Lloyds Dividend Forecast: 2023, 2024, 2025, 2026, 2027, 2028 Analyst Predictions

Lloyds Bank shares fell 2.2% in early trading in London on Wednesday in response. The solid starting position for 2023 allowed it to raise its NIM forecast by 25 basis points to “at least 305 basis points”. While that implies a weakening of lending margins as the year progresses, it still represents an improvement on an average of 2.94% in 2022.

  1. The provisions effectively neutralized the beneficial effect of the Bank of England’s interest rate hikes throughout the year, leaving statutory profit before tax roughly unchanged at £6.93B.
  2. A policy of progressive shareholder returns, including big dividend yields, makes the Lloyds share price look super cheap to me.
  3. 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%.
  4. Besides, I think there’s a high chance Lloyds’ share price could sink as economic conditions worsen.
  5. This incidentally caused pre-tax profit to fall 6% year on year, to £3.7bn.

By contrast, if companies are not doing so well, they tend to keep their dividends flat or reduce them. If companies are doing well, they tend to raise their dividends. However, to receive the next dividend, you need to own the shares before the next ex-dividend date. Needless to say, that’s pretty chunky compared to the FTSE 100‘s historical average yield of 3.7%.

Add Lloyds Banking Group plc to receive free notifications when they declare their dividends. At present, Lloyds dividend is forecast to go up in the near term. However, there are no guarantees that it will rise from here.

Lloyds Banking Group Trailing 12 Month Dividend Summary

Exchange rate charges may adversely affect the value of shares in sterling terms, and you could lose money in sterling even if the stock price rises in the currency of origin. 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.

Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained saxo forex broker within this article. At present, the consensus 2024 dividend forecast for Lloyds is 3.1p per share. 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. At present, analysts expect Lloyds to pay out 2.8p per share in dividends for 2023.

As the Bunzl share price wobbles on FY results, do I see a top passive income buy?

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%. Lloyds upped its 2023 full-year dividend by 15%, to 2.76p per share. And if it’s really based on a “progressive and sustainable ordinary dividend policy“, there should be more to come. Besides, I think there’s a high chance Lloyds’ share price could sink as economic conditions worsen. And this could wipe out the benefit of owning the company’s shares for its dividends.

All things considered I’d rather buy other dividend stocks today. This is due to the fact that the bank currently offers an attractive dividend yield. 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. Assuming management can continue to execute its long-term strategy successfully, patient income investors could be well-rewarded in the coming years. At least, that’s the impression that analyst forecasts would suggest.

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They tell me Lloyds is doing fine, raking in cash, and paying great returns to its shareholders. And more share buybacks should boost future per-share returns too. Saima Naveed does not own shares in any of the companies mentioned.

Investors in Lloyds can expect to receive dividends in May and September. Please log in to your account or sign up in order to add this asset to your watchlist. Upgrade to MarketBeat All Access to add more stocks to your watchlist.

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This was illustrated by the IMF’s decision to reduce its GDP forecasts for the next two years. The body now expects domestic growth of 3.2% and 0.5% in 2021 and 2022 respectively, down 0.5% and 0.7%. Higher rates increase the difference between the rate which banks offer to savers and the rate they charge borrowers. And recent central bank action has raised hopes that Lloyds and its peers will enjoy the sort of margins they’ve been missing since policy makers aggressively cut rates following the 2008 financial crisis. There is no set time that you need to hold Lloyds shares to receive the dividend.

And I’ll use the cash to buy more shares while they’re still cheap… hoping they will still be cheap. Well, I thought the results would be at least as good as I expected, and the share price would hardly move. Founded in 1993 by brothers Tom and https://forexhero.info/ David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show and premium investing services. You see the outlook for Britain’s economy is darkening rapidly.

A company’s dividend yield is calculated by dividing its dividend per share by its share price and expressing the result as a percentage. Our website offers information about investing and saving, but not personal advice. 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. CEO Charlie Nunn spoke of “strong progress on our strategy and delivering increased shareholder returns“. He also told us that the bank’s “performance enabled strong capital generation and increased shareholder distributions“.

These announcements are not merely financial transactions; they are declarations of Lloyds Banking Group’s enduring strength and its commitment to shareholder value in turbulent times. This financial upsurge, achieved even as the bank prudently set aside £450 million for potential compensation claims, illuminates the strategic acumen underpinning Lloyds’ operations. For more insights, read about Lloyds’ record profits and financial strategy. City forecasts suggest that the share has a good chance of hitting current dividend forecasts, too. Projected payments for the next couple of years are covered between 2.5 and 2.7 times by anticipated earnings.

This incidentally caused pre-tax profit to fall 6% year on year, to £3.7bn. The Bank of England has raised its benchmark rate by 0.25% in each of the last five months. These helped to drive net income at Lloyds 12% higher (to £8.5bn) in the first half of 2022. So, if you want to receive the next dividend from Lloyds, you need to buy the stock before its next ex-dividend date.

Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK. 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. The decision to augment the dividend and initiate a share buyback is multifaceted, reflecting both a conviction in the bank’s robust capital position and a clear strategy to enhance shareholder returns. The dividend increase is a signal of the bank’s health and its ability to generate substantial cash flows, even in a climate of economic headwinds. The buyback, set to be completed by December 31, 2024, is poised to reshape the investment landscape for Lloyds’ shareholders.

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