Heres the dividend forecast for Lloyds shares for 2025 and 2026! The Motley Fool UK

Under Richard’s leadership, the Good Money Guide has evolved into a valuable destination for comprehensive information and expert guidance, specialising in trading, investment, and currency exchange. His commitment to delivering high-quality insights has solidified the Good Money Guide’s standing as a well-respected resource for both customers and industry colleagues. ​Tax treatment represents another important distinction between dividends and buybacks. ​Download the IG Invest app or open a share dealing account with us to gain access to Lloyds shares. Our platform offers competitive fees and a seamless trading experience for UK investors.

The company currently pays out 37.95% of its earnings and 0.45% of its cash flow as dividends. Lloyds shares are popular with income investors, and as the share price has gone up, the next dividend is forecasted to increase. This is due to the fact that the bank currently offers an attractive dividend yield. If you’re looking for details on the next Lloyds dividend, here is everything you need to know. ​HSBC and Standard Chartered, with their international footprints, offer different dividend propositions compared to Lloyds’ UK-centric model.

Lloyds Banking Group (LLOY) Dividend Yield, Date & History

However, following the inflation that emerged in 2021, interest rates have once again increased. And while the Bank of England has started cutting rates as inflation cools off, the market consensus suggests the days of near-zero interest rates won’t be returning any time soon. Here’s everything investors need to know about the current Lloyds dividend and where it might be heading in the future. At the start of the year, Lloyds Bank announced an ambitious strategy for transforming its business. The goal is to generate a stronger long-term growth trajectory, opening the floodgates to higher, more sustainable returns. Signs of recovery in the housing market are great news for the Black Horse Bank more recently.

I slashed my monthly expenses by £300 to help me aim for a steady second income stream of £20k

• A figure of two times or above provides a wide margin of error in case profits come in below forecast.
• The combined group, with around 145,000 staff and 3,000 branches, will control around a third of UK’s mortgages and a quarter of all savings.
• Finally, Lloyds’ share price could take a pummelling if an investigation into motor finance goes against it, causing billions of pounds in financial penalties.

He has been actively investing in the stock market for the better part of a decade, managing over $1 million across multiple portfolios. 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. The FTSE firm had, in early 2024, set aside £450m to cover potential costs. But it put this amount under review in October, after the Court of Appeal ruled that undisclosed fees from finance providers to car retailers was unlawful. However, it’s important to remember that dividends are never, ever guaranteed.

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The Bank of England recently issued a warning for an “economic storm“, which is not to be taken lightly. During such a situation, banks are the first to receive the blow with increased loan defaults and a decline in profits. Needless to say, this could result in dividends taking a sharp blow as cash flow and earnings become adversely affected. And in my experience, a more holistic approach is needed to weigh the risks and rewards when picking individual stocks. Supposing that Lloyds Banking Group Plc delivers on its dividend forecast for 2023, the UK bank currently offers an attractive forward yield of 6.56% based on the current share price.

​Factors influencing future dividend payments

Income levels could also disappoint as the Bank of England steadily cuts interest rates, pulling margins lower. Net interest margins (NIMs) were already alarmingly thin at 2.95% in 2024. On top of this, predicted double-digit percentage growth is expected to comfortably outpace the impact of inflation. To put this rate of predicted growth into further perspective, dividends across the broader UK share complex are tipped to grow at an average 2% this year. In respect of its year ended 31 December 2023 (FY23), the bank paid a dividend of 2.76p a share.

This competitive position reflects the bank’s domestic focus and established retail banking operations. ​Economic conditions, particularly in the UK housing market, will continue to shape Lloyds’ performance. Any sustained property market downturn could affect mortgage lending volumes and potentially impact the bank’s dividend capacity in the medium-term. Despite its solid dividends forecasts, I would — on balance — rather find other passive income shares to buy right now.

However, despite this — and the healthy dividend yield — I don’t want to invest at the moment. The bank consistently pays out around 45% of its earnings per share in dividends, so any drop in profits is likely to lead to a cut in its payout. With the FTSE 100 as a whole averaging 3.8%, it’s easy to see why the ‘black horse bank’ remains popular with income investors. Despite this good run, I suspect most people hold the stock for its generous dividend rather than in expectation of significant capital growth. So I’m going to look at the latest forecast to see what the stock might pay between now and 2026.

• ​Download the IG Invest app or open a share dealing account with us to gain access to Lloyds shares.
• No representation or warranty is given as to the accuracy or completeness of this information.
• Signs of recovery in the housing market are great news for the Black Horse Bank more recently.
• Based on predictions prepared by analysts, dividends from Lloyds shares are expected to grow steadily over the next three years.

Poor long-term growth

Lloyds Banking Group’s most recent dividend payment of GBX 2.11 per share was made to shareholders on Tuesday, May 20, 2025. 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. But, if you want to receive the next dividend from Lloyds, you need to buy the stock before its next ex-dividend date which is the 10th march 2025. Discover how to increase your chances of trading success, with data gleaned from over 100,00 IG accounts.

And over the next couple of years the bank faces a significant threat that could deliver a hammerblow to dividends. Historical dividends may be adjusted to reflect any subsequent rights issues and corporate actions. Richard is the founder of the Good Money Guide (formerly Good Broker Guide), one of the original investment comparison sites established in 2015. With a career spanning two decades as a broker, he brings extensive expertise and knowledge to the financial landscape.

Sign up for Lloyds Banking Group plc and we’ll email you the dividend information when they declare. Dividendpedia.com is not responsible for the displayed data, its accuracy, and its update. All the information provided is for informational purposes only and should not be considered as buying, selling, or any other type of investment advice. May the only investment guide you’ll ever need 20, 2025 has been established as the date when Lloyds Banking Group will distribute £0.0211 per share to shareholders registered before April 10, 2025. Lloyds is facing a staggering misconduct bill from the Financial Conduct Authority (FCA). It relates to an investigation into whether commissions paid from motor finance providers to car dealers without the customer’s knowledge are lawful.

Based on predictions prepared by analysts, dividends from Lloyds shares are expected to grow steadily over the next three years. To the best of our knowledge, all information in this article is accurate as of time of posting. In our educational articles, a “top share” is always defined by the largest market cap at the time of last update. On this page, neither the author nor The Motley Fool have chosen a “top share” by personal opinion. With interest rates sitting close to 0% for the last decade, Lloyds’ ability to generate profit from its lending activities has been weak.