Lloyds Banking Group Plc : LYG-US: Dividend Analysis : August 11th, 2017 (record date) : By the numbers : September 12, 2017

Our analysis is based on comparing Lloyds Banking Group Plc with the following peers – Barclays PLC Sponsored ADR, Royal Bank of Scotland Group plc Sponsored ADR, Royal Bank of Canada, Bancolombia S.A. Sponsored ADR Pfd, Banco Bradesco SA Pfd and Banco Santander S.A. Sponsored ADR (BCS-US, RBS-US, RY-US, CIB-US, BBDC4-BR and SAN-US).

Lloyds Banking Group Plc’s dividend yield is 4.94 percent and its dividend payout is 101.34 percent. This compares to a peer median dividend yield of 3.47 percent and a payout level of 34.29 percent. This type of dividend performance might make it a good stock for dividend investors. However, the company’s average dividend quality score of 50 out of a possible score of 100, points to some weakness in the sustainability of its robust payout ratio, and makes its less attractive for dividend investors seeking current income.

Dividend Yield
Dividend Quality Score

Dividend Quality Overview

  • Dividend quality trend has not been consistent over the last five years. Dividends were paid during 2 of these years — of these 1 was medium quality and 1 was low quality.
  • The ending cash balance, with a dividend coverage of 26.28x, provides a substantial cushion in case of a significant reduction of cash flows in the future.
Dividend Quality Score Vs Dividend Yield

Quadrant label definitions. Hover to know more

High Score;High Yield, High Score;Low Yield, Low Score;Low Yield, Low Score;High Yield

Dividend Coverage

Over the last twelve months (prior to June 30, 2017), LYG-US paid a low quality dividend.

The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of -8.31x), investing cash flow (coverage of -0.23x), issuance cash flow (coverage of -7.31x) and twelve-month prior cash (coverage of 39.14x), for a total dividend coverage of 27.28x.

LYG-US‘s issuance cash flow includes outflows from net debt repayment (coverage of -5.01x).

Dividend Coverage by Cash Flow (TTM)

These coverage ratio factors imply that the firm had to dip into the beginning cash balance to pay the dividend, which suggests a low dividend quality.

Dividend History

Item 2012-12-31 2013-12-31 2014-12-31 2015-12-31 2016-12-31 Latest
Dividend Yield (%) 0 0 0 2.1 4.9 4.94
Dividend Payout (%) 0 0 0 195.97 96.27 104.82

A complete list of metrics and analysis is available on the company page.

Company Profile

Lloyds Banking Group Plc is a financial services company, which provides a wide range of banking and financial services. It operates through the following segments: Retail, Commercial Banking, Consumer Finance, Insurance, and Other. The Retail segment segment provides current accounts, savings, loans, and mortgages to personal and small business customers in the UK. The Commercial Banking segment supports UK businesses from small and medium-sized enterprises to large corporate and financial institutions. The Consumer Finance segment consists of motor finance solutions and credit cards to consumer and commercial customers. The Insurance segment offers customers with long-term savings; investment and protection products; and general insurance. The Other segment includes certain assets previously reported as outside of the Group’s risk appetite and the results of businesses disposed.The company was founded by George Truett Tate on October 21, 1985 and is headquartered in London, the United Kingdom.

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