Lloyds to set out dividend plan ahead of planned retail sale

LONDON, July 21 (Reuters) - Lloyds is expected toset out its future dividend plans, including how and when itmight return surplus capital to shareholders next week, makingthe stock more attractive ahead of a planned sale to privateinvestors, industry sources said.

The state-backed lender has said it intends to handshareholders at least half its sustainable earnings in themedium term, bringing it into line with British rivals HSBC and Barclays.

The bank is expected to say how it plans to meet that targetalongside its first-half results on July 31 and detail plans toreturn any surplus capital to shareholders either throughone-off dividends or share buy-backs, the sources said. (Reporting by Matt Scuffham, editing by Sinead Cruise)