How Lloyds Banking Group PLC (LLOY) Might Deliver a Dividend

The minority view among analysts is that there could be a dividend for the current year, announced with Lloyds’ preliminary results during March 2014. The majority view among analysts — and a number of unnamed ‘industry’ and ‘political’ sources cited in the financial press — is for a first dividend announcement during March 2015.

Let’s finish with a few numbers. The table below shows the high, low and consensus analyst estimates for Lloyds Banking Group PLC (LON:LLOY)’ dividends for the next two years.

Source: Morningstar.

If the analysts are right — even the most bullish — Lloyds won’t be a great income story for the next couple of years. Maybe by March 2016 new investors today could be getting a reasonable yield on the 62 pence they’re paying.

The article How Lloyds Banking Might Deliver a Dividend originally appeared on Fool.com and is written by G. A. Chester.

G. A. Chester does not own any shares mentioned in this article. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

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