Diploma dividend
Diploma's dividend rose from 43p to 62p between FY21 and FY25. FY2025 free cash flow conversion reached 105%, supporting dividends alongside other uses of cash.
How much does Diploma pay per share over the years shown?
The base dividend is £0.66 per share in 2027 and £0.70 in 2028. It reaches £0.73 in 2029. This follows the stated 5% policy and a record of annual increases from 43p to 62p between FY21 and FY25.
| Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | |
|---|---|---|---|---|---|
| − Dividends paid, per share | 0.60 | 0.57 | 0.54 | 0.45 | 0.42 |
| − Share buybacks, per share | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| = Kept, per share | 1.15 | 0.88 | 0.72 | 0.62 | 0.43 |
What this means. “Kept, per share” is not cash sitting in the bank; it is profit left after dividends and share repurchases, divided among the shares.
Is Diploma's dividend covered by its cash?
Free cash flow conversion measures how much adjusted earnings becomes free cash flow after operating cash flow and capital expenditure, but before acquisitions, disposals, borrowing transactions and dividends. Diploma’s model assumes 90% conversion. FY2025 reached 105%, while the six months to March 2026 reached 76%.
| Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | |
|---|---|---|---|---|---|
| Operating earnings (company's measure) | 236.0 | 195.4 | 164.0 | 133.9 | 106.1 |
| − Dividends paid | 80.7 | 76.8 | 70.5 | 56.2 | 52.9 |
| − Share buybacks | 0 | 0 | 0 | 0 | 0 |
| = Kept to grow and build capital | 155.3 | 118.6 | 93.5 | 77.7 | 53.2 |
| Paid out, % of adjusted earnings | 34.2% | 39.3% | 43.0% | 42.0% | 49.9% |
| Acquisitions | 58.5 | 280.8 | 270.8 | 180.1 | 458.0 |
What this means. The company’s “operating earnings” are its adjusted profit measure, which removes some acquisition costs and other items, so they are not simply its ordinary business profit.
What could change Diploma's dividend?
The first test is the FY26 outcome and the final dividend announcement scheduled for 17 November 2026. Delivery of upgraded growth and margin guidance would support the base or bull path.
During FY27–FY29, inventory, receivables and cash conversion will decide whether earnings become debt reduction and acquisition capacity. Continued working-capital absorption would move the forecast toward the bear case.
What is Diploma's dividend yield today?
Adjusted earnings rose from £106.1m in FY2021 to £236.0m in FY2025. Net income was £184.9m in FY2025. Cash conversion fell to 76% in H1 2026 after £58.9m of working-capital absorption. Forward P/E was 29.5x and price to book was 10.1x. Dividend yield was 0.8% and buyback yield was 0.0%.
| Today (Oct 18, 2026) | |
|---|---|
| Share price | 7,890.00 |
| Market value (every class) (calculated) | 1,059,764.3 |
| Dividend yield (calculated) | 0.8% |
What this means. The figures use pence, so the share price is 78.90 pounds and the market value is 10,597.64 million pounds.