December dividend forecasts – Lloyds Bank, Barclays, HSBC

HSBC Dividend forecast 2018

Analysts’ earnings and dividend estimates are subject to constant change.

So I thought it would be a good idea to regularly update readers with the dividend forecast changes of key UK dividend stocks, at the start of each month.

I’ll start today with the UK banking sector.

Let’s take a look at the latest dividend forecasts for Lloyds, Barclays and HSBC. All figures are sourced from Stockopedia.

Lloyds Bank

Analysts currently expect Lloyds to pay the following dividends:

2017 – 4.10p per share
2018 – 4.59p per share

At the current share price of 65p, those payouts equate to yields of 6.3% and 7.1%.

In the last month, analysts have upgraded their dividend estimates for 2017 and 2018 by 0.083p and 0.044p respectively.

Barclays

Analysts currently expect Barclays to pay the following dividends:

2017 – 3.06p per share
2018 – 5.92p per share

At the current share price of 189p, those payouts equate to yields of 1.6% and 3.1%.

In the last month, analysts have held their 2017 dividend estimate flat and downgraded their 2018 estimate by 0.41p.

HSBC Holdings

Analysts currently expect HSBC to pay the following dividends:

2017 – 51c per share
2018 – 51c per share

At the current share price of 730p, those payouts equate to yields of 5.2% and 5.2%.

In the last month, analysts have upgraded their dividend estimates by 0.001c and 0.001c (negligible).

Which bank has the best dividend momentum?

For me, the clear winner here is Lloyds. The bank has a high yield, high growth of yield, and analysts are upgrading their dividend estimates.

Disclosure: Edward Sheldon, CFA owns shares in Lloyds Banking Group. This article is provided for general information only and is not intended to be investment advice. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
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