Lloyds Banking Group Reports Plan to Resume Dividends (LYG)
London based financial services company, Lloyds Banking Group PLC (LYG), announced that it would likely resume its dividend payments in the near future.
Lloyd’s CEO António Horta-Osório reported that the company now plans to distribute up to 70% of its earnings in the form of dividends within the next three years.
The company has not paid a dividend since 2008 when the UK government bailed out the bank and ordered it to terminate dividend payments. Lloyds has reported recently that it plans to discuss a possible dividend payout with regulators in the next five months.
If the bank is given approval to resume dividends by regulators, it is expected that the payment will be very small. However, Horta-Osório noted that he believes that the company will be able to raise dividends above the levels of its UK peers.
Lloyds Banking shares were up 18 cents, or 3.99% during premarket trading Monday. The stock is up 41% YTD.
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