Halma dividend: history, cover and yield
Halma’s dividend rose 7% annually from FY22 to FY26, and FY26 cover was 4.73 times. FY26 adjusted operating cash flow was £550.2m, while acquisitions used £469.1m.
How much does Halma pay per share?
The base dividend path rises from £0.26 per share in October 2027 to £0.28 in October 2028 and £0.30 in October 2029. This extends the 7% annual increase from FY22 to FY26 and is supported by FY26 cover of 4.73 times. The bear case pauses at £0.25 before growing at 2% annually; the bull case grows at 9%, reaching £0.32, but requires stronger earnings and continued cover.
| Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | |
|---|---|---|---|---|---|
| Adjusted earnings per share | 1.14 | 0.94 | 0.82 | 0.76 | 0.65 |
| − Dividends paid, per share | 0.24 | 0.22 | 0.21 | 0.19 | 0.18 |
| − Share buybacks, per share | 0.09 | 0.02 | 0.06 | 0.06 | 0.05 |
| = Kept, per share | 0.81 | 0.70 | 0.56 | 0.51 | 0.42 |
What this means. The kept amount subtracts share buybacks as well as dividends, so it is what remains after both payments, not just profit left after dividends.
Does Halma cover its dividend with cash?
Enterprise value to EBITDA compares the value of the whole business, including debt, with operating earnings before interest, tax, depreciation and amortisation. It can clarify comparisons between companies with different borrowing, but it does not subtract the cash needed for acquisitions. Halma generated £550.2m of adjusted operating cash flow in FY26, while buying businesses used £469.1m and net debt reached £769.1m. If acquisitions are a regular growth engine, they are economically a form of reinvestment.
| Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | |
|---|---|---|---|---|---|
| Operating earnings (company's measure) | 430.7 | 355.8 | 311.0 | 288.6 | 248.0 |
| − Dividends paid | 89.7 | 83.8 | 78.2 | 73.3 | 68.7 |
| − Share buybacks | 33.5 | 7.9 | 21.1 | 22.3 | 19.3 |
| = Kept to grow and build capital | 307.5 | 264.1 | 211.7 | 193.0 | 160.0 |
| Paid out, % of adjusted profit after tax | 28.6% | 25.8% | 31.9% | 33.1% | 35.5% |
What could change Halma’s dividend?
The view would move toward the bear case if Avo’s large customer reduces orders, photonics growth falls or acquisition integration lowers ROTIC and cash conversion. Net debt rising without corresponding earnings would reinforce that shift.
What is Halma’s dividend yield today?
At 3,428p, the shares trade at 25.6x next-twelve-month P/E. The 0.7% dividend yield leaves room for disappointment if earnings growth slows. Operating earnings growth accelerated in the latest year; net income is the check on whether that improvement reaches shareholders. Book value per share and operating earnings per share have risen. Earnings retained per share, dividends and buybacks show the funding available for growth. The key test is continued value creation per share.
| Today (Oct 17, 2026) | |
|---|---|
| Share price | 3,428 |
| Market value (every class) (calculated) | 1,301,424.2 |
| P/E on adjusted earnings, last 12 months (calculated) | 30.1x |
| P/E, next 12 months (calculated) | 25.6x |
| Dividend yield (calculated) | 0.7% |
What this means. The amounts are in pence sterling, so 3,428 means 34 pounds and 28 pence, not 3,428 pounds.