Compass dividend: history, cash cover and yield
Compass paid 65.90 cents per share, against $2,209 million of free cash flow and $2,127 million of real free cash flow. The memo says recurring cash must be judged after necessary contract investment.
How much does Compass pay in dividends?
The increases are supported by a five-year record of rising DPS, from $0.191 to $0.659. The bear dip reflects weaker EPS and cash demands from acquisitions and debt, while the bull requires stronger earnings and cash conversion. Recent underlying free-cash-flow conversion of 87.8% supports the base case but does not remove the funding risk.
Underlying operating cash conversion was 87.1% in 2025, and underlying free-cash-flow conversion was 87.8%. Both support a healthy reading, but neither shows how much investment maintains existing contracts rather than funds expansion. The dividend rose to 65.90 cents, so recurring cash must be judged after necessary contract investment.
| Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | |
|---|---|---|---|---|---|
| Revenue | 46,070 | 42,002 | 37,907 | 32,617 | 24,533.96 |
| Revenue growth (calculated) | 9.7% | 10.8% | 16.2% | 32.9% | -3.9% |
| Dividend per share | 65.90 | 59.80 | 52.60 | 40.30 | 19.10 |
Is Compass's dividend covered by its cash?
The latest cash pattern shows the trade-off. Compass paid dividends and bought back shares while also acquiring businesses. Acquisitions absorbed more cash than disposals returned, so the company issued debt and cash fell. Its own net-debt measure differs from a broader measure that includes lease liabilities and other adjustments; neither represents net cash.
Cash from operations rose from $1,604.27 million in 2021 to $3,366 million in 2025. Free cash flow reached $2,209 million, while “real free cash flow” after stock-based pay reached $2,127 million. Working capital released $186 million in 2024 but absorbed $40 million in 2025, so the later cash performance did not rely on the earlier release.
| Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 2,209 | 2,007 | 1,613 | 1,260 | 869.95 |
| − Dividends paid | 1,047 | 963 | 796 | 539 | 0 |
| − Share buybacks | 115 | 577 | 1,167 | 517 | 4.11 |
| = Free cash flow not paid out | 1,039 | 457 | 200 | 865.84 | |
| − Acquisitions | 1,251 | 784 | 389 | 336 | 215.09 |
| Paid out, % of free cash flow | 52.6% | 76.7% | 121.7% | 83.8% | 0.5% |
What could change Compass's dividend?
Compass completed its $500m buyback programme in December 2024 and then prioritised investment. Its dividend policy remains approximately 50% of underlying earnings, meaning profit adjusted to exclude specified items such as acquisition-related charges. Those adjustments do not remove the cash costs themselves, so acquisition returns remain the decisive test.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Earnings | 2,277 (2,175 / 2,345) | 2,464 (2,243 / 2,633) | 2,667 (2,311 / 2,956) |
| Shares (millions) | 1,704 (1,704 / 1,702) | 1,707 (1,707 / 1,705) | 1,711 (1,711 / 1,707) |
| Dividends per share | 0.67 (0.67 / 0.69) | 0.73 (0.66 / 0.78) | 0.79 (0.68 / 0.87) |
| Price to earnings | 23.88 (21.88 / 26.09) | 22.76 (19.70 / 27.10) | 22.29 (17.65 / 27.01) |