The Lloyds Banking Group, the largest domestic lender in the United Kingdom, has announced that it will begin paying dividends to its clients every quarter.
The lender revealed this on Thursday, May 16. Lloyds noted in its statement that it expects to make the first such payments beginning with the first quarter of next year, that is, as from 2020.
According to the bank, the new approach to the payment of dividend should see the firm eventually distribute income to a client base of more than 2.4 million shareholders. The lender hopes the changes will make the process a little more regular as well as efficient.
In this new approach, Lloyd’s aims to adopt a procedure that will see its shareholders earn dividends paid in three bits for the first three quarters in a year. The payments will be equal and offered in the form of interim ordinary dividends.
These three will then be followed by one, presumably larger dividend paid at the end of the fourth quarter. The bank did, however, say in its statement that the size of the final dividend will depend on the performances.
Lloyds Banking shareholders currently enjoy dividend payouts that are handed out twice a year.
The lender is a big dividend payer; in fact, it ranks among the largest payers in Britain. The firm reportedly distributed close to 4 billion pounds in dividends to investors last year.
The firm’s 2018 paid outs saw investors receive ordinary dividends amounting to 3.21 pence per share. That share represented an increase of 5% on what the lender paid out in 2017.
More good news for the shareholders could be on the way. This is after the company announced it has plans to return up to 1.75 billion pounds to investors in a share buy-back deal to be rolled out later this year.
Notably, Lloyds has said that the changes it is making with regard to the dividend policy are not going to impact the existing buyback program. Similarly, these changes will not affect any future decisions on buyback shares.