Sainsbury’s dividend
MyStockButler's October 2026 analysis: In the year to February 2026, Sainsbury’s paid 24.39p per share in cash dividends, including a £250 million special dividend; without it, the payment was 13.62p. Retail free cash flow was £574 million against £566 million of dividends paid, but the £250 million special payment was from the bank exit and does not prove the continuing supermarkets generated that amount every year.
How much does Sainsbury’s pay per share?
Dividends paid, per share — In the year to February 2026, a £250 million special dividend lifted cash dividends per share to 24.39p; without it, 13.62p.
| Feb 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | |
|---|---|---|---|---|---|
| Dividend per share | 13.70 | 13.60 | 13.10 | 13.10 | 13.10 |
What this means. The heading says these amounts are pence per share, but a note says they are pounds, so the units are unclear.
Does Sainsbury’s cash cover its dividend?
Retail free cash flow was £574 million in FY2026, below the £645 million FY2023 peak. Cash capital expenditure was £843 million and lease-principal repayments were £504 million. Shops, refrigeration, technology and distribution facilities require continuing investment, even though depreciation itself is non-cash.
Shareholder payments also need separating. FY2026 dividends paid were £566 million, including a £250 million bank-exit special dividend. Ordinary dividends accounted for £316 million. The special payment distributes cash from the discontinued banking operation; it does not prove that the continuing supermarkets generated that amount every year.
| Feb 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | |
|---|---|---|---|---|---|
| − Paid to minority owners | 0 | 0 | 0 | 0 | 0 |
| − Dividends paid | 566 | 308 | 306 | 319 | 238 |
| − Share buybacks | 251 | 200 | 0 | 0 | 0 |
| Paid to shareholders | 817 | 508 | 306 | 319 | 238 |
What this means. Paid to shareholders" includes both dividend payments and money the company spent buying back its own shares.
What could change Sainsbury’s dividend?
For the year to February 2027, management guides to continuing underlying operating profit of £1,025 million–£1,065 million. It guides to the company’s own free cash flow of at least £500 million. Its three-year commitments include £1.6 billion of retail free cash flow and £1 billion of cost savings. Nectar360 must add at least £100 million of incremental profit over three years to March 2027. The FY2027 buyback totals £300 million, with £100 million remaining at the latest results.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Dividends per share | 0.14 (0.14 / 0.14) | 0.15 (0.13 / 0.15) | 0.15 (0.13 / 0.17) |
What is Sainsbury’s dividend yield today against its share price?
A 3.9% dividend yield implies roughly £304 million of annual distributions on the market value. The remaining cash must also fund buybacks, separation costs, store upkeep, competitive prices and debt obligations. The price is therefore assuming that Sainsbury’s can make its simpler business consistently cash-generative without relying on another asset sale.