3i Group

Website: 3i Group
Index: FTSE 100
EPIC: III
Supersector: Financial Services
Sector: Financial Services
Subsector: Specialty Finance
Market Cap: £31.34B
Payout Frequency: Semi-Annual

3i Group Dividend Analysis and Summary

Key dividend details

Dividend: 36.5p per share (first FY2026 dividend; set at 50% of FY2025 total)
Ex-dividend date: 27/11/2025
Record date: 28/11/2025
Payment date: 09/01/2026
Year-on-year change (first dividend): +19.7% vs 30.5p in H1 FY2025
FY2025 total dividend reference: 73.0p (policy aims to maintain or grow dividend)
Cash cost of proposed first FY2026 dividend: ~£358m

Context and coverage

Liquidity: £1,639m (cash £439m + undrawn RCF £1.2bn); net debt £772m, gearing 3%.
Performance: H1 total return £3,291m (13% on opening equity); NAV per share 2,857p.
Cash generation: H1 operating cash loss £12m, but management expects FY operating cash profit; portfolio cash income £87m in H1.
Realisations and inflows: H1 Private Equity proceeds £391m; post-period Action capital restructuring distributed £944m to 3i, with £755m reinvested (net ~£189m inflow).

Dividend sustainability and growth outlook

Sustainability: The proposed 36.5p interim is well supported by very strong NAV growth, low gearing, ample liquidity and recent realisations. Although H1 showed a small operating cash deficit, management guides to a cash operating profit for the full year, and proceeds/recycling provide further headroom.
Growth trajectory: First-half dividend up ~20% YoY. Policy sets the first dividend at 50% of the prior year’s total and aims to maintain or grow annually, implying a base to at least match the 73.0p FY2025 total, subject to year-end assessment.
Coverage drivers: Ongoing portfolio cash income (dividends/interest), selective realisations, and disciplined capital allocation underpin the payout. The enlarged stake in Action supports future value compounding, albeit with concentration risk.

Structural changes and capital allocation items relevant to dividends

Share issuance: ~19.9m new shares issued in Sept 2025 to acquire 2.2% of Action (non-cash). This increases the cash cost of dividends at a given per-share rate but was offset by enhanced exposure to Action’s compounding returns.
Action transactions: Oct 2025 refinancing and pro-rata share redemption generated £944m gross proceeds to 3i; £755m redeployed to lift ownership to 62.3%. Debt repricing also reduced Action’s interest costs.
RCF refinanced: New £1.2bn facility to July 2030 (options to 2032), improving flexibility to fund dividends and investments through cycles.
Realisations: Completed MPM sale (£395m proceeds) and MAIT signed (completed Nov 2025; £147m), bolstering liquidity and reinforcing the realisation track record.

Risks and flags to dividend stability

Portfolio concentration: Significant reliance on Action for value creation; softening consumer conditions in France could moderate LFL growth.
Market and transaction risk: Management notes a challenging macro/geopolitical backdrop and potentially slower transaction markets, which could affect future realisations/cash inflows.
FX volatility: Results are sensitive to EUR/GBP; although hedging is in place, currency swings can affect reported returns and distributable capacity.
Share count increase: The September 2025 issuance raises aggregate dividend cash outlay for a given per-share rate (mitigated by strong liquidity and performance).

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
28/11/2024	10/01/2025	Interim	30.50p	GBX
19/06/2025	25/07/2025	Final	42.50p	GBX

Total (Annual Dividends Per Share): 73.00p

Dividend Yield = Annual Dividends Per Share (73.00p) ÷ Share Price (3210p) = 2.27%

Ex Dividend Date	Payment Date	Type	Amount	Currency
27/11/2025	09/01/2026	Interim	36.5000p	GBX
19/06/2025	25/07/2025	Final	42.50p	GBX
28/11/2024	10/01/2025	Interim	30.50p	GBX
20/06/2024	26/07/2024	Final	34.50p	GBX
30/11/2023	12/01/2024	Interim	26.50p	GBX
22/06/2023	28/07/2023	Final	29.75p	GBX
01/12/2022	11/01/2023	Interim	23.25p	GBX
16/06/2022	22/07/2022	2nd Interim	27.25p	GBX
02/12/2021	12/01/2022	Interim	19.25p	GBX
17/06/2021	23/07/2021	2nd Interim	21.00p	GBX
03/12/2020	13/01/2021	Interim	17.50p	GBX
11/06/2020	17/07/2020	2nd Interim	17.50p	GBX
12/12/2019	08/01/2020	Interim	17.50p	GBX
13/06/2019	19/07/2019	Final	20.0p	GBX
13/12/2018	09/01/2019	Interim	15.00p	GBX
14/06/2018	20/07/2018	Final	22.00p	GBX
14/12/2017	10/01/2018	Interim	8.00p	GBX
15/06/2017	21/07/2017	Final	18.50p	GBX
08/12/2016	04/01/2017	Interim	8.00p	GBX
16/06/2016	22/07/2016	Final	16.00p	GBX
10/12/2015	06/01/2016	Interim	6.00p	GBX
18/06/2015	24/07/2015	Final	14.00p	GBX
11/12/2014	07/01/2015	Interim	6.00p	GBX
18/06/2014	25/07/2014	Final	13.30p	GBX
11/12/2013	08/01/2014	Interim	2.70p	GBX
11/12/2013	08/01/2014	Special	4.00p	GBX
19/06/2013	26/07/2013	Final	5.40p	GBX
12/12/2012	09/01/2013	Interim	2.70p	GBX
20/06/2012	20/07/2012	Final	5.40p	GBX
07/12/2011	11/01/2012	Interim	2.70p	GBX
15/06/2011	15/07/2011	Final	2.40p	GBX
08/12/2010	12/01/2011	Interim	1.20p	GBX
16/06/2010	16/07/2010	Final	2.00p	GBX
09/12/2009	13/01/2010	Interim	1.00p	GBX
03/12/2008	07/01/2009	Interim	6.30p	GBX

Year	Interim	Final	Special	Currency	Total	Change
2024	30.500	34.500		GBX	65.000	15.550
2023	26.500	29.750		GBX	56.250	11.380
2022	23.250			GBX	50.500	25.460
2021	19.250			GBX	40.250	15.000
2020	17.500			GBX	35.000	-6.660
2019	17.500	20.000		GBX	37.500	1.350
2018	15.000	22.000		GBX	37.000	39.620
2017	8.000	18.500		GBX	26.500	10.410
2016	8.000	16.000		GBX	24.000	20.000
2015	6.000	14.000		GBX	20.000	3.620
2014	6.000	13.300		GBX	19.300	59.500
2013	2.700	5.400	4.000	GBX	12.100	49.380
2012	2.700	5.400		GBX	8.100	58.820
2011	2.700	2.400		GBX	5.100	59.370
2010	1.200	2.000		GBX	3.200	220.000
2009	1.000			GBX	1.000	-84.120
2008	6.300			GBX	6.300

Number of Shares:

Payment	Paid	Amount
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