Today, I’m looking at the latest dividend forecasts for three of the most popular UK banking stocks.
As analysts’ dividend estimates constantly fluctuate, it pays to review them every so often.
Let’s take a look at the 2017/2018 dividend forecasts for Lloyds Banking Group, Barclays and HSBC Holdings. All figures are sourced from Stockopedia.
Analysts currently expect Lloyds (LON: LLOY) to pay the following dividends:
2017 – 4.19p per share
2018 – 4.70p per share
At the current share price of 68p, those payouts equate to yields of 6.2% and 6.9%.
Over the last month, analysts have upgraded their dividend estimates for 2017 and 2018 by 0.09p and 0.11p respectively.
Analysts currently expect Barclays (LON: BARC) to pay the following dividends:
2017 – 3.05p per share
2018 – 5.63p per share
At the current share price of 205p, those payouts equate to yields of 1.5% and 2.7%.
Over the last month, analysts have held their 2017 dividend estimate flat and downgraded their 2018 estimate by 0.32p.
Analysts currently expect HSBC (LON: HSBA) to pay the following dividends:
2017 – 51c per share
2018 – 52c per share
At the current share price of 766p, those payouts equate to yields of 4.9% and 5.0%.
Over the last month, analysts have held their dividend estimates for 2017 and 2018 flat.
Which bank is the best dividend stock right now?
Lloyds Bank is the clear winner here, in my view. Not only does the bank have the highest yield, but the payout is growing at an impressive rate and analysts are upgrading their estimates.
Of course, given its UK focus, Lloyds Bank is not without risks.
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.