Bunzl dividend: pay, cash cover and yield
MyStockButler's October 2026 analysis: Bunzl's base dividends are 76p, 78p and 80p per share, with 2.4 times cover. In 2025, Bunzl generated £578.5 million of free cash flow and paid £242.2 million in dividends.
How much does Bunzl pay per share?
Base dividends are 76p, 78p and 80p per share. This is modest growth after the 3.0% interim increase, consistent with the progressive policy and 2.4 times cover. The bear case cuts dividends to 72p, 68p and 65p as earnings and cash weaken. The bull case reaches 78p, 83p and 88p because sustained recovery supports faster increases.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Earnings | 600 (525 / 630) | 612 (498 / 681) | 625 (486 / 736) |
| Shares (millions) | 307 (306 / 307) | 304 (307 / 301) | 301 (307 / 295) |
| Dividends per share | 0.76 (0.72 / 0.78) | 0.78 (0.68 / 0.83) | 0.80 (0.65 / 0.88) |
| Price to earnings | 16.00 (14.00 / 18.00) | 16.00 (13.00 / 20.00) | 16.00 (12.00 / 22.00) |
How much would Bunzl's dividend pay you?
£10,000 invested in Bunzl at its 2.7% dividend yield (our report of October 21, 2026) pays £270.00 in the first year, before tax. If its dividend per share keeps changing 8.5% a year, as it did from 2021 to 2025, and the dividends are reinvested, year 10 pays £785.34, with £4,792.83 received in all.
Before tax. Past dividend growth is not a promise. Information only, not investment advice.
Is Bunzl's dividend covered by its cash?
Bunzl shifted from retaining most cash for acquisitions to returning almost all of it to shareholders. Free cash flow is the cash left after operating costs and capital spending, before choices such as dividends, acquisitions or debt repayment. In 2025, Bunzl reported £578.5 million after £68.8 million of net capital expenditure.
Dividends and buybacks then claimed much of that pot. Dividends were £242.2 million and buybacks were £204.8 million in 2025. A buyback cancels shares, so future profits are divided among fewer shares; it creates value only when the company pays a sensible price and remains financially strong.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 481.5 | 513.2 | 550.1 | 667.9 | 498.0 |
| − Dividends paid | 242.2 | 228.6 | 209.7 | 190.5 | 180.4 |
| − Share buybacks | 204.8 | 247.9 | 0.0 | 0.0 | 0.0 |
| = Free cash flow not paid out | 34.5 | 36.7 | 340.4 | 477.4 | 317.6 |
| Paid to shareholders | 447.0 | 476.5 | 209.7 | 190.5 | 180.4 |
| Paid out, % of free cash flow | 92.8% | 92.8% | 38.1% | 28.5% | 36.2% |
What this means. The company's own net debt is higher because it includes debt-related contracts that our simpler calculation does not count.
What could change Bunzl's dividend?
The bear signal would be renewed North American service or customer losses during 2027–2028, followed by weaker margins and free cash flow as older inventory runs off. Reduced cash generation would limit repurchases.
What is Bunzl's dividend yield against its share price?
The probability-weighted share price is 3061.39p in October 2027, giving a 15% return from 2730p after including dividends. It reaches 3207.73p in October 2028, a 23% return, and 3396.87p in October 2029, a 33% return. By the last date, the bear case is 1898.44p and the bull case is 5482.49p, against today’s 2730p. The forecast assigns 25% to bear, 55% to base and 20% to bull.
| Today (Oct 21, 2026) | |
|---|---|
| Share price | 2,730.00 |
| Free cash flow yield (calculated) | 5.6% |
| Real free cash flow yield (calculated) | 5.5% |
| Dividend yield (calculated) | 2.7% |
What this means. The next 12 months price-to-earnings number uses analysts’ expected profit, not profit the company has already earned.