Imperial dividend
In FY2025, Imperial paid £1,558 million in dividends, against £2,692 million of free cash flow. That cash came after capital spending, leases and interest, but dividends and buybacks together exceeded free cash flow in the latest year.
How much does Imperial pay shareholders over time?
Imperial’s dividend history explains why the policy is not automatic. It cut the dividend by one-third in 2020 to accelerate debt reduction, then began buybacks in 2022. In October 2026, after completing its latest programme, Imperial announced a £1.5 billion buyback for the following year. Debt reduction created room for these distributions, but every pound returned competes with transformation, acquisitions and legal obligations.
| Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | |
|---|---|---|---|---|---|
| EPS, diluted | 249.30 | 299.00 | 250.80 | 164.70 | 299.10 |
| − Dividends paid, per share | 187.58 | 148.64 | 141.35 | 138.51 | 137.73 |
| − Share buybacks, per share | 148.69 | 116.72 | 108.38 | 0.00 | 0.00 |
What this means. The company's own free cash flow per share is higher because it leaves out lease payments, while our count includes that cash as spent.
Does Imperial cover its dividend with cash?
Cash from operations was £3,627 million in FY2025. After capital spending, leases and interest, free cash flow was £2,692 million. Imperial’s own free-cash-flow measure was £2,749 million because it uses different definitions for capital spending, interest and minority dividends.
Cash did not reduce debt because distributions exceeded company-defined free cash flow. Imperial paid £1,558 million in dividends and spent £1,235 million buying back shares. Strong cash generation can therefore coexist with borrowing that stays high or rises.
By 2025, dividends and buybacks together exceeded that year’s free cash flow. Borrowing helped bridge the gap, although much new debt replaced maturing debt rather than creating entirely new spending capacity. Net debt fell across the five-year period but rose in the latest year, and Imperial’s own debt measure differs from the measure used in the table.
| Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 2,692 | 2,412 | 2,295 | 2,522 | 1,483 |
| − Dividends paid | 1,558 | 1,299 | 1,312 | 1,320 | 1,305 |
| − Share buybacks | 1,235 | 1,020 | 1,006 | 0 | 0 |
| = Free cash flow not paid out | 1,113 | 85 | |||
| Paid out, % of free cash flow | 103.8% | 96.1% | 101.0% | 52.3% | 88.0% |
What this means. The company's own net debt is higher because it includes lease payments still owed and certain financial contracts, while our simpler calculation subtracts cash from borrowings only.
What could change Imperial's dividend?
Imperial’s plan works only if cigarettes keep funding investment until newer nicotine products generate their own profit and cash. Capital allocation means deciding how to divide cash among investment, debt, dividends and buybacks. Imperial’s stated order is to invest first, maintain an efficient balance sheet, pay a progressive dividend and return surplus capital.
What is Imperial's dividend yield against its share price?
| Today (Oct 15, 2026) | |
|---|---|
| Share price | 2,826.00 |
| Free cash flow yield (calculated) | 12.6% |
| Dividend yield (calculated) | 5.9% |