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 ↑

Investors have piled into Lloyds Banking Group PLC (ticker: LLOY) over the last six months, with the stock up approximately 65% in that period.

As the ex-dividend date looms, Lloyds finished out Monday’s session significantly higher, rising 2.62% to close at 44.39p per share.

Looking at the technicals, according to IG Chief Market Analyst Chris Beauchamp:

'Lloyds has continued its steady ascent, having broken above the 40.3p high that marked the peak at the end of 2020. A month-long drop in January saw the price bounce from 32p, mirroring the move up from mid-December and creating a durable double bottom.’

Mr Beauchamp added:

‘This bounce carried the price back to the December high and then led to a break higher. Following on from this the uptrend has been steady and relentless, with elevated stochastic readings pointing towards the strength of the trend.’

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 ex-dividend date?

For traders, what are the consequences of Lloyds upcoming ex-dividend date?

In general terms, the key implication is that 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’s some other topics you may be interested in:

• How dividend adjustments impact CFD positions
• How to open a Live Trading Account with us