Dividends

As communicated to shareholders in the 2019 results shareholder letter, we are trialling the offer of a contribution towards the commission paid by shareholders who participate in the Dividend Reinvestment Plan (DRIP). For more information please click on the DRIP tab to the right of this page.

When do you pay dividends?

Please check the Financial Calendar section of the website for all dates relating to dividend payments.

Can I have my dividends paid directly into my bank or building society account?

Yes, if you would like to receive your dividends directly into your UK bank or building society account, you can do so by:

• Registering for a Shareview Portfolio at www.shareview.co.uk/info/register and then following the ‘Arrange direct dividend payments’ link.
• Visiting www.shareview.co.uk/info/directdividends where you can download a Bank Mandate Form and return it to our registrar, Equiniti Limited.

 If you have a non-UK bank account, please contact Equiniti by telephone on +44 121 415 7066. Alternatively, please visit www.shareview.co.uk/info/ops for further details.

The above steps should also be followed if you wish to change the bank or building society account details that you wish your dividends to be paid into.

What are the benefits of having my dividends paid directly to my bank or building society account?

The majority of Lloyds Banking Group plc shareholders have their dividends paid into their bank or building society account because:

• It's safer - it removes the risk of cheque fraud or cheques being lost in the mail;
• It’s quicker - payments are credited to your account on the payment date. There is no waiting for cheques to arrive or cheques to clear;
• It’s easier - there is no need to have to arrange to pay your cheque into your bank / building society; and
• It reduces environmental impact - less paper usage and associated distribution lowers our impact on the environment.

If you lose your cheque, there may be an administration fee to pay when the dividend payment(s) are reissued to you. Please visit www.shareview.co.uk for more information.

Can I receive shares instead of a cash dividend?

Yes, in conjunction with our registrar, Equiniti Limited, we offer a Dividend Reinvestment Plan (DRIP). 

If you would like to find out more information about the DRIP, please visit our Dividends page and then click on the DRIP tab.

Alternatively, you can call our shareholder helpline on 0371 384 2990 and they will mail the information to you.

Why are you changing how often you pay dividends?

Lloyds Banking Group has announced that it will move to the payment of quarterly dividends in 2020, with the first quarterly dividend in respect of Q1 2020 payable in June 2020. 

The Group has c.2.4million shareholders, the vast majority of whom are retail investors, and this approach will provide a more regular flow of dividend income to all shareholders whilst accelerating the receipt of payments.

In what months will you pay quarterly dividends?

The new approach will be to 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. The first three quarterly payments, payable in June, September and December will be 20 per cent of the previous year’s total ordinary dividend per share. The fourth quarter payment will be announced with the full year results, with the amount continuing to deliver a full year dividend payment that reflects the Group’s financial performance and our objective of a progressive and sustainable ordinary dividend. The final dividend will continue to be paid in May, following approval at the AGM.  

Will I receive a tax voucher when a dividend is paid?

A Dividend Confirmation is issued to shareholders showing relevant information. This will be sent with each payment for those shareholders receiving payment by cheque, and will be sent annually, usually with the AGM mailing, to those shareholders who have elected to have dividend payments made direct to their bank or building society account.

How are dividends taxed?

• Shareholders should be aware that it is their responsibility to understand any tax implications of receiving dividends, including any obligations to notify HMRC of the amount of dividends received, the availability of any allowances and how and when to pay any tax that is due.
• To understand how dividends are taxed, and for further information and contact details, please visit the HM Revenue & Customs website.

How do I request a replacement dividend payment cheque?

Please contact our registrar, Equiniti Limited.
 

Where can I find information on historic dividend payments?

You can find this information on our Dividends section of the website.

Note

Interim 2009, Final 2009, Interim 2010, Final 2010, Interim 2011 - The Group was prevented from paying dividends on its ordinary shares as a result of the European Commission state aid review.

Final 2008 - The Group was prevented from paying dividends on its ordinary shares whilst the HM Treasury preference shares issued as part of the HM Treasury recapitalisation scheme were in existence.

Note

Interim 2009, Final 2009, Interim 2010, Final 2010, Interim 2011 - The Group was prevented from paying dividends on its ordinary shares as a result of the European Commission state aid review.

Final 2008 - The Group was prevented from paying dividends on its ordinary shares whilst the HM Treasury preference shares issued as part of the HM Treasury recapitalisation scheme were in existence.

Dividend Reinvestment Plan

Lloyds Banking Group plc (the Company) offers shareholders the opportunity to purchase additional shares in the company through a dividend reinvestment plan (DRIP).

As communicated to shareholders in the 2019 results shareholder letter, we are trialling the offer of a contribution towards the commission paid by shareholders who participate in the Dividend Reinvestment Plan (DRIP). Further details together with Frequently Asked Questions are available in the booklet issued to shareholders which can be found here.

Shareholders who wish to obtain further information about the DRIP can access the terms and conditions below. Alternatively shareholder can contact contact EFSL using the contact details provided below.

What is the DRIP?
The DRIP is a low cost way to use your dividend payments to purchase additional shares in the Company, enabling you to increase your shareholding in a convenient and cost-effective manner.

The DRIP is operated by Equiniti Financial Services Limited (EFSL). Rather than receiving a dividend cheque or having a bank account credited with a cash dividend payment, ESFL will use the dividends payable to DRIP participants to purchase shares on their behalf in the market, under a special low-cost dealing arrangement.

The fees and charges are located in the DRIP Terms & Conditions.

Joining the DRIP
Any shareholder wishing to join the DRIP should contact EFSL for an application form, using the contact details provided below.

Leaving the DRIP
Any shareholder who is a participant in the DRIP and who wishes to withdraw from the plan should contact EFSL for a revocation form, using the contact details provided below.

Please note - if you hold your shares in the Lloyds Banking Group Shareholder Account (LBGSA) and wish to withdraw from the plan then you must provide bank details to EFSL for the purpose of dividend payments. Failure to provide bank details will result in your shares being withdrawn from the LBGSA and you will be sent a paper share certificate.

Important information regarding the DRIP

DRIP Invitation Booklet
The DRIP Invitation Booklet explains how the DRIP works and what it means for shareholders, including some frequently asked questions. It can be accessed here.

DRIP Terms & Conditions

March 2018 - notice of change to the DRIP terms and conditions

From 30 April 2018, the commission rate charged on the value of shares purchased under the DRIP terms and conditions changed. See below:

The DRIP Terms & Conditions can be accessed here. They are also available in hardcopy through EFSL using the contact details provided below:

Tel: 0371 384 2990
Textphone: 0371 384 2255
Overseas: +44 (0)121 415 7066

Each of these documents should be considered by shareholders before making any decision regarding the DRIP.  Participation in the DRIP is optional, and these documents do not constitute advice to join, continue to participate in, or withdrawal from, the DRIP. If you have any doubt about the action you should take, it is recommended that you consult your stockbroker, solicitor, accountant or other independent professional adviser authorised under the Financial Services and Markets Act 2000.