Babcock International (BAB.L) dividend yield, history and 2029 forecast
What is the Babcock International (BAB.L) dividend yield?
Babcock International (BAB.L) dividend
0.7 %dividend yield at the 1,068.00p close of November 10, 2026
6.79pa share paid in 2026, our report
- Paid in 2026: 6.79p a share, up from 0.00p in 2022
- Our base-case forecast: 0.08p by November 2027, 0.10p by November 2029
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Executive summary + 8 chapters · 19,890 words · 173 sources
Is Babcock International a good dividend stock? Does its cash cover the dividend?
Our report makes no buy or sell call. It checks the dividend against free cash flow, the cash the business has left after paying for buildings and equipment.
Cash from operations after tax and net interest was £402.4 million. Deducting capital spending and lease principal produced £208 million of free cash flow. Deducting stock pay as an economic cost produced £190 million of “real free cash flow”.
- Mar 202616.7 %
- Mar 202516.9 %
Dividends as a share of free cash flow (our arithmetic on the report's figures). Past the dashed line, the dividend cost more than the cash.
How much would Babcock International's dividend pay you?
£10,000 invested in Babcock International at its 0.7% dividend yield (our report of November 10, 2026) pays £70.00 in the first year, before tax. If its dividend stays flat and the dividends are reinvested, year 10 pays £74.54, with £722.47 received in all.
Before tax. Past dividend growth is not a promise. Information only, not investment advice.
Babcock International dividend forecast: how much will it pay by 2029?
A Gateway agreement on workable terms, profitable Canadian and international submarine work, and sustained buybacks would move the forecast toward the bull case. A delayed or less attractive renewal would do the opposite.
What is Babcock International's dividend yield at the report's price?
A high price-to-book ratio reflects the value of skills, relationships and specialist facilities that accounts may not fully record. The dividend yield is modest beside a UK ten-year gilt yield of 5.140% on 9 November 2026, so the investment case rests mainly on future earnings and cash.
How much does Babcock International pay in dividends?
Shareholder payments also returned gradually. Babcock resumed its dividend in FY2024, and dividends paid rose from £8.5 million in FY2024 to £34.7 million in FY2026. It also began using buybacks, which use company cash to purchase the company’s own shares. The first programme crossed the FY2026 year-end, so only part of it appears in that year’s cash flow.
Dividends rise more slowly than in the recent recovery. The base case moves from £0.083 per share to £0.091 and then £0.100, roughly 10% annual growth from the FY26 7.5p dividend. The bear case holds at £0.075 first, then cuts to £0.050 and £0.040 as cash costs rise. The bull case reaches £0.086, then £0.099 and £0.114, supported by stronger delivery and cash conversion.
Results · £ millions; per share in pence · Mar 2026
- Net income211.2
- EPS, diluted41.30
- Dividend per share7.50
Questions about the Babcock International (BAB.L) dividend
Does Babcock International pay a dividend?
Yes. It paid 6.79p a share in 2026.
What is the dividend on 100p of Babcock International shares?
About 0.70p a year at the 0.7 % dividend yield: 100p buys 0.1 shares at the November 10, 2026 close.
Is Babcock International's dividend covered by its cash?
Yes. Dividends took 16.7 % of free cash flow in Mar 2026 and 16.9 % in Mar 2025 (our arithmetic on the report's figures).
Where could Babcock International stock be by 2029?
Our report's forecast is 1,613.66p a share by November 2029, from the 1,068.00p close of November 10, 2026. Babcock International stock forecast →
More on Babcock International (BAB.L)
More Babcock International pages
Babcock International's own filings
This page shows the dividend. The report shows whether the cash pays for it.
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How it is made: AI reads Babcock International's filings, writes the report, checks the numbers against them and cites each source, 173 in this one. How we work · Corrections
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Information only, not investment advice. A dividend can be cut; the forecast gives three cases with their chances. Prices are those of the date shown.