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Lloyds (LSE:LLOY) shares are always in high demand among dividend investors. At first glance, it’s not difficult to see why.
High street banks offer essential services like loans, mortgages, credit cards and current accounts. As a consequence, they tend to enjoy stable cash flows they can then use to pay consistent dividends.
On top of this, the financial regulator demands that banks hold significant capital reserves, providing dividends with added stability.
Finally, the dividend yield on Lloyds shares is 6% for 2024, beating the 3.5% FTSE 100 average by a large distance. The yield marches to 6.2% and 7.1% for 2025 and 2026 too.
However, I wouldn’t touch the Black Horse Bank with a bargepole right now. If I was seeking dividends, I’d much rather add support services provider Bunzl (LSE:BNZL) to my portfolio.
Dividend growth
First, let’s take a look at Bunzl’s…
