Lloyds Banking Group is a large British financial services company that has been around since the mid-1800s. Since its establishment, Lloyds has grown to become one of the largest banking groups in the United Kingdom. The company is listed on the London Stock Exchange, and its shares are traded on the FTSE 100 index. Over the years, Lloyds has paid out dividends to its shareholders, and its dividend history offers a good indication of the company's financial performance and stability.
Lloyds Banking Group Dividend History
Lloyds Banking Group has a long dividend history, stretching back to its formation in 1884. Over the years, the company has consistently paid out dividends to its shareholders, with the amount of dividend paid out varying depending on the company's financial performance. In 2021, Lloyds paid out a dividend of 4.75 pence per share, the highest amount since 2014. This was a 47% increase on the 3.25 pence per share dividend paid out in 2020.
The company's dividend payments have been relatively consistent over the years, with Lloyds only reducing its dividend once between 2009 and 2021. That reduction occurred in 2020, when the company reduced its dividend from 5.25 pence per share in 2019 to 3.25 pence per share in 2020. This reduction was largely due to the economic impacts of the coronavirus pandemic.
Lloyds Banking Group Dividend Yield
The dividend yield of a company is a measure of how much dividend is paid out relative to the company's share price. Lloyds Banking Group's dividend yield in 2021 was 4.3%, which is slightly higher than the UK banking sector average of 3.9%. This suggests that Lloyds is an attractive option for investors who are looking for a higher dividend yield.
Lloyds Banking Group Dividend Outlook
Lloyds Banking Group is expected to maintain its dividend payments in 2021 and beyond. The company is well-capitalised and has a strong balance sheet, which should allow it to continue to pay out dividends to shareholders in the coming years. Additionally, the company is expected to benefit from the economic recovery in the UK, which should lead to higher profits and, consequently, higher dividend payments.
Conclusion
Lloyds Banking Group has a long dividend history and is expected to maintain its dividend payments in the years to come. The company's dividend yield is higher than the UK banking sector average, making it an attractive option for investors looking for a higher dividend yield. With a strong balance sheet and an expected economic recovery in the UK, Lloyds Banking Group's dividend outlook looks promising.