Lloyds Banking Group shares go ex-dividend this week

Lloyds ex dividend

Lloyds Banking Group (LON: LLOY) shares go ex-dividend this week on Thursday 19th April. Here’s what you need to know.

Ex-dividend date

A stock’s ex-dividend date is the day on which all shares bought no longer come attached with the right to be paid the most recently declared dividend.

That means that if you don’t yet own Lloyds shares, but want to pocket Lloyds’ FY2017 final dividend, you need to buy the stock before Thursday.

How much is the FY2017 final payout?

Lloyds announced in February that the final dividend for FY2017 will be 2.05p per share. If you own Lloyds shares before the ex-dividend date of 19 April, you will be entitled to this dividend.

As an example, if you bought £1,000 worth of Lloyds shares at the current share price of 68.2p, you would receive 1,466 shares (not including commissions), and could, therefore, expect to receive a dividend payout of £30.05 (1,466 x 2.05p).

When will the dividend be paid?

Lloyds’ FY2017 final dividend will be paid on 29 May 2018.

What will happen to Lloyds’ share price on the ex-dividend date?

In general, a stock usually falls on its ex-dividend date by roughly the amount of the dividend that is set to be paid. So, don’t be surprised if Lloyds shares fall by around 2p on Thursday. This is not always exact though.

What is the dividend yield on Lloyds shares?

Lloyds’ total dividend for FY2017 was 3.05p per share. At the share price of 68.2p, that’s a trailing yield of 4.5%.

The consensus estimate for Lloyds’ FY2018 dividend is currently 3.58p per share. At the current share price, that equates to a prospective yield of 5.2%.

 

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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