Lloyds Banking GroupLSE:LLOY -2.94%54 5-Year Yield-on-Cost % is 3.21 as of Jul. 09, 2026, which is 24% below its 10-year median of 4.20. GuruFocus rates LSE:LLOY with a GF Score™ of 54/100 and a GF Value™ of £0.70 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 1,254 Banks companies, Lloyds Banking Group ranks worse than 63.4% on this metric.
Lloyds Banking Group's yield on cost for the quarter that ended in Mar. 2026 was 3.21.
The historical rank and industry rank for Lloyds Banking Group's 5-Year Yield-on-Cost % or its related term are showing as below:
LSE:LLOY'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 1.63 Med: 4.2 Max: 6.29
Current: 3.21
During the past 13 years, Lloyds Banking Group's highest Yield on Cost was 6.29. The lowest was 1.63. And the median was 4.20.
LSE:LLOY's 5-Year Yield-on-Cost % is ranked worse than 63.4% of 1254
companies
in the Banks industry
Industry Median: 3.94
vs LSE:LLOY: 3.21
Lloyds Banking Group (LSE:LLOY) 5-Year Yield-on-Cost % Explanation
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Lloyds Banking Group 5-Year Yield-on-Cost % Related Terms
Lloyds Banking Group 5-Year Yield-on-Cost % Competitor Comparison
For the Banks - Regional subindustry, Lloyds Banking Group's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Lloyds Banking Group 5-Year Yield-on-Cost % vs Banks Industry
For the Banks industry and Financial Services sector, Lloyds Banking Group's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Lloyds Banking Group's 5-Year Yield-on-Cost % falls into.
Lloyds Banking Group 5-Year Yield-on-Cost % Calculation
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Lloyds Banking Group (LSE:LLOY) has a 5-Year Yield-on-Cost % of 3.21 as of Jul. 09, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Lloyds Banking Group and its competitors. This is 24% below median its historical median of 4.20. Over the past decade, Lloyds Banking Group's 5-Year Yield-on-Cost % has ranged from 1.63 to 6.29. According to the industry distribution chart, Lloyds Banking Group ranks #795 out of 1254 companies in the Banks industry, placing it in the top 63.4%.
Is Lloyds Banking Group's 5-Year Yield-on-Cost % too high?
Lloyds Banking Group's current 5-Year Yield-on-Cost % of 3.21 is 24% below median its 10-year median of 4.20. Over the past 10 years, this metric has ranged from a low of 1.63 to a high of 6.29. The Banks industry median 5-Year Yield-on-Cost % is 3.94. Lloyds Banking Group's value of 3.21 is 18.5% below this industry median. Based on the distribution chart, Lloyds Banking Group ranks #795 out of 1254 companies in the Banks industry, which is below the industry midpoint. Overall, Lloyds Banking Group has a GF Score™ of 54/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lloyds Banking Group's 5-Year Yield-on-Cost % compare to competitors?
According to the Banks industry distribution chart, Lloyds Banking Group ranks #795 out of 1254 companies for 5-Year Yield-on-Cost %. This places Lloyds Banking Group in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 3.94. Lloyds Banking Group's value of 3.21 is 18.5% below this benchmark. Historically, Lloyds Banking Group's own 5-Year Yield-on-Cost % has ranged from 1.63 to 6.29 over the past decade. While the company's 10-year median is 4.20 vs. the industry median of 3.94, Lloyds Banking Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for a Banks company?
The median 5-Year Yield-on-Cost % among Banks companies is 3.94, based on 1,254 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lloyds Banking Group's current 5-Year Yield-on-Cost % of 3.21 is 18.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Lloyds Banking Group and its competitors. For the Banks industry, the median 5-Year Yield-on-Cost % is 3.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lloyds Banking Group's current 5-Year Yield-on-Cost % is 3.21, which is 24% below median its own 10-year median of 4.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lloyds Banking Group stock overvalued right now?
Based on GuruFocus' analysis, Lloyds Banking Group (LSE:LLOY) is currently considered Significantly Overvalued. The stock's GF Value™ is £0.70, compared to a current price of £1.11 — trading 57.9% above its estimated fair value. The current 5-Year Yield-on-Cost % is 3.21, which is 24% below median its 10-year median of 4.20 and 18.5% below the Banks industry median of 3.94. Lloyds Banking Group's overall GF Score™ is 54/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Lloyds Banking Group (LSE:LLOY), the current 5-Year Yield-on-Cost % is 3.21 as of Jul. 09, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lloyds Banking Group (LSE:LLOY) Overvalued in 2026?
Based on GuruFocus' analysis, Lloyds Banking Group stock appears to be overvalued.
The current stock price of £1.11 is trading 57.9% above its estimated GF Value™ of £0.70.
GuruFocus considers Lloyds Banking Group to be Significantly Overvalued.
Key valuation signals for LSE:LLOY:
5-Year Yield-on-Cost %: 3.21 (24% below median its 10-year median of 4.20)
GF Value™: £0.70 vs. price of £1.11 (57.9% above fair value)
Industry Position: 18.5% below the Banks median (#795 of 1254)
No single metric tells the full story. See the LSE:LLOY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lloyds is a retail and commercial bank headquartered in the United Kingdom. The bank operates via three business segments: retail, commercial banking, and insurance and wealth. In retail, Lloyds offers primarily mortgages (66% of loan portfolio), credit cards, and current accounts to its customers. Its commercial banking operation provides lending, transaction banking, working capital management, and debt capital market services to large companies and financial institutions in the UK. Insurance and wealth round out the product lineup with life and property insurance as well as pension solutions and high-net-worth asset management services.
54GF Score
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5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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