Kingfisher dividend: cash cover and yield
MyStockButler's October 2026 analysis: Kingfisher’s base dividend holds at 12.4p before rising to 12.8p and 13.2p; the declared interim is 3.8p. Free cash flow was £540m before stock-based pay and £513m after it, while management targets dividend cover of 2.25–2.75 times.
How much does Kingfisher pay per share?
The base dividend holds at 12.4p before rising to 12.8p and 13.2p. That reflects five years of unchanged dividends and the declared 3.8p interim. The bear case cuts DPS to 11.2p, 10.0p and 9.0p if cash conversion deteriorates. The bull case reaches 12.8p, 13.6p and 14.5p, consistent with progressive growth if earnings recover. Management targets dividend cover of 2.25–2.75 times.
| Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 | |
|---|---|---|---|---|---|
| Real free cash flow per share | 28.89 | 23.94 | 23.69 | -5.29 | 12.10 |
| Free cash flow per share | 30.41 | 25.01 | 24.83 | -4.35 | 13.37 |
| − Dividends paid, per share | 12.27 | 12.21 | 12.34 | 12.29 | 12.00 |
What this means. The company's own free cash flow per share differs from our figure because it leaves out some unusual cash items and uses different rules for rent, interest, and tax.
How much would Kingfisher's dividend pay you?
£10,000 invested in Kingfisher at its 3.5% dividend yield (our report of October 30, 2026) pays £350.00 in the first year, before tax. If its dividend per share keeps changing 0.6% a year, as it did from Jan 2022 to Jan 2026, and the dividends are reinvested, year 10 pays £504.96, with £4,227.98 received in all.
Before tax. Past dividend growth is not a promise. Information only, not investment advice.
Is Kingfisher’s dividend covered by its cash?
Cash from operations was £1,433m in the year to January 2026. After capital spending, lease payments and interest, the accompanying calculation left £540m of free cash flow. After stock-based pay, it left £513m. That final deduction recognises the economic cost to shareholders even though the payment is non-cash.
Dividends put cash directly in shareholders’ hands. Buybacks reduce the number of shares, increasing each remaining investor’s proportionate ownership, but their value depends on the price paid and the cash those shares later earn. In March 2026, Kingfisher authorised another £300 million buyback programme; by September, it had completed £125 million.
| Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 | |
|---|---|---|---|---|---|
| Free cash flow | 540 | 467 | 477 | -87 | 283 |
| − Dividends paid | 218 | 228 | 237 | 246 | 254 |
| − Share buybacks | 256 | 225 | 160 | 337 | 157 |
| = Free cash flow not paid out | 66 | 14 | 80 | ||
| Paid out, % of real free cash flow | 92.4% | 101.3% | 87.3% | not meaningful | 160.5% |
What this means. Kingfisher's own net debt is higher because it includes lease liabilities and financing derivatives, while our figure excludes leases.
What could change Kingfisher’s dividend?
France must move from its 3.6% retail margin toward the 5%–7% ambition. Screwfix France must show profitable incremental growth, because its losses and lease commitments could reduce cash available for buybacks.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Normal operating profit | 720 (690 / 750) | 745 (610 / 825) | 770 (625 / 900) |
| Dividends per share | 0.12 (0.11 / 0.13) | 0.13 (0.10 / 0.14) | 0.13 (0.09 / 0.15) |
| Net debt | -375 (-421 / -372) | -453 (-552 / -508) | -593 (-751 / -761) |
What this means. Negative net debt means the company has more cash than it owes, so it has net cash rather than debt.
What is Kingfisher’s dividend yield at today’s price?
At the final date, the bear case gives 385.13p, while the bull case gives 958.60p. Today’s reference price is 349.30p. The probabilities are 30% bear, 55% base and 15% bull.