A 5 5% dividend forecast? £2k invested in Lloyds shares could earn an investor this much by 2027

On this page, neither the author nor The Motley Fool have chosen a “top share” by personal opinion. Its core lending activities are far from risk-free as the bank has to carefully select who it issues loans to. After all, if borrowers can’t keep up with payments, Lloyds’ cash flow gets harmed.

The £2bn share buyback programme the firm launched in February underlines the strength of its balance sheet. For the next two years, they’re covered around 2.7 times by predicted earnings. A reading north of 2 times provides a wide margin of safety. Several stocks listed on the S&P 500 in America have exposure to this cutting-edge technology area with significant growth potential. Signs of recovery in the housing market are great news for the Black Horse Bank more recently.

How often does Lloyds Banking Group pay dividends?

Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. The Motley Fool UK has recommended Lloyds Banking Group Plc. Royston Wild has no position in any of the shares mentioned. Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. We don’t offer personal advice so if you’re unsure, please seek independent advice.

The expectation is for a dividend of 2p next month, with 1.1p in July, totalling 3.1p for this year. For 2026, it’s forecast to be 3.2p, rising to 3.5p in 2027. Please bear with us as we address this and restore your personalised lists.

• Between 2009 and 2013, no dividend was paid before it was eventually restored in 2014.
• But as much as Lloyds appears to be attractively valued, there are two reasons why I’m not going to buy any of its shares.
• Should you invest, the value of your investment may rise or fall and your capital is at risk.
• A UK recession could cause customers to cut back on card spending, or increase loan defaults.
• Yet more bearish analysts believe the true cost could be significantly higher if the investigation finds wrongdoing.
• In order to have received the above dividend payments you must have held shares in Lloyds Banking Group on the ex-dividend date for the various dividends.

Lloyds Banking Group

The London Stock Exchange does not disclose whether a trade is a buy or a sell so this data is estimated based on the trade price received and the LSE-quoted mid-price at the point the trade is placed. It should only be considered an indication and not a recommendation. With the words of Warren Buffett ringing in his ears, our writer considers whether the Lloyds share price will avatrade review do well over the next few years. This assumes the dividends received are reinvested when paid, which helps to compound future returns. So Lloyds looks in great shape to meet current dividend forecasts. However, I’m still not convinced I should buy its shares today.

• And it’s hard to see how the business will break out of this downturn.
• So Lloyds looks in great shape to meet current dividend forecasts.
• The most recent dividend payment by Lloyds Banking Group, made on May 21, 2024, was £0.0184 per share.
• James Beard has no position in any of the shares mentioned.
• Remember, the value of investments can fall as well as rise and you may get back less than you invest.
• The content of this article was relevant 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.

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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. If the stock falls in price, the unrealised loss would offset some of the dividends received.

Lloyds Banking Group Plc

However, a slowdown in the financial markets could equally result in bank stocks reversing course, including Lloyds. That could be especially true considering the ongoing investigation by the Financial Conduct Authority (FCA) into undisclosed commissions surrounding motor financing loans. It’s a similar story with its investment banking division. Based on expected earnings per share for 2024 (6.6p), the bank trades on a price-to-earnings ratio of 9.5.

Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Here’s everything investors need to know about the current Lloyds dividend and where it might be heading in the future. And when it comes to dividends, I also think it offers good value. If correct, it means the stock’s presently yielding 4.9%, comfortably above the FTSE 100 average. This means if it ceased trading today, sold off all its assets and used the proceeds to settle its liabilities, there’d be 77p a share left over to return to shareholders. Higher rates widen the margin between the interest banks charge to borrowers and offer to savers.

In order to have received the above dividend payments you must have held shares in Lloyds Banking Group on the ex-dividend date for the various dividends. All upcoming and previous LLOY ex-dividend https://www.forex-world.net/ dates can be found on the LLOY dividend page. The table below shows all upcoming and recently paid Lloyds Banking Group dividend payments.

Looking at the latest full-year results for 2023, Lloyds has paid a total ordinary dividend of 2.76p per share. During the same period, the bank generated basic earnings per share of 7.6p. In other words, the bank is returning just over one-third of profits back to shareholders via dividends. The exact dates on which Lloyds issues dividends to shareholders change each time. However, historically, the ex-dividend dates have been set in the first half of April and August, with actual payments typically around one month later from this date.

But on balance, things remain pretty bleak for the bank as the UK economy struggles and more misconduct costs loom Forex eas large. 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.

A UK recession could cause customers to cut back on card spending, or increase loan defaults. The first is declared as part of the annual results in February. The second is announced in July with the half-year earnings.