The Lloyds (LSE: LLOY) share price has really got its act together. This morning (24 June), it opened at 109.5p, which is its highest level since September 2008. That’s almost 18 years go.
Most of you will recognise the significance of that date. It was when the banking and financial crisis was in full swing. Lloyds shares were already in freefall, and there was worse to come. They bottomed out at around 28p in February 2009. Then bumped along the bottom for another 12 or 13 years as the broken bank slowly sorted itself out.
What took this stock so long?
It wouldn’t even exist today if taxpayers haven’t bailed it out for £20.3bn. Ultimately, they got their money back, as the gradual sell-off of the government’s 43% stake generated £21.2bn. But the disaster cast a long shadow over the FTSE 100 banks. Lately, it has lifted. The Lloyds share price is up 147% over three years, and almost 45% in the last 12 months.
Investors shouldn’t just look at the share price performance with this stock, the income matters too. Lloyds has been shelling out some pretty generous dividends.
| Total dividend per share | % increase | |
| 2025 | 3.65p | 15.14% |
| 2024 | 3.17p | 14.86% |
| 2023 | 2.76p | 15.00% |
| 2022 | 2.40p | 20.00% |
| 2021 | 2.00p | 250.88% |
Before the financial crisis, Lloyds had a reputation as a dividend machine. The board seems keen to return to the glory days, hiking shareholder payouts by around 15% a year for the last three years.
Today, investors are nervous again. The excitement over the record-breaking SpaceX IPO on 12 June has gone into reverse. Suddenly, there’s talk of an artificial intelligence bubble, and a stock market crash.
Can this FTSE 100 bank keep climbing?
So far, Lloyds has shrugged this off. It’s learned its lesson from the banking stock blow-up and is a much more modest operation today. Its focused almost entirely on the UK and shuns riskier areas such as business banking. Given how this inevitably limits growth opportunities, the shares have done stunningly well.
Lloyds has capital strength, with a Common Equity Tier 1 (CET1) ratio of 13.4%, above management’s own target of around 13%. It doesn’t have an entirely clean bill of health, as it’s had to set aside almost £2bn of provisions for the historic UK motor finance mis-selling scandal. Yet it made a £6.7bn profit in 2025 and is funding a meaty share buyback programme of up to £1.75bn.
Should investors approach with caution at today’s high? The shares aren’t as cheap as they were, with a trailing price-to-earnings ratio of 15.5. However, that falls to 10.9% on a forward basis, suggesting profits will keep climbing. The trailing yield has fallen to 3.38% but is forecast to climb to 3.92% this year and 4.64% in 2027.
There are risks, as the UK economy is struggling and higher inflation and interest rates could squeeze customers. If we get a wider crash, few stocks will escape unscathed. But I think it’s well worth considering with a long-term view. Investors might think about drip-feeding money in, taking advantage of any dips.
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Harvey Jones owns shares in Lloyds Banking Group.
