Lloyds Banking Group is today announcing 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 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.
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 addition to the Group's progressive and sustainable ordinary dividend policy the Board will continue to give consideration to the distribution of surplus capital at the end of each year.
Proposed payment dates, record dates and ex dividend dates for the 2020 payments will be announced in due course and published on the Group website.
This move to quarterly dividends does not impact the existing payment approach so all shareholders will continue to receive dividends in the same way they currently do (Cheque, direct credit or DRIP). Additional Q&A on the changes, including how retail shareholders can move to direct credit payments, is available on the LBG website.