This calculator helps investors in Lloyds Banking Group plc (LSE: LLOY) estimate their potential dividend income. Input your share quantity, dividend yield (or DPS), and tax settings to forecast your earnings, tax liability, and reinvestment growth.
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Dividend Forecast
Account & Tax
DRIP Projection (Reinvestment)
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DRIP Projection
How the calculator works
This tool estimates the income from holding Lloyds Banking Group plc shares. By default, it takes the number of shares you own and multiplies it by a forecast dividend per share (DPS). If you prefer, you can input a target dividend yield percentage instead.
The calculator accounts for the UK tax-free Dividend Allowance. If you select "ISA / SIPP", tax is assumed to be zero. If you select "General Account", it calculates tax based on your selected Income Tax Band (Basic, Higher, or Additional) applied to the dividend amount exceeding your allowance.
Dividend dates explained
- Ex-dividend date: To receive the dividend, you must buy the shares before this date. If you buy on or after this date, the previous owner gets the payment.
- Record date: The company checks its register on this date to see who owns the shares.
- Payment date: The day the cash actually lands in your brokerage or bank account. Lloyds typically pays dividends semi-annually.
UK dividend tax
In the UK, you do not pay tax on the first chunk of dividend income you receive each tax year; this is the Dividend Allowance. For the 2024/25 tax year, this is £500.
Income above this allowance is taxed at rates lower than standard income tax, but these rates have increased recently:
- Basic rate: 8.75% (on income over allowance)
- Higher rate: 33.75%
- Additional rate: 39.35%
Note: This calculator applies your selected marginal rate to the total taxable dividend amount for estimation purposes. It does not account for other income sources which might affect your tax band.
FAQs
DPS is the total amount of dividend attributed to each individual share. If LLOY pays a total of 5.6p per share in a year and you own 1,000 shares, your gross income is £56.
Yield is the income return on your investment relative to the share price. Formula: (Annual Dividend Per Share / Current Share Price) × 100. A 5% yield means you get £5 back annually for every £100 invested.
No. Dividends are paid at the discretion of the board and depend on Lloyds' profits, regulatory capital requirements, and strategy. Past performance does not guarantee future payouts.
UK taxpayers have a tax-free allowance for dividend income. For 2024/25 it is £500. Any dividend income received above this amount is taxed according to your income tax band.
An ISA (Individual Savings Account) or SIPP is a tax wrapper. Dividends earned inside these are generally tax-free. A General Investment Account has no such tax protection.
DRIP stands for Dividend Reinvestment Plan. Instead of taking the cash, the company uses the dividend to buy more shares for you automatically.
Lloyds, like many UK banks, splits its annual dividend into two payments. The Interim is usually paid around September, and the Final around April/May.
Glossary
Dividend Per Share.
The current dividend yield relative to the price you originally paid, not the current market price.
A dividend paid during the financial year, rather than at the end.
A one-off payment separate from the regular dividends, often resulting from asset sales or exceptional profits.
The ticker symbol for Lloyds Banking Group plc on the London Stock Exchange.