3i Group

3i Group Dividend Analysis and Summary

• Declared: Second (final) FY2026 dividend of 48.0p per share, subject to shareholder approval.
• Ex-dividend date: Thursday, 18/06/2026
• Record date: Friday, 19/06/2026
• Payment date: Friday, 24/07/2026
• Total FY2026 dividend: 84.5p per share (up from 73.0p in FY2025; +15.8%).
• Policy: Maintain or grow the dividend year-on-year; the first dividend is set at 50% of the prior year’s total dividend.
• Distributable reserves: £11.2bn (capacity to fund distributions).

• Cash coverage and balance sheet: FY2026 cash inflows from the portfolio were ~£1.9bn; operating cash income was £421m versus cash dividends paid to shareholders of £765m in the year (79p). Liquidity stands at £1.86bn with low net gearing of 2% and net debt of £547m. This supports ongoing distributions even if portfolio income timing is lumpy.
• Underlying performance: Total return of £5.3bn (22% on opening funds) and NAV per share up to 3,030p. The portfolio generated a strong GIR of £5.46bn, anchored by Action and resilient Infrastructure/Scandlines cash yields.
• Recurring portfolio cash generation: 3i received £1.19bn from Action in FY2026 and expects a further c.£255m in May 2026. Additional dividends from 3iN (£35m) and Scandlines (£21m) bolster income.
• Dividend growth trajectory: The recommended total of 84.5p extends a long track record of increases under the “maintain or grow” policy. Growth remains reliant on continued distributions/realisations from key assets, primarily Action.
• Conclusion: The final dividend and progressive policy are well supported by portfolio cash distributions, strong NAV growth, and a conservative balance sheet. Coverage depends more on portfolio proceeds than on operating cash income alone, consistent with 3i’s investment company model.