Buybacks Shift UK Dividend Stock Income Rankings

LONDON, July 30, 2026, 11:02 BST — Share buybacks are reshaping the order of UK dividend-paying stocks, affecting the league table of income returns.

MONY Group LON:MONY tops an initial buyback-adjusted ranking at 8.3%, with Lloyds Banking Group LON:LLOY following at 7.4%.
Standard Chartered LON:STAN announced a $1 billion share buyback. BP LON:BP continues its suspension of share repurchases.
The FTSE 100 gained 0.55% on a delayed feed, with London trading still active.

Among the four listed shares, MONY offers the highest cash return. The indicated dividend yield of 5.93% rises to 8.3% when factoring in the £25 million share buyback.

The ranking is altered. Stated dividends do not fully reflect the banks’ distributions, and BP falls behind when share buybacks are excluded.

Lloyds is at 7.4% using this metric. Standard Chartered nears 6.0%, compared to BP at 4.54%.

Late morning market update

Company	Indicative price	Day move	Market value	Indicated dividend yield
MONY Group	207.80p	down 2.44%	£1.07bn	5.93%
Lloyds	113.55p	up 2.07%	£65.98bn	3.21%
Standard Chartered	2,201p	up 2.09%	£48.21bn	2.06%
BP	541.30p	up 0.39%	£83.65bn	4.54%

The most recent displayed sell prices are shown just before 11:00 BST. MONY moved ex-dividend by 3.36p on Thursday.

MONY’s reported decrease should be revised. With the dividend taken out from Wednesday’s 213p closing price, the dividend-adjusted drop is roughly 0.9%.

The following calculation combines projected 2026 gross buybacks with indicated dividend yields. This early estimate does not account for potential future issuance, execution delays, or fluctuations in price.

Initial income screen adjusted for buybacks

Company	Dividend yield	2026 gross buybacks	Buyback as market-value percentage	Combined screen
MONY Group	5.93%	£25m	2.34%	8.27%
Lloyds	3.21%	£2.75bn	4.17%	7.38%
Standard Chartered	2.06%	$2.50bn, or about £1.87bn	3.89%	5.95%
BP	4.54%	No current programme	0.00%	4.54%

Standard Chartered carried out its buybacks at an approximate rate of $1.334 for each pound. The bank finished a $1.5 billion repurchase programme prior to unveiling a further $1 billion buyback this week.

MONY’s capital programme also backs the outcome, with management projecting over £90 million in shareholder returns for 2026, representing more than 8.4% of its present market capitalisation.

The operational outlook is more mixed. Like-for-like revenue in the first half increased by 6%, and adjusted EBITDA was up 3%, while operating cash flow declined by 17%.

Net debt stood at £31.8 million. Chief Executive Peter Duffy stated, “Our business only succeeds when we save customers money.”

Lloyds posted a first-half pretax profit of £4.3 billion, a 23% increase, exceeding the analyst consensus of £4.12 billion. The bank also boosted its interim dividend by 30% to 1.58p.

The additional £1 billion share buyback brings Lloyds’ planned repurchases for 2026 to a total of £2.75 billion. After initially falling 0.5%, Lloyds shares climbed 2.1% as of 10:56 BST.

Standard Chartered posted a 9% increase in first-half pretax profit, reaching $4.78 billion. Wealth income climbed 38%, while expenses rose by just 2%.

The company announced a $1 billion share buyback and a 20.4-cent interim dividend. Combined with the previous programme, total buybacks amount to nearly 3.9% of the present market value.

Chief Executive Bill Winters stated, “Clients continue to turn to us to facilitate trade, investment and wealth flows.” Reuters

Comparison of operations and payouts

Company	Latest earnings evidence	Dividend action	Buyback action	Main investor check
MONY Group	Revenue up 6% on a like-for-like basis; EBITDA rises 3%	Interim dividend increased 1% to 3.36p	£25m buyback in progress	Cash flow down 17%; net debt stands at £31.8m
Lloyds	Pretax profit rises 23%; ahead of consensus	Interim dividend up 30% to 1.58p	New £1bn programme; £2.75bn set for 2026	Cost-saving progress, possible UK bank levy
Standard Chartered	Pretax profit climbs 9%; wealth income jumps 38%	Interim dividend at 20.4 cents	New $1bn; plans for $2.5bn in 2026	China regulatory measures and Middle East credit risk
BP	Current annual yield 4.54%	Dividend policy maintained	Buybacks on hold	Focus on debt reduction and impact from oil prices

BP’s approach is more straightforward. While its dividend continues to be attractive, surplus funds are now being used to reduce debt instead of buying back shares. BP aims for net debt between $14 billion and $18 billion by the end of 2027.

Risks: Buyback yields are influenced by execution and prevailing market values. MONY faces lower cash conversion, potential UK banking levies, controls on Asian wealth, and oil price swings, any of which could reduce the ranking.

The conclusion is limited in scope. While dividend yield by itself undervalues Lloyds and Standard Chartered, MONY remains ahead in terms of current cash-return strength.

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Further analysis

Editorial insight

What is the “Standard” stock under review in this case?

For this analysis, “standard” refers specifically to Standard Chartered PLC. STAN is its primary ticker in London, and 2888 is used in Hong Kong. The term itself is unclear, so each statistic here solely concerns the bank. Standard Chartered

What is the current trading location for Standard Chartered stock?

STAN last traded at 2,199p, rising 1.95%. During the session, the price moved between 2,140p and 2,210p. Shares remained around 3.5% under the 2,278p high for the year. In the previous session, STAN gained 2.86%, while the FTSE 100 advanced 0.34%. AJ Bell

Did the most recent results surpass forecasts?

Yes, by a comfortable margin. Pretax profit in the first half increased 9% from a year ago to $4.784 billion. That was above the analyst consensus of $4.52 billion reported prior to the results. Operating income rose 6% compared with the previous year to $11.604 billion. Adjusted for the previous Solv India gain, income was up 8%. Earnings per share increased 17% to 151.6 cents. Return on tangible equity was 17.6%, and the cost ratio dropped to 54.6%.

What factors are driving the rise in earnings?

Wealth Solutions generated a 38% increase in income, totaling $2.107 billion for the half. The business saw second-quarter growth in Wealth Solutions quicken to 43%, amounting to $1.064 billion. Net new money from affluent clients hit an all-time high of $33 billion in the half. Global Banking posted a 19% year-on-year gain in income to $1.314 billion. Income for Global Markets slipped 2%, reflecting continued uneven growth.

How has management’s outlook for 2026 shifted?

Management anticipates income growth to be around the midpoint of its 5%-7% range, suggesting an approximate 6% increase, not including significant notable items. Adjusted net interest income is projected to rise by a low-single-digit percentage. Expenses are forecasted close to $13.3 billion on a constant currency basis. Full-year RoTE is still expected to exceed 12%, even after a 17.6% rate was reached in H1. This difference provides room for softer conditions in the second half and ongoing geopolitical uncertainty.

What is the total amount of capital being distributed to shareholders?

The bank unveiled a fresh $1 billion share buyback that is set to begin shortly. Executives anticipate a 38 basis point decrease in CET1 capital from the move. The interim dividend increased by 66% to 20.4 cents per share. CET1 remained at 14.2% before accounting for the buyback. Shares outstanding totaled 2.189 billion, a 6% drop compared with a year ago. Buybacks thus continue to play a key role in driving per-share earnings higher.

Has the stock remained undervalued following the recent rally?

STAN last traded at approximately 2,199p, reflecting a price-to-earnings ratio of 13.56. The dividend yield shown was 2.1%, alongside a market capitalisation of £48.15 billion. Fourteen analysts in a survey offered an average twelve-month price target of 2,262p. Of those, seven rated the stock as buy, six as hold, and one as sell. The latest target implies an upside of just around 3% from the recent trade. Analysts’ targets varied widely, from about 1,719p to 2,651p. On balance, consensus points to shares trading at fair value, rather than being a clear bargain. AJ Bell

What might undermine the optimistic outlook?

Credit impairments for the first half increased 33% from a year earlier to $446 million, with $234 million linked to overlays related to the Middle East conflict. Adjusted net interest margin edged down by one basis point to 2.04%. Income from Global Markets dropped by 2%, and pretax profit for Corporate and Investment Banking also decreased by 2%. Still, 75% of the corporate portfolio was investment-grade. No significant signs of stress were observed, but geopolitical risks continue to pose considerable uncertainty.

What is the likeliest price projection over the next twelve months?

The average analyst estimate is close to 2,262p, just above the current trading price. A reasonable base scenario covers a range between 2,250p and 2,350p. In a bullish scenario, the price could go as high as 2,500p-2,650p if strong wealth growth continues. In a bearish outcome, it could drop to 1,700p-1,900p following any credit or guidance surprises. These are scenario ranges and should not be read as exact forecasts. The next update comes with third-quarter results due on October 28, 2026. Investing.com

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Roman Perkowski is a senior markets reporter at TS2.tech, specializing in stocks, technology and macroeconomic trends. A graduate of the Cracow University of Economics, he previously worked in investment research and corporate finance. His coverage helps readers understand the key forces driving global financial markets and emerging industries. Follow Roman Perkowski on Google News.