The UK’s decision to exit the EU could cause disruption for the economy. With the bank generating around 97% of its income from the UK, a decline in the rate of GDP growth following Brexit may lead to a troubled period for the company’s finances.
Lloyds Banking Group PLC (LON:LLOY) (LLOY.L) may not be viewed as a particularly appealing income stock at the moment by many investors. After all, the company faces an uncertain future which could see its financial performance come under pressure. However, at the same time, Lloyds also offers what I believe is a compelling outlook from an income perspective. The stock market seems to have priced in potential difficulties, since the stock has a dividend yield of 6% using last year’s expected dividend payments. Using 2018’s forecast dividend of 4.5p per share, the bank is trading on a dividend yield of 6.6% at the moment.
Source: Investomania
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