, set aside £450m to cover potential costs. But it put this amount under review in October, after the Court of Appeal ruled that undisclosed fees from finance providers to car retailers was unlawful. However, it’s important to remember that dividends are never, ever guaranteed.