​Ex-dividend dates are crucial to understand – you must own Lloyds shares before this date to qualify for the upcoming dividend payment. These dates are typically set a few weeks before the actual payment date and are clearly communicated in the bank’s financial calendar. ​The dividend calendar for Lloyds typically follows a semi-annual payment structure, with announcements usually accompanying the bank’s interim and full-year results. Marking these dates in your investment calendar helps you anticipate potential income flows. ​Cost management continues to be a priority for Lloyds’ management team, with ongoing digitisation efforts helping to improve efficiency ratios.

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• As fintech and digital challengers mature, traditional banks like Lloyds may face pressure to balance competitive investments with shareholder returns, potentially influencing long-term dividend strategies.
• ​Start by researching Lloyds Banking Group thoroughly, examining its dividend history, financial statements, and strategic outlook.

These operational improvements support underlying profitability and, consequently, dividend capacity over the medium-term. ​The resolution of legacy issues, such as the car finance mis-selling investigation, represents a notable factor in Lloyds’ financial planning. The £700 million provision demonstrates how such matters can materially impact profitability and potentially dividend capacity. ​Lloyds’ Common Equity Tier 1 (CET1) ratio stood at a robust 14.3% as of 30 September 2024, slightly down from 14.6% at the end of 2023, still well above its long-term target. ​Tax treatment represents another important distinction between dividends and buybacks. ​Place your trade to buy Lloyds shares, either as a limit order or at the current market price.

​​​​​Lloyds Banking Group Dividend Forecast For 2025 and 2026​

Consider whether this approach aligns with your investment strategy when planning your Lloyds position. ​Lloyds Banking Group has maintained a progressive dividend policy in recent years, with a focus on sustainable payouts that reflect the bank’s financial health. The group’s approach to dividends aims to balance shareholder returns with capital requirements and business investment needs. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result.

• Discover how to increase your chances of trading success, with data gleaned from over 100,00 IG accounts.
• ​Cost management continues to be a priority for Lloyds’ management team, with ongoing digitisation efforts helping to improve efficiency ratios.
• Some ETPs carry additional risks depending on how they’re structured, investors should ensure they familiarise themselves with the differences before investing.
• It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.
• NatWest has focused on capital returns through substantial share buybacks, while Barclays balances its dividend approach with its more diversified business model including investment banking.
• For 5 years, Lloyds Banking Group has paid dividends, increasing them each year for the last 3 years.

For 5 years, Lloyds Banking Group has paid dividends, increasing them each year for the last 3 years. During the last fiscal year, Lloyds Banking Group’s payout ratio was 46.77%, ensuring that profits are sufficient for dividends. The most recent dividend payment by Lloyds Banking Group, made on May 20, 2025, was £0.0211 per share. September 9, 2025 has been established as the date when Lloyds Banking Group will distribute £0.0122 per share to shareholders registered before July 31, 2025.

​How to invest in Lloyds Banking Group shares

​Lloyds maintains a robust capital position with a CET1 ratio (Common Equity Tier 1) comfortably above regulatory requirements, providing a solid foundation for continued dividend payments. This capital buffer gives the bank flexibility to navigate economic uncertainties while maintaining shareholder returns. ​In its latest financial reports, Lloyds has demonstrated its commitment to returning value to shareholders through both dividend payments and share buybacks.

When is the dividend payment date of Lloyds Banking Group?

​Payment dates represent when dividends are actually distributed to eligible shareholders. Lloyds typically pays its interim dividend in September and its final dividend in May, though exact dates can vary and should be confirmed through official announcements. ​The bank’s strategic focus on growing its wealth management and insurance businesses aims to diversify income streams beyond traditional banking.

Lloyds’ loan book has shown resilience, with impairment charges lower than initially feared during recent economic challenges, supporting the bank’s capacity to maintain dividend payments. ​When comparing Lloyds’ forecast dividends to its UK banking peers, the group currently offers one of the more attractive dividend yields in the sector. This competitive position reflects the bank’s domestic focus and established retail banking operations. ​Regulatory requirements, including capital buffers mandated by the Prudential Regulation Authority, set boundaries on how much capital Lloyds can return to shareholders.

Our platform offers competitive fees and a seamless trading experience for UK investors. ​NatWest Group and Barclays, Lloyds’ main competitors, maintain different dividend profiles. NatWest has focused on capital returns through substantial share buybacks, while Barclays balances its dividend approach with its more diversified business model including investment banking. ​The Bank of England’s (BoE) approach to interest rates will significantly impact Lloyds’ profitability and, by extension, its capacity for dividend payments. As the UK’s largest mortgage lender, Lloyds’ net interest margin – the difference between what it earns on loans and pays on deposits – is highly sensitive to rate movements.

Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. While higher interest rates have recently boosted profitability, falling interest rates, economic uncertainties and potential regulatory changes could constrain capital return policies across the sector. ​HSBC and Standard Chartered, with their international footprints, offer different dividend propositions compared to Lloyds’ UK-centric model. Their exposure to Asian markets creates alternative growth and yield dynamics that domestic investors should consider when evaluating banking dividends. ​Download the IG Invest app or open a share dealing account with us to gain access to Lloyds shares.

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Success in these areas could potentially enhance dividend sustainability by reducing reliance on interest income in a volatile rate environment. ​For instance, Lloyds has recently set aside an additional £700 million to address potential costs related to a probe into historical mis-selling of car finance. This provision impacted the bank’s fourth quarter (Q4) results, with pre-tax profits reported at £1.528 billion, down from £1.775 billion in the previous year. ​These projections indicate a progressive increase in dividends over the two-year period. However, it’s important to note that dividends are not guaranteed and can be influenced by various factors, including the bank’s financial performance and regulatory considerations. Share dealing and IG Smart Portfolio accounts provided by IG Trading and Investments Ltd, CFD accounts and US options and futures accounts are provided by IG Markets Ltd, spread betting provided by IG Index Ltd.

Consider how this investment fits within your broader portfolio diversification strategy and income objectives. ​These projections are underpinned by a dividend cover ratio of 2 times in 2025 and 2.2 times in 2026, indicating that earnings are expected to comfortably cover dividend payments. Lloyds Banking Group has an annual dividend of £0.098 per share, with a yield of 6.11%. Discover how to increase your chances of trading success, with data gleaned from over 100,00 IG accounts. ​Despite these challenges, Lloyds remains committed to shareholder distributions, announcing a final dividend of 2.11 pence per share and a share buyback program of up to £1.7 billion. Lloyds Banking Group has an annual dividend of $0.17 per share, with a yield of 3.63%.

These distributions reflect the bank’s strong capital position, which remains above regulatory requirements. ​The outlook for Lloyds’ dividends through 2025 remains conditionally positive, supported by the bank’s strong capital position and stated commitment to shareholder returns. Barring significant economic deterioration, the progressive dividend policy appears sustainable. ​Lloyds’ balanced approach to capital returns, using both dividends and buybacks, gives management flexibility to adjust shareholder returns based on market conditions, regulatory requirements, and strategic priorities.