SSE dividend: payout, coverage and yield
SSE's latest dividend was 68.7p per share; the forecast shows 72p rising to 80p in the base case. Free cash flow was negative in FY26, so the business did not cover the dividend from free cash flow.
How much does SSE pay per share?
Dividends grow from 72p to 80p in the base case, remain at 69p in the bear case and reach 91p in the bull case. The base applies the low end of SSE’s stated 5–10% policy, while the bull applies the high end. The bear case holds the latest 68.7p dividend flat because capital spending exceeded operating cash and free cash flow was negative in FY26. The flat assumption is cautious rather than catastrophic: the historic reset from 96.7p to 60.0p shows that a cut remains possible if funding deteriorates.
Does SSE's dividend come from cash the business makes?
After construction spending and lease payments, free cash flow was negative. That can be sensible during expansion, but only if the new networks and generation assets eventually produce adequate cash returns. SSE’s “real free cash flow” goes further by subtracting share-based compensation. The shares require no immediate cash payment, but they are still an economic cost to existing owners.
| Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | |
|---|---|---|---|---|---|
| Free cash flow | -1,071.2 | -761.1 | 1,248.8 | -416.5 | 77.0 |
| − Dividends paid | 601.1 | 402.1 | 917.8 | 474.3 | 506.6 |
| − Share buybacks | 0 | 71.7 | 0 | 107.6 | 0 |
| = Free cash flow not paid out | 331.0 | ||||
| = Paid out more than the free cash flow | 1,672.3 | 1,234.9 | 998.4 | 429.6 |
What this means. The company’s own net debt is higher because it includes lease payments that our count leaves out.
What could change SSE's dividend?
Management guides to adjusted EPS of 168–193p for FY2027 and targets 225–250p for FY2030. It plans about £5.0bn of FY2027 capital investment and guides to net debt/EBITDA no higher than 4.5x. It expects annual dividend growth of 5–10% through FY2028.
The bear probability would rise if FY27 results show missed adjusted EPS guidance, weaker margins or transmission overruns. Higher borrowing costs during FY27–FY30 would further weaken project returns, dividend growth and the valuation multiple.
What is SSE's dividend yield today?
Revenue fell from £12,490.7m in FY2023 to £10,186.5m in FY2026, while the company’s own real free cash flow swung from positive 11.7% of revenue in FY2024 to negative 10.8% in FY2026. Diluted EPS fell from 156.50p in FY2024 to 105.40p in FY2026. At 2521.00p on 15 October 2026, the valuation carried a 23.9x trailing P/E, a negative 3.5% free cash flow yield and a 2.7% dividend yield.
| Today (Oct 15, 2026) | |
|---|---|
| Share price | 2521.00 |
| P/E, last 12 months (calculated) | 23.9x |
| Free cash flow yield (calculated) | -3.5% |
| Dividend yield (calculated) | 2.7% |