3i dividend: history, cash cover and yield
3i paid 77.83p per share in FY2026, up from 40.16p in FY2022. Coverage varied sharply by year: in FY2026, free cash flow was £926 million and real free cash flow was £914 million.
How much does 3i pay per share?
The 4.5x trailing P/E is a poor guide; the 3.5% dividend yield is more directly tied to cash paid. Revaluations can dominate reported revenue, operating margin and EPS. 3i’s real free cash flow was 16.6% of revenue in FY2026, while net debt was £576 million. Real free cash flow per share rose from 42.22p in FY2022 to 92.99p in FY2026. Dividends paid per share rose from 40.16p to 77.83p.
| Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | |
|---|---|---|---|---|---|
| Real free cash flow per share | 92.99 | 67.47 | 28.54 | 66.30 | 42.22 |
| − Dividends paid, per share | 77.83 | 64.58 | 55.95 | 50.24 | 40.16 |
| − Share buybacks, per share | 1.53 | 0.00 | 0.00 | 3.11 | 5.57 |
| = FCF not paid out, per share | 14.85 | 5.79 | 15.75 |
Does 3i's cash cover its dividend?
The conventional bridge also looks healthy. Cash from operations was £998 million. After capital spending, lease payments and interest, free cash flow was £926 million. After treating stock awards as an economic cost to shareholders, “real” free cash flow was £914 million. But operating cash flow included £68 million of investment purchases and £853 million of investment proceeds, dividends and transfers between investment subsidiaries. It is real cash, but not pure cash from running businesses.
| Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | |
|---|---|---|---|---|---|
| Free cash flow | 926 | 681 | 317 | 667 | 434 |
| − Dividends paid | 765 | 625 | 541 | 485 | 389 |
| − Share buybacks | 15 | 0 | 0 | 30 | 54 |
| = Free cash flow not paid out | 146 | 56 | 152 | ||
| Paid out, % of free cash flow | 84.2% | 91.8% | 170.7% | 77.2% | 102.1% |
| Paid out, % of real free cash flow | 85.3% | 95.7% | 196.0% | 80.5% | 108.3% |
What this means. The company's own net debt differs from our count because it uses a different definition of cash; our count uses the cash shown in its accounts and leaves out lease liabilities.
What could change 3i's dividend?
Across the five years to March 2026, dividends dominated shareholder payments, alongside smaller share buybacks. Coverage varied sharply by year, so one year’s payout cannot establish a permanent policy. 3i says dividends should be maintained or grown, subject to a conservative balance sheet; that condition matters because investment proceeds arrive unevenly.
Dividends rise from £0.90 to £1.02 per share in the base case. That is slower than recent growth, but consistent with five consecutive increases and management’s aim to maintain or grow the dividend. The bear case falls to £0.68 as weaker cash generation causes cuts. The bull case reaches £1.23 because strong Action cash generation permits faster increases, although Action’s reinvestment and lender needs constrain distributions.
What is 3i's dividend yield at today's price?
NAV estimates what each share represents after adding the value of investments and other assets and deducting liabilities. It resembles valuing a house, subtracting its mortgage and dividing the remaining equity among the owners. 3i reported NAV of 3,131p at June 2026; after its 48p dividend, the comparable figure was 3,083p. At 2,406.00p, the shares trade about 22% below it. That is not cash which shareholders can demand, because 3i continues to manage the portfolio.
| Today (Oct 15, 2026) | |
|---|---|
| Share price | 2,406.00 |
| Free cash flow yield (calculated) | 3.8% |
| Dividend yield (calculated) | 3.5% |
What this means. The next-year price-to-earnings figure uses an analyst's profit estimate, not a promise or forecast from the company.