Dividend Timetable

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The interim dividend is declared at the time of the interim (half year) figures together with a recommendation of the final dividend. The dividend should be declared no later than four business days before the Ex-dividend date. This date always falls on a Wednesday and the record date (books closed date) is two business days later. The payment date is twenty to thirty business days after the record date depending on the number of shareholders in the company.

Note this timetable is a LSE recommendation but is not mandatory.

Ex-dividend is the date the shares lose the dividend and is the critical date to determine dividend entitlement as opposed to the record, or books closed date which is the date which determines who is physically paid the dividend.

Therefore, if you sell shares before the ex-div date but are still the registered shareholder as at the record date you will receive the dividend payment but will not be entitled to it. In this instance you will undoubtedly receive a valid claim for the amount of the dividend.

Example:

Lloyds TSB final dividend for the year ended 31st December 2005

24/2/06 Results announced and dividend declared. 08/3/06 Ex dividend 10/3/06 Record date 03/5/06 Payment date

Of course the dividend must be approved at the AGM