Dividends are cash payments that some companies pay to their shareholders. These payments are essentially a reward for being a part-owner of the business.
Will Lloyds Bank pay a dividend in the years ahead? Let’s take a look.
2023 Lloyds Dividends
At present, the 2023 dividend forecast for Lloyds shares is 2.8p per share.
This is the average forecast among the City analysts covering the bank stock.
How much income you will receive from Lloyds will depend on how many shares you own and the exact dividend that is declared.
If you own 5,000 Lloyds shares and the bank pays total dividends of 2.8p for 2023, you will receive £140 in dividends for the year.
If you own 10,000 shares and the bank pays total dividends of 2.8p for 2023, you will receive £280 in dividends for the year.
Are Lloyds’ dividends good?
In recent years, Lloyds has paid some decent dividends.
For 2022, the bank paid out total dividends of 2.4p per share, which equates to a trailing dividend yield of about 5.5% at today’s share price.
To put that yield in perspective, the median trailing yield across the FTSE 100 index is currently about 2.9%.
The shareholder payout for Lloyds consists of an interim dividend and a final dividend.
For 2023, the interim dividend and the final dividend are expected to amount to a total of 2.8p per share.
Dividend Forecast For Lloyds In 2024 & 2025
For 2024, Lloyds is expected to pay out 3.1p per share in dividends.
For 2025, the bank is expected to pay out around 3.5p per share in dividends.
Dividend forecasts are not always accurate though.
Lloyds’ half-year 2023 results were solid. For the period, the group posted an underlying profit of £4,703 million versus £4,039 million a year earlier, and earnings per share of 3.9p versus 3.1p in H1 2022.
On the back of this performance, the group increased its interim dividend by 15% to 0.92p per share.
Based in London, Edward is a distinguished investment writer with an extensive client portfolio comprising a diverse array of prominent financial services firms across the globe. With over 15 years of hands-on experience in private wealth management and institutional asset management, both in the UK and Australia, he possesses a profound understanding of the finance industry.
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