Lloyds share price: what to know about their upcoming dividend dates

Keep reading to discover:

• Lloyd’s recent share price performance
• The bank’s upcoming final dividend amount, ex-dividend date and record date
• Implications of the upcoming ex-dividend date

Lloyds share price: how has it been performing?

Lloyds' most recent earnings, in late July, saw the bank beat expectations with £3.7 bllion pre-tax profit in H1. IG analyst Jeremy Naylor said: "Lloyds Banking Group is domestically orientated, so pretty much insulated from what is happening further east aacross Europe. Despite setting aside £377 million to cover a possible bad debt pile, pre-tax profits came in at £3.7 billion at the first half, better than forecast, but down from last year's £3.9 bllion."

Mr Naylor said that, after the earnings, Lloyds saw its share price rise above its prior line of resistance which was established as a line of support back in December 2021, at 44.3 pence. The Lloyds share price trades at 45.25 pence as of 19th August 2022.

Lloyds' dividend outlook

The bank's interim 2022 dividend is 0.80p per share. The ex-dividend date was August 4 2022, and the payment was made on September 12 2022.

Looking ahead to the final dividend for 2022, based on previous years the ex-dividend date is likely to be in April 2023, with the payment date in May 2023.

Here're Lloyds’ recent and future dividend payments:

^{*Data from Lloyds Banking Group.}

For reference, in March 2020, the PRA told major UK banks to suspend the payment of dividends and buybacks until the close of 2020. This directive was made in response to the coronavirus pandemic, with the full breadth and depth of the economic impact at the time being hard to calculate.

The PRA lightened their stance in December 2020, saying that it would not extend the suspension of bank dividends and buybacks.

‘Is not necessary and that there is scope for banks to recommence some distributions should their boards choose to do so, within an appropriately prudent framework,’ said the PRA.

Looking forward, Lloyds management said the intention was 'to accrue dividend and resume progressive and sustainable ordinary dividend policy.'

Implications of the upcoming dividend dates?

For traders and investors, what are the consequences of the upcoming dividend dates for Lloyds?

In general terms, for investors who want to be entitled to a company’s upcoming dividend, they have to have owned the stock prior to its ex-dividend date.

Example: In the case of Lloyds, should an investor have bought the stock before August 4 (the ex-dividend date), they would have been entitled to the bank's dividend of 80p per share.

However, anyone who bought the stock after August 4 would not be entitled to the bank’s interim dividend.

Looking ahead, it will be key to pay close attention to Lloyds' next ex-dividend date. Based on previous years, that's likely to be in April 2023. Open an IG demo account or full trading or investment account and we'll keep you posted.

Key implication: A company's share price will often fall on its ex-dividend date – generally 'proportional' to the dividends being paid out to its shareholders.

This happens because dividends are typically paid in cash and in such a case, represent a distribution of retained earnings. Ultimately, dividends paid could make up a small or large percentage of a company’s overall market value and therefore trigger differing levels of volatility on the ex-dividend date.

Want to learn more? Here’re some other topics you may be interested in:

• How stock dividends are paid to IG’s share dealing accounts
• How dividend adjustments impact spread bet or CFD positions
• How to trade or invest in shares
• How you can buy shares with us from zero commission
• The differences between trading and investing