Lloyds Banking Dividends - LLOY

Lloyds Banking Dividends - LLOY

Stock Name Stock Symbol Market Stock Type
Lloyds Banking Group Plc LLOY London Ordinary Share
  Price Change Price Change % Stock Price Last Trade
0.09 0.17% 52.59 16:35:17
Open Price Low Price High Price Close Price Previous Close
52.77 52.43 52.83 52.59 52.50
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Industry Sector

Lloyds Banking LLOY Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount

Top Dividend Posts

Top Posts
Posted at 11/1/2023 08:34 by hardup1
Lloyds Banking, Centrica, Royal Mail owner IDS top for value seekers, says platform.

Lloyds Banking, Centrica, Royal Mail owner IDS top for value seekers, says platform
Freetrade has bundled together a collection of household names based on what it says are typical value indicators

Lloyds Banking Group PLC (LSE:LLOY) is the most popular value stock among its users, according to share trading platform Freetrade, followed by Legal & General, ASOS and Deliveroo.

Value stocks are generally those that sit bottom in at a range of investment yardsticks largely because revenue growth has ground to a halt.

Freetrade has bundled together a collection of household names based on what it says are typical value indicators - good cash flow, healthy dividend yield or low ratios of share price to earnings (PE ratio) and to tangible assets (discount to book or P/B).

The platform reiterates that these are not recommendations but just the most popular stocks that meet the value criteria.

Lloyds gets in for a price-to-book of 0.6 and PE ratio of 7.6, though profits for banks can be a moveable feast and many analysts use return on capital as a more accurate measure.

Others in the list include Royal Mail owner International Distribution Services PLC with a P/B ratio of 0.4, and a P/E ratio of 9.1, which reflect a grim year for the postie though Freetrade notes the share price has been showing signs of recover

The ‘value’ credentials of Deliveroo and ASOS, meanwhile, likely reflect historic numbers that are lagging well behind the share price.

Insurers Direct Line and Legal & General are traditionally valued on dividend yield (high) and discount to the asset value.

British Gas owner Centrica and retailer Marks & Spencer also both appear and unlike the rest are both seeing decent increases in sales currently - through energy prices rising and self-help measures respectively - though in M&S’s case, it looks to be at the expense of margins currently.

Shares in Lloyds rose 0.5% to 48.3p.


Posted at 09/1/2023 09:29 by hardup1
Why interest rate sensitivity makes Lloyds shares a buy for 2023.

Lloyds (LSE:LLOY) shares are up ever so slightly over the past 12 months. However, throughout most of the year the stock has pushed downwards until a recent rally.

So what’s next for 2023? Well, I’m broadly confident that the stock will continue its rally and City analysts suggest the dividend might be due for a much-anticipated rise. Let’s take a closer look at why I’ll buy more of this stock.

A multi-billion pound tailwind
Interest rate sensitivity is providing Lloyds with a huge tailwind. The Bank of England (BoE) base rate is now 3.5% and analysts see it hitting 4%, or higher, in 2023.

This means that net interest margins (NIMs) — the difference between lending and savings rates — are growing. The bank said the NIM was forecast to reach 2.9% by the end of the year, and it could grow further in 2023.

But there’s another bonus here. Lloyds, like other banks, also earns interest on its central bank deposits. And the higher rates gets, the more Lloyds earns.

Analysts have highlighted that for every 25 point basis hike, Lloyds will earn around £200m in income from reserves held with the BoE.

So with the base rate up over 300 points in 2022, Lloyds could be pulling in around £2.5bn in extra revenue from its £145.9bn of eligible assets and £78.3bn held as central bank reserves.

But why Lloyds? Well, I’m picking the business for my portfolio because it has greater interest rate sensitivity than other banks. This is due to its funding composition and business model. Unlike other banks, Lloyds doesn’t have an investment arm and is highly reliant on interest income from mortgages.

Bad debt?
The next few months could play out a few ways for Lloyds. In Q3, impairment charges soared to £668m from a release of £119m a year ago as bad debt concerns increased.

I’m hopeful that not all of these funds will be needed to cover the cost of debt turning bad, but time will tell.

There are some positive signs right now. Wholesale gas prices, a core feature contributing to this cost-of-living crisis, are falling considerably. European prices for delivery in February fell by 4.3% to €73.7 a megawatt hour on Tuesday.

Shareholders have been keenly awaiting an increase in dividend payments. The stock currently has a 4.6% dividend yield, and that’s pretty good. I see Lloyds as a pretty safe bet. So to get 4.6% a year in dividends alone is a big bonus, as far as I’m concerned.

And, in spite of the tough economic outlook, City analysts are expecting a full-year dividend of 2.4p in 2022, rising to 2.7p and 3p in 2023 and 2024 respectively. The 2024 figure represents a 25% increase from the current dividend.


Posted at 13/12/2022 16:10 by hardup1
Lloyds shares: a solid dividend choice for 2023?

Lloyds shares have had mediocre 2022. The first weeks of the year saw the bank’s shares break above 50p as investors geared up for Bank of England rate hikes and the benefits of higher interest rates for Lloyds’ profitability.

However, Lloyds’ foray above the 50p mark was short lived. The tragedy in Ukraine began to unfold and the western world was gripped by a cost of living crisis as energy bills soared.

The Lloyds share price has been in a steady downtrend in 2023, making a series of lower highs, the most recent of which was a failure to break 47.5p.

In November, we questioned whether the Lloyds share price would reach 50p by Christmas. Although there is a possibility this is achieved, the recent pull back from 47.5p will add an additional resistance level to any move to the upside.

Indeed, Lloyds has staged a significant rally over the past 6 weeks, but the 50p level may be a bridge too far before the end of 2022.

Lloyds dividend
Lloyds shares may not be a selection that provides a huge amount of capital appreciation in early 2023. If experts at the Bank of England and UK chancellor are right, the UK is headed for a recession that will impact Lloyds customers and curtail the banks profit growth.

The recession isn’t expected to be deep, but it is expected to be prolonged.

One wouldn’t expect a huge impact on profits as Lloyds will broadly benefit from higher interest rates, but it’s difficult to see a situation where Lloyds profits grow significantly.

A steady level of profit for Lloyds in 2023 means the company will be in a strong position to continue to pay dividends. There is also scope for dividend increases.

Lloyds dividend cover is 3.9x, leaving more than enough room to pay additional dividends to shareholders. Investors should expect a measured approach to increasing dividends by Lloyds and it would be a surprise if payouts aren’t increased incrementally going forward.

A damaging recession could delay a dividend hike but the current 4.4% yield makes Lloyds a solid dividend choice for 2023 with the potential for capital appreciation from a fairly valued Lloyds share price.


Posted at 06/12/2022 08:41 by hardup1
Insider: a big Lloyds Bank share trade by FTSE 100 boardroom veteran.

A former Barclays executive who joined the board of Lloyds Banking Group
LLOY last month has spent £200,000 making one of the lender’s biggest insider purchases of the year.

Cathy Turner’s investment, which took place on Wednesday at a price of 46.9p, follows her appointment as a non-executive director at the start of November.

It was the biggest purchase by a board member since Lloyds chair Robin Budenberg bought 500,000 shares in the aftermath of February’s annual results at a price of 47.4p.

Turner’s acquisition of 424,113 shares already gives her one of the largest shareholdings among the non-executive directors on the Lloyds board.

She knows financial services and the UK banking sector well, having worked in senior executive positions at Barclays with responsibilities spanning human resources, executive compensation, investor relations, strategy and brand marketing.

Turner also serves on the boards of fellow FTSE 100-listed stock Rentokil Initial
where she heads the remuneration committee, and instrument technology business Spectris.

Last week’s purchase by Turner came at the end of a month in which Lloyds shares have shown signs of momentum. They rose 10% in November but remain within this year’s 40p and 50p range, despite the significant boost to margins from higher interest rates and evidence of resilience in the jobs market.

Fears over a house price slump have dampened investor enthusiasm towards the Halifax mortgages owner, even though many City analysts argue that UK banks are fundamentally different from a lending risk perspective than in past cycles.

UBS’s Jason Napier has Lloyds as his top pick in the UK banking sector and believes shares should be trading at 70p. He said the third quarter earnings season had exposed some attractive valuations in a UK banking sector that trades on 5.5 times forecast earnings.

He is particularly positive on Lloyds due to a yield of 5% and the potential for February’s annual results to include a shares buyback of £2.25 billion worth 7% of market value.


Posted at 07/11/2022 12:33 by hardup1
Lloyds shares: should you buy for income?
The Lloyds share price has remained frustratingly subdued since their earnings updates a couple of weeks ago and the dark clouds gathering above the UK economy suggest Lloyds shares could stay depressed in the immediate future.

The capital appreciation element from investing in Lloyds may be postponed as we move through the winter months into the spring, at which time we may see a shift in monetary policy, lower inflation rates, and overall market sentiment.

Lloyds shares may trade within their 40-43.5p range for an extended period meaning investors would have to rely on dividend income as compensation for the wait.

Third quarter profits at the bank were robust enough to support the share price, but provisions for bad debts were a warning of economic uncertainty.

However, there is undoubtedly the chance Lloyds jump back above 50p on positive developments in the UK economy, and the 4.7% Lloyds dividend yield adds an extra attraction for investors.

Lloyds Dividend.
The bank has gone ex-dividend in early to mid April in the past two years and investors will be eyeing their final dividend payout next year which makes up the lion’s shares of their payout during the year.

Lloyds paid 1.33p as final dividend earlier this year and investors will be hoping this is at least maintained after the benefits of higher interest rates on profits.

Much will rest on the health of the UK economy and the level of future provisions Lloyds will have to make for bad debts, as well as demand for mortgages.

News today that UK house prices were falling will be a cause for concern, but many experts predicts any downside in UK house prices will be minimal.

With a yield of 4.7%, Lloyds has a better yield than the majority of FTSE 100 shares and is well covered at 3.9x. This means there is plenty of space to increase the dividend – should profits hold at current levels.

Lloyds share price was trading at 42.7p at the time of writing; up 1.7% on the day but down 10% year to date.


Posted at 28/10/2022 12:42 by richie1218
a bit of lite reading while we await the BOE meeting next week ...

Lloyds Bank: a strong quarter reflects strength and prudent planning
27th October 2022 by Richard Hunter from interactive investor

A robust showing from the bank in Q3 coupled with a dividend yield of 5% means this blue-chip remains attractive to investors, writes Richard Hunter.

Despite being labelled as something of a barometer for the struggling UK economy, Lloyds Banking Group has had a strong quarter which underlines its strength and prudent planning.

As expected after the release of bank results from the US, UK banks have thus far mirrored the increase in credit impairment provisions, which has drastically altered the headline numbers. For Lloyds, a further impairment in the quarter of £668 million compares to a release of £119 million a year previous, bringing the cumulative total this year to a provision of £1.045 billion versus a release of £853 million in the first nine months of 2021. The quarterly year-on-year swing has inevitably fed through to marring the overall number, with pre-tax profit of £1.51 billion being down by 26% on the previous year’s result of £2.03 billion.

However, underneath the bonnet there are a number of areas of growth which augur well for the upcoming challenges.

Loans and advances to customers increased by £7.7 billion in the quarter including – importantly – growth in the mortgage business, in which Lloyds is a major player and where any recent bond market volatility has yet to have any significant impact. Within this growth, unsecured loans and credit card balances have risen, although the group has not seen any material increase in bad debts and defaults, despite the conservative approach it has taken in making provisions for a tougher environment ahead.

Coupled with the rising interest rate backdrop, the bread and butter business has therefore seen some benefit, with most of the key metrics forging ahead as a result. Net Interest Income rose to £4.6 billion from £4.3 billion in the second quarter, with Net Interest Margin improving over that period from 2.87% to 2.98%.

In addition, despite an increase in costs resulting from planned technology expenditure, most notably the drive towards digitisation which will result in significant future savings, the cost/income ratio remains the one to beat in the sector. For the third quarter, the ratio was 47.8%, which compares with a number of 51.8% at the end of the half-year, and which brings the year-to-date figure to 50%, which is comfortably ahead of the ratios generally being seen elsewhere.

At the same time, and as with its peers, a strong balance sheet awash with capital leaves the bank in a stable place. The capital cushion, or CET1 ratio stands at 15%, up from 14.7% at the half-year, and well in advance of the bank’s own target of 12.5%. The Liquidity Coverage ratio has also risen to 146% from 142%, leaving the bank with an eye on future shareholder returns. In the meantime, a dividend yield of 5% remains most attractive given the current interest rate backdrop and the paucity of decent cash savings rates.

In all, this is a robust showing from Lloyds. On an underlying basis, and stripping out the provisions, underlying profit increased by 22% in the quarter to £1.73 billion and is ahead by 29% in the year to date. The Pensions and Investments business previously known as Wealth has seen an increase of 6% year-on-year in income, which is another sign of potential further down the road as the bank looks to transform and yet grow its business at the same time. The share price has tended to reflect concerns on the wider UK economy and its faltering prospects, and has fallen by 13% over the last year, as compared to a drop of 3% for the wider FTSE 100. This has not deterred longer-term supporters of the story, however, with the market consensus remaining at a buy.

Posted at 03/10/2022 15:55 by marktime1231
Shareholder return from buybacks is not always the full return, they dilute by handing themselves millions of our shares. But they would anyway.

Real return comes when the dividend is increased, and causes the share price to pick up. Yes LLOY dividend is a pretty poor distribution compared to eps, but a big payday would invite a political backlash. They still owe us the dividend held back during lockdown, I haven't forgotten or forgiven that. But if they want to go for another year or two of buybacks it would make sense to restrain the dividend and keep a lid on the share price

Fine, I can wait for the future rewards. But if they award themselves hundreds of millions in shares again while we are having to be patient ... oh, I just remembered, LLOY don't give a damn about us.

Posted at 14/9/2022 07:38 by richie1218
another article on the UK banks...

"btw if anyone is waiting for Barclays to pay out the Lloy dividend like myself, apparently they received the payment late from Lloy and it should be in your accounts by end of play today"...

Lloyds, StanChart and NatWest offer most upside from interest rate hikes

The new PM's support for energy bills is "likely" to result in the Bank of England lifting interest rates to 4% next year, JPMorgan said

Lloyds Banking Group PLC (LSE:LLOY) and Standard Chartered PLC (LSE:STAN) shares offer the most potential update from expected rising net interest income for lenders as the Bank of England lifts rates ever higher, according to JPMorgan.

As banks enjoy the improvements in net interest income (NII) from rate rises so far in 2022, JPMorgan analysts said they see the FTSE 350-listed lenders as "defensively positioned from a capital perspective", with normalised return on tangible equity (RoTE) on higher rates expected to zoom faster than expected to around 11-16%.

However, medium-term risks are higher, the analysts noted.

They believe that new prime minister Liz Truss and chancellor Kwasi Kwarteng's recent announcement of support for energy bills is "likely" to result in the Bank of England's monetary policy committee raising interest rates to 4% next year, which obviously means households and businesses will pay more for mortgages/loans.

"Although this package and further stimulus in the form of lower tax rates is incrementally helpful for NII and near-term asset quality will stay resilient, medium term risks are higher with rates heading to a level where debt serviceability could be an issue for some borrowers."

In other words, bad debts could swell.

Also, the JPM analysts said the probability of recession is "higher" in 2023, so they assume that the MPC will cut the base rate to 3% in 2024.

Despite this, their NII forecasts are 5% above consensus for 2023/24, but earnings per share estimates are below consensus due to higher impairment assumptions (no doubt from the worries about debt serviceability).

For Lloyds, the analysts upped their EPS forecasts by almost 2% to 6.93p for this year and 3.5% to 6.98p for 2023 and for NatWest Group PLC (LSE:NWG) by 7% to 34.74p and 10.5% to 39.44p respectively.

JPM's pecking order remains as follows: Lloyds, Natwest, Barclays PLC (LSE:BARC), Virgin Money UK PLC (LSE:VMUK), Close Brothers Group PLC (LSE:CBG) within the domestic, and StanChart over HSBC Holdings PLC (LSE:HSBA) for the international.

From a bottom up perspective, the analysts said they see "the highest incremental upside" in Lloyds and StanChart, followed by NatWest.

Price targets for Natwest were upped to 350p from 330p and for VMUK to 200p from 190p.

Posted at 15/8/2022 16:00 by richie1218

Lloyds share price is about 65% undervalued. Should you buy?

By: Crispus Nyaga on Aug 12, 2022

Lloyds share price made a bullish breakout after its strong results.
A DCF calculation established that the stock is about 65% undervalued.
The stock will likely continue it recovery process in the coming months.

Lloyds Bank (LON: LLOY) share price continued its slow recovery after the UK published better-than-expected economic data. The shares rose to a high of 45.90p, which is higher than the July low of 40.80.

UK economic decline
Lloyds is the biggest retail and commercial bank in the UK with over 26 million customers. The firm operates through its eponymous brand and other companies like Halifax, Bank of Scotland, Scottish Widows, Schroders Personal Wealth, Embark, and Citra among others.

Lloyds Bank is primarily a British brand that has no major operations abroad. As a result, its stock tends to react whenever the UK publishes important economic data. On Friday, numbers published by the Office of National Statistics (ONS) showed that the UK economy contracted by 0.6% in June after it expanded by 0.4% in the previous month.

Additional data revealed that the country’s manufacturing production declined by 1.6% in June while industrial production fell by 0.9%. The two declines were better than the median estimates decline of 1.8% and 1.3%.

These numbers came a week after the Bank of England (BoE) decided to hike interest rates by 0.50% to fight the elevated inflation. In a statement, the bank’s governor warned that the country could slip to a recession in the fourth quarter.

Lloyds Bank also published relatively upbeat first-half results, helped by the rising interest rates. The firm said that its profit after tax rose to 2.8 billion pounds while its net income rose to 8.5 billion pounds. Its loans and advances to customers rose by 7.5 billion pounds to 456 billion pounds.

According to Simply Wall St, Lloyds share price is currently undervalued. A DCF calculation found that the company share price was about 65% undervalued. They believe that it should be trading at 125p. Further, its price-to-earnings ratio is below that of its peers.

The four-hour chart shows that the LLOY share price found a strong support at 41.92p, where it has struggled to move below since April. The stock then made a strong comeback above the descending trendline that is shown in blue.

Lloyds share price has moved above the 25-day and 50-day moving averages while the MACD has moved above the neutral point. Therefore, the outlook for the shares is currently bullish, with the next key resistance being at 50p.

Posted at 02/8/2022 18:43 by jrphoenixw2
21050/UnaStubbs: '"Lloyds looks cheap - Keep buying" Russ Mould "Questor" - The Daily Telegraph today hTTps://ibb.co/LYdVKx9

To amplify for those who cannot access^:
'This bank hasn’t been this cheap since 2012 – and it’s going to give billions to shareholders

Questor share tip: the bank looks in good shape by all measures and the shares appear to be pricing in a lot of bad news
By Russ Mould 2 August 2022 • 6:00am

An increase in the first-half dividend, upgraded profit guidance for the year and very modest loan losses and litigation costs all put a nice sheen on the interim results from Lloyds Banking Group and bolster the investment case for the bank we set out in May, especially as the valuation appears to be pricing in a much gloomier outlook.

The shares trade at a 17pc discount to the 54.2p the bank’s tangible book value per share, offer a 5pc yield and come on a single-digit earnings multiple. The economic outlook may be difficult but it can be argued that the stock is pricing in a lot of the potential bad news already.

Lloyds’ shares have fallen by about 20pc from this year’s peak in January and trade no higher now than they did in late 2012, even though the bank has paid out £11.8bn in dividends and returned another £2.1bn in cash to shareholders via buybacks over the past decade.

That equates to 45pc of the bank’s current market value and there are further cash returns to come: Lloyds is increasing its first‑half dividend by more than expected, to 0.8p a share from 0.67p a year ago.

Despite concerns over the fragile state of the British economy, the risk of a housing market slowdown and increased bad loan losses, the first-half pre-tax profits of £3.7bn beat forecasts. The interim numbers also underpinned full-year 2022 pre-tax profit forecasts of £6.6bn, especially as the chief executive, Charlie Nunn, raised guidance for two key swing factors for the bank’s earnings.

----Statistics box-------------

Lloyds Banking Group key facts

Market value: £30.9bn
Turnover (Dec 2022 estimate): £17.5bn
Pre-tax profits (Dec 2022 est): £7bn
Yield (Dec 2022 est): 5.2pc
Most recent year’s divi: 2p
Loan to deposit ratio (June 2022): 95pc
Return on equity (June 2022): 13.2pc
Cash conv ratio (June 2022): 68pc
p/e ratio (Dec 2022 est): 7.4

First, he now expects a net interest margin of more than 2.8 percentage points, compared with a previous forecast of 2.7 percentage points and last year’s outcome of 2.54 percentage points. Second, the asset quality ratio is expected to come in below the earlier expectation of 0.2pc. That means fewer loan losses than expected.

Put those alongside an unchanged forecast for operating costs of £8.8bn and Lloyds is now looking for a return on tangible equity of around 13pc against 13.8pc last year, when Nunn had initially steered the market to expect something like 11pc for 2022.

Any profit forecast upgrades will bolster confidence in Lloyds’ ability to keep returning any surplus capital to shareholders via dividends and buybacks. The forecast dividend yield represents a premium to the FTSE 100 and the earnings multiple comes at a discount.

This factors in a lot of potential pain already and it might not take a lot to get investors to take a more positive view of the shares in view of the lowly expectations. Lloyds still looks very cheap. Keep buying.

Questor says: buy
Ticker: LLOY
Share price at close: 45.06p

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