Lloyds Banking Group plc
LYGFinancial Services · Stock · quarterly payer
Forward Yield
3.75%
Annual Dividend
$0.22
Payout Ratio
47%
5-Yr Growth
—
Ex-Date
Aug 10, 2026
Frequency
Quarterly
Summary
As of September 2026, Lloyds Banking Group plc (LYG) yields 3.75% ($0.22 per share annually), with a blended fair-value estimate of $12.09 — +108% upside, so it screens as undervalued. Dividend safety grade: C (60/100). 4 years of dividend growth.
Is LYG a good dividend stock?
Yes, with caveatsLloyds Banking Group plc (LYG) pays a quarterly dividend yielding 3.75% ($0.22/yr), with 4 years of growth and a dividend-safety grade of C. It's a solid income payer, but check the caveats below before buying.
Advantages
- Comfortable payout ratio (47%)
- 114% total price return over 5 years
Risks
- Cut its dividend in 2021
Key Data
- Dividend Yield
- 3.75%
- Payout Ratio
- 47%
- Annual Dividend
- $0.22
- 5-Yr Avg Growth
- —
- Ex-Dividend Date
- Aug 10, 2026
- Years of Growth
- 4
- Frequency
- quarterly
- Beta
- 0.91
- Market Cap
- $83.9B
- P/E Ratio
- 13.5
- 5-Yr Total Return
- 114%
- 52-Week Range
- $4.36 – $6.34
- Dividend Safety
- C · 60/100
- Ever Cut?
- Yes (2021)
Frequently Asked Questions
LYG Price — Last 12 Months
Daily close
Price Return
1 Year
+23%
3 Years
+204%
5 Years
+114%
52-Week Range
$4.36 – $6.34
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is LYG worth?
Undervaluedlow confidenceOur blended fair-value estimate for Lloyds Banking Group plc is $12.09 per share, versus a market price of $5.81. That implies 108% of upside — a margin of safety of about 52%.
Fair Value
$12.09
Current Price
$5.81
Upside
+108%
Margin of Safety
52%
How we get there
Discounted cash flow
Discounts projected free cash flow back to today.
Dividend discount
Discounts the future dividend stream back to today.
Earnings multiple (Graham)
Graham's earnings-multiple formula, anchored to bond yields.
At today's price, the market is pricing in about -10.0% annual free-cash-flow growth. We model 15.6% — below our estimate, leaving room for upside if the business executes.
Assumptions: 8.8% discount rate (CAPM), 15.6% stage-1 growth, 2.5% terminal growth, $0.43 EPS, $0.22 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
LYG Dividend Safety Score
Borderline
SmarterDividends' proprietary score, backtested against which dividends were actually cut over 15+ years (0.78 AUC). It blends a validated cut-risk model (growth streak, cut history) with current payout, cash-flow and debt. Higher is safer · not investment advice.
Dividend Growth
Total dividends per share by year
Dividend History
| Ex-Date | Pay Date | Amount | Type |
|---|---|---|---|
| Aug 10, 2026 | — | $0.0840 | regular |
| Apr 10, 2026 | — | $0.1340 | regular |
| Aug 4, 2025 | — | $0.0660 | regular |
| Apr 11, 2025 | — | $0.1040 | regular |
| Aug 5, 2024 | — | $0.0550 | regular |
| Apr 11, 2024 | — | $0.0930 | regular |
| Aug 4, 2023 | — | $0.0480 | regular |
| Apr 13, 2023 | — | $0.0780 | regular |
| Aug 5, 2022 | — | $0.0390 | regular |
| Apr 7, 2022 | — | $0.0700 | regular |
| Aug 6, 2021 | — | $0.0370 | regular |
| Apr 15, 2021 | — | $0.0320 | regular |
| Aug 9, 2019 | — | $0.0550 | regular |
| Apr 4, 2019 | — | $0.1120 | regular |
Income Calculator
At $0.22 / yr per share
