Haleon dividend: cash cover and yield
Haleon’s latest interim dividend was 2.4p, and its 2025 full-year dividend was 7.1p. Haleon’s stricter free-cash-flow measure was £1,804m in 2025, after capital spending, lease payments and interest.
How much does Haleon pay per share?
The dividend path follows Haleon’s policy and its payout cushion. The latest interim dividend was 2.4p, while the 2025 full-year dividend was 7.1p. Base DPS rises from £0.077 to £0.089. Bear DPS stays at £0.073 because debt, investment and weak demand absorb earnings growth. Bull DPS rises from £0.079 to £0.096, supported by stronger cash conversion. The policy is to grow the ordinary dividend at least in line with adjusted earnings, subject to approval and market conditions.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| EPS, diluted | 18.50 | 15.70 | 11.30 | 11.50 | |
| Real free cash flow per share | 19.03 | 15.92 | 13.27 | 16.37 | 10.88 |
| Free cash flow per share | 19.99 | 17.04 | 14.09 | 16.53 | 10.88 |
| − Dividends paid, per share | 6.78 | 6.21 | 4.19 | 0.00 | 0.00 |
| − Share buybacks, per share | 7.25 | 6.80 | 0.41 | 0.00 | 0.00 |
| = FCF not paid out, per share | 5.84 | 3.16 | 8.86 | 16.01 | 10.50 |
What this means. The company's own free cash flow per share is higher because it includes money from selling assets and interest received, and does not subtract lease repayments, while our count does.
Is Haleon’s dividend covered by its cash?
Investment and financing then take their share. Capital spending was £413m. After capital spending, lease payments and interest, a stricter free-cash-flow measure was £1,804m. Deducting £86m of share-based pay gives £1,718m, an economic allowance for the ownership granted to employees even though it is not a current cash payment.
Free cash flow is the cash left after running the business and making necessary investments. It is not automatically a dividend: cash may fund debt, restructuring, factories, innovation or advertising. Haleon’s definition also includes some intangible-asset sale proceeds, including the ChapStick disposal, which makes recurring cash generation especially important.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 1,804 | 1,563 | 1,305 | 1,527 | 1,005 |
| − Dividends paid | 612 | 570 | 388 | 0 | 0 |
| − Share buybacks | 654 | 624 | 38 | 0 | 0 |
| = Free cash flow not paid out | 527 | 290 | 821 | 1,479 | 970 |
| Paid to shareholders | 1,266 | 1,194 | 426 | 0 | 0 |
| Paid out, % of free cash flow | 70.2% | 76.4% | 32.6% | 0.0% | 0.0% |
What this means. The company reports more net debt because its own figure includes lease liabilities that this table leaves out, and in 2021 the two figures also treat parent loans differently.
What could change Haleon’s dividend?
The bear case would gain weight during 2027–2029 if repeated weak respiratory seasons, trading down or share losses keep growth below plan. It would also gain weight in 2027–2028 if savings underdeliver, change costs rise or refinancing weakens cash conversion.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Earnings | 2,070 (1,808 / 2,155) | 2,187 (1,816 / 2,362) | 2,312 (1,823 / 2,574) |
| Shares (millions) | 8,753 (8,819 / 8,690) | 8,712 (8,841 / 8,593) | 8,672 (8,863 / 8,504) |
| Dividends per share | 0.08 (0.07 / 0.08) | 0.08 (0.07 / 0.09) | 0.09 (0.07 / 0.10) |
| Price to earnings | 16.00 (14.50 / 18.00) | 16.00 (13.50 / 19.00) | 16.50 (12.50 / 20.00) |
What is Haleon’s dividend yield today against its price?
At its share price, Haleon is being valued as a dependable consumer-health business that can still grow profits faster than sales. Haleon, which owns brands such as Sensodyne, Panadol and Centrum, makes money from everyday products whose strength must survive changing prices, debt and consumer demand.