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Highlights

  • Wall Street Zen, Goldman Sachs, and RBC upgraded Lloyds Banking Group to Buy.
  • Consensus rating now stands at “Buy” with one analyst assigning a Strong Buy.
  • Dividend of USD 0.0655 per share announced, ex-dividend date August 4th.

Lloyds Banking Group plc (NYSE: LYG) received a series of rating upgrades in recent weeks, with analysts shifting their outlook on the British lender. Wall Street Zen upgraded the stock from Hold to Buy in a research note published on Sunday, citing improving conditions and a more constructive near-term outlook. This follows several other upgrades across major financial institutions throughout July and August.

JPMorgan Chase & Co. moved the stock from Underweight to Neutral on August 1st, while The Goldman Sachs Group shifted from Neutral to Buy on August 5th. Keefe, Bruyette & Woods also upgraded Lloyds Banking Group from Hold to Moderate Buy on July 17th. Royal Bank of Canada raised its rating from Sector Perform to Outperform on August 4th, and Morgan Stanley reiterated its Overweight rating the same day.

According to data compiled by MarketBeat.com, Lloyds now carries a consensus “Buy” rating, supported by one Strong Buy recommendation, four Buy ratings, and one Hold rating. The series of upgrades reflects a more favorable analyst view of the bank’s capital position, earnings profile, and potential for shareholder returns despite challenges in the broader UK banking sector.

Separately, the company announced a semi-annual dividend of USD 0.0655 per share, payable on September 19th to shareholders of record as of August 4th. This payout equates to a dividend yield of roughly 3.7% based on recent trading prices. Lloyds Banking Group’s payout ratio is reported at 32.5%, indicating the bank is distributing less than one-third of its earnings back to investors.

Lloyds Banking Group provides retail, commercial, and insurance-related financial services across the UK and select international markets. Its Retail division is a major contributor, offering current accounts, savings, mortgages, loans, credit cards, and motor finance solutions.