Lloyds Banking Group
Website:
Lloyds Banking Group
Index:
FTSE 100
EPIC: LLOY
Supersector:
Banks
Sector:
Banks
Subsector:
Banks
Market Cap:
£57.9B
Payout Frequency: Semi-Annual
Lloyds Banking Group Dividend Analysis and Summary
Key dividend details
- Final ordinary dividend: 2.43p per share (FY2025)
- Total ordinary dividend (FY2025): 3.65p per share, up 15% year-on-year (2024: 3.17p)
- Ex-dividend date: 09/04/2026
- Record date: 10/04/2026
- Payment date: 19/05/2026
- Dividend reinvestment plan cutoff: 27/04/2026
- Payout ratio: c.52% (3.65p DPS vs 7.0p EPS), implying ~1.9x earnings cover
- Final dividend cash cost: c.£1,429m (pre any buyback share cancellations)
- Additional capital return: ordinary share buyback of up to £1.75bn (to be completed by 31 Dec 2026)
- Total 2025 capital returns: up to £3.9bn (interim + proposed final dividends + buyback)
- Capital position: CET1 14.0%; pro forma 13.2% after the 2025 dividend and buyback accrual; Board targets c.13.0% by end-2026
- Dividend policy: progressive and sustainable; Board will now review excess capital distributions every half year in addition to the ordinary dividend
Dividend sustainability and outlook
- Coverage/earnings: Ordinary DPS (3.65p) covered ~1.9x by statutory EPS (7.0p). FY2025 RoTE 12.9% (Q4: 15.7%); 2026 RoTE guidance >16%.
- Capital generation: 2025 organic CET1 generation 147bps (or 178bps ex motor finance charge); 2026 guidance >200bps, comfortably funding both the progressive dividend and buybacks while paying down to c.13% CET1.
- Balance sheet strength: CET1 14.0% (pro forma 13.2%) vs c.12% regulatory requirement provides headroom to sustain dividends through the cycle.
- Income trajectory: NII guidance c.£14.9bn for 2026; structural hedge earnings expected to rise to ~£7.0bn (2026) and ~£8.0bn (2027), supporting distributable capacity.
- Cost and credit: Cost:income targeted at <50% in 2026; AQR expected to normalize to ~25bps (from 17bps), still consistent with dividend affordability.
Structural changes and policy signals relevant to dividends
- Capital returns mix: Ordinary buyback of up to £1.75bn alongside progressive ordinary DPS; Board will review excess capital every half year, raising the likelihood of continuing buybacks if generation remains strong.
- Portfolio actions: Full acquisition of Schroders Personal Wealth (now “Lloyds Wealth”) and sale of in-force bulk annuities to Rothesay; both tilt the group toward capital-light, fee-generative areas, supportive of sustainable distributions.
- Other transactions: Planned acquisition of Curve (subject to regulatory approval); ongoing digital and efficiency investments aimed at operating leverage—indirectly supportive of free capital for dividends.
Risks and flags to dividend stability
- Motor finance redress: Provision increased to £1.95bn; FCA final scheme rules expected by end-March 2026. Outcome uncertainty remains (volume of cases, methodology, costs). Further charges would subtract from capital generation.
- Credit normalization: 2026 AQR guided to ~25bps; a weaker macro (e.g., higher unemployment) could push impairments higher and constrain excess distributions.
- Used vehicle values: Residual value/VT pressures in UK Motor Finance increased ECL; continued volatility could weigh on earnings.
- Regulatory capital: Retail secured model/RWA headwinds persisted in 2025; Basel 3.1 from 2027 expected to be Day 1 RWA-reducing, but interim model impacts and regulatory changes can affect headroom.
- Litigation/contingencies: Ongoing legal matters (e.g., interchange, tax appeal timing) are not currently expected to be material but remain background risks.
Read more
Lloyds Banking Group Annual Dividend Yield - 3.41%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 10/04/2025 |
20/05/2025 |
Final |
2.11p |
GBX |
| 31/07/2025 |
09/09/2025 |
Interim |
1.22p |
GBX |
Total (Annual Dividends Per Share):
3.33p
Dividend Yield =
Annual Dividends Per Share (3.33p)
÷ Share Price (97.77p)
= 3.41%
Lloyds Banking Group Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 09/04/2026 |
19/05/2026 |
Final |
2.4300p |
GBX |
| 31/07/2025 |
09/09/2025 |
Interim |
1.22p |
GBX |
| 10/04/2025 |
20/05/2025 |
Final |
2.11p |
GBX |
| 01/08/2024 |
10/09/2024 |
Interim |
1.06p |
GBX |
| 11/04/2024 |
21/05/2024 |
Final |
1.84p |
GBX |
| 03/08/2023 |
12/09/2023 |
Interim |
0.92p |
GBX |
| 13/04/2023 |
23/05/2023 |
Final |
1.60p |
GBX |
| 04/08/2022 |
12/09/2022 |
Interim |
0.80p |
GBX |
| 07/04/2022 |
19/05/2022 |
Final |
1.33p |
GBX |
| 05/08/2021 |
13/09/2021 |
Interim |
0.67p |
GBX |
| 15/04/2021 |
25/05/2021 |
Final |
0.57p |
GBX |
| 08/08/2019 |
13/09/2019 |
Interim |
1.12p |
GBX |
| 04/04/2019 |
21/05/2019 |
Final |
2.14p |
GBX |
| 16/08/2018 |
26/09/2018 |
Interim |
1.07p |
GBX |
| 19/04/2018 |
29/05/2018 |
Final |
2.05p |
GBX |
| 10/08/2017 |
27/09/2017 |
Interim |
1.00p |
GBX |
| 06/04/2017 |
16/05/2017 |
Final |
1.70p |
GBX |
| 06/04/2017 |
16/05/2017 |
Special |
0.50p |
GBX |
| 11/08/2016 |
28/09/2016 |
Interim |
0.85p |
GBX |
| 07/04/2016 |
17/05/2016 |
Final |
1.50p |
GBX |
| 07/04/2016 |
17/05/2016 |
Special |
0.50p |
GBX |
| 13/08/2015 |
28/09/2015 |
Interim |
0.75p |
GBX |
| 02/04/2015 |
19/05/2015 |
Final |
0.75p |
GBX |
| 06/08/2008 |
01/10/2008 |
Interim |
11.40p |
GBX |
| 05/03/2008 |
07/05/2008 |
Final |
24.70p |
GBX |
| 08/08/2007 |
03/10/2007 |
Interim |
11.20p |
GBX |
| 07/03/2007 |
02/05/2007 |
Final |
23.50p |
GBX |
| 09/08/2006 |
04/10/2006 |
Interim |
10.70p |
GBX |
| 08/03/2006 |
03/05/2006 |
Final |
23.50p |
GBX |
| 10/08/2005 |
05/10/2005 |
Interim |
10.70p |
GBX |
| 16/03/2005 |
04/05/2005 |
Final |
23.50p |
GBX |
| Year |
Interim |
Final |
Special |
Currency |
Total |
Change |
| 2024 |
1.060 |
1.840 |
|
GBX |
2.900 |
15.070 |
| 2023 |
0.920 |
1.600 |
|
GBX |
2.520 |
18.300 |
| 2022 |
0.800 |
1.330 |
|
GBX |
2.130 |
71.770 |
| 2021 |
0.670 |
0.570 |
|
GBX |
1.240 |
-61.960 |
| 2019 |
1.120 |
2.140 |
|
GBX |
3.260 |
4.480 |
| 2018 |
1.070 |
2.050 |
|
GBX |
3.120 |
-2.500 |
| 2017 |
1.000 |
1.700 |
0.500 |
GBX |
3.200 |
12.280 |
| 2016 |
0.850 |
1.500 |
0.500 |
GBX |
2.850 |
90.000 |
| 2015 |
0.750 |
0.750 |
|
GBX |
1.500 |
-86.840 |
| 2008 |
11.400 |
|
|
GBX |
11.400 |
-68.240 |
| 2007 |
11.200 |
24.700 |
|
GBX |
35.900 |
4.970 |
| 2006 |
10.700 |
23.500 |
|
GBX |
34.200 |
0.000 |
| 2005 |
10.700 |
23.500 |
|
GBX |
34.200 |
45.530 |
| 2004 |
|
23.500 |
|
GBX |
23.500 |
|
Lloyds Banking Group Dividend Calculator
Lloyds Banking Group Dividend Growth
| Dividend Growth (1Y) |
15.14%
|
| Dividend CAGR (5Y) |
44.97%
|
| Years of Growth |
4
|
| Payout Ratio |
52.87%
|
| Buyback Yield |
3.89%
|
| Shareholder Yield |
7.53%
|
| P/E Ratio (TTM) | 14.33 |
|---|
| Forward P/E | 9.89 |
|---|
| P/FCF | – |
|---|
| Earnings Yield | 7.26% |
|---|
| FCF Yield | -22.22% |
|---|
| ROE | 10.15% |
|---|
| ROCE | – |
|---|
| Profit Margin | 25.01% |
|---|
| Operating Margin | 36.01% |
|---|
| Gross Margin | – |
|---|