Lloyds Banking Group (LON:LLOY) is planning to pay quarterly dividends, the bailed-out lender has said. The announcement comes with the blue-chip bank preparing to hold its annual general meeting (AGM) later today amid backlash over chief executive António Horta-Osório’s pension arrangements.
Lloyds’ share price has been little changed in early morning trade in London today, standing at 60.98p as of 08:06 BST, flat in percentage terms. The stock is marginally outperforming the broader UK market, with the benchmark FTSE 100 index currently 0.19 percent worse off at 7,283.12 points. The group’s shares have given up a little more than seven percent of their value over the past year, as compared with about a 5.7-percent drop in the Footsie.
Lloyds to pay quarterly dividend
Lloyds announced in a statement this morning that it will move to the payment of quarterly dividends next year, with the first quarterly dividend in respect of Q1 2020 payable in June 2020. The bank will adopt three equal interim ordinary dividend payments for the first three quarters of the year followed by, subject to performance, a larger final dividend for the fourth quarter of the year.
Today’s update comes after Lloyds posted its first-quarter results earlier this month, revealing a rise in profits. The company said at the time that it had “a progressive and sustainable ordinary dividend policy and the Board will continue to give consideration to the distribution of surplus capital at the end of the year”.
Analysts on bailed-out lender
Deutsche Bank, which is bullish on the FTSE 100 group with a ‘buy’ rating, set a target of 74p on the Lloyds share price this week, while last week, UBS, which also sees the UK lender as a ‘buy,’ set a valuation of 75p on the stock. According to MarketBeat, Lloyds currently has a consensus ‘buy’ rating and an average price target of 72.93p.