Lloyds Bank of the UK has decided to share profits with shareholders on a more regular basis by joining the list of just 11 UK companies that pay quarterly dividends. Currently, Lloyds Bank pays dividends on a half-yearly basis.
The other 11 FTSE 100 firms paying dividends in 2018 included HSBC, BP, Land Securities, British Land, HSBC, GlaxoSmithKline, BAT, Unilever, and Imperial Brands.
The new quarterly dividend payouts will ensure a more regular flow of dividend income to its roughly 2.4 million shareholders. Lloyds Bank said that the move will also accelerate the receipt of payments.
The leading UK bank will pay three equal interim ordinary dividends for the first three quarters of the year. In the final quarter, the bank will pay a larger dividend subject to performance.
Lloyds is one of the UK’s biggest dividend payers and last year paid dividends worth 4 billion pounds.
Lloyds Bank paid dividends of 3.21 pence per share in 2018 which is an increase of 5 percent on the payout for 2017. The bank has announced plans to return 1.75 billion pounds to shareholders through a share buyback programme this year. Lloyds bank said that the share buyback programme or any future programme to buy back shares will not affect the quarterly dividends payouts.
In February Lloyds bank CEO Antonio Horta-Osorio reduced his pension payments down to 33 percent after shareholders and public figures raised concerns over it.