AJ Bell

Website: AJ Bell
Index: FTSE 250
EPIC: AJB
Supersector: Financial Services
Sector: Financial Services
Subsector: Investment Services
Market Cap: £2.46B
Payout Frequency: Semi-Annual

AJ Bell Dividend Analysis and Summary

Declared Dividend and Key Dates

Dividend type: Interim
Dividend per share: 5.00 pence (up 11% vs HY25: 4.50p)
Ex-dividend date: 04/06/2026
Record date: 05/06/2026
Payment date: 26/06/2026
Currency: GBP
Policy/returns: Progressive dividend maintained; additional £15m buyback announced on top of the ongoing £50m programme. Total capital returned over the past 12 months: £77.3m (final dividend £39.0m + £38.3m buybacks).

Coverage and Cash Support

H1 underlying diluted EPS: 14.61p; interim DPS cover c.2.9x.
H1 cash from operations: £64.9m; cash balance at 31 Mar 2026: £167.6m; strong regulatory capital surplus maintained.
Underlying PBT margin: 43.2%; management now expects FY revenue margin, PBT and PBT margin to be higher than previously guided.

Context and Trajectory

Operational momentum: record net inflows £4.2bn, platform AUA up to £108.7bn, customer base +12% to 723k.
Dividend growth: interim DPS up 11%, consistent with the stated progressive dividend framework; share buybacks reduce share count, supporting per-share dividend growth.
Prior payout reference: FY25 final dividend 9.75p paid in the period, evidencing ongoing cash returns alongside buybacks.

Assessment of Sustainability

Earnings cover is robust (c.2.9x on H1 underlying EPS) and backed by high margins and strong cash conversion, indicating good headroom for the interim and scope for a progressive full-year dividend.
Capital allocation remains disciplined: progressive DPS alongside buybacks funded by surplus capital and cash generation; disposal proceeds and deferred consideration further support liquidity.
Business mix supports resilience: diversified revenue (ad valorem, transactional, net interest on client cash) with scalable operations; management still guiding to higher FY profitability despite stepped-up investment.

Structural/Strategic Changes Relevant to Dividends

Completed sale of the Platinum SIPP and SSAS business (Nov 2025), realising a £21.4m gain and simplifying the group; deferred consideration expected in H2 FY26.
Plan to exit the remaining third-party SIPP arrangement in H2, further focusing on the core platform.
Discontinuation of AJ Bell Touch as a standalone platform (intangible fully impaired) with capabilities repurposed into the core proposition—no cash drain going forward and potentially improves focus/returns.
Ongoing and incremental share buyback programmes (£50m ongoing; additional £15m announced) reduce share count, supporting DPS per share growth.

Risks and Flags to Dividend Stability

Revenue sensitivity to client cash yields and market activity: net interest income and trading volumes boosted H1; a decline in interest rates or activity could compress the 33.4bps revenue margin.
Higher H2 investment in brand/technology may trim margins in the short term (though guidance remains for higher FY margins vs prior guidance).
Regulatory and policy uncertainty in pensions/ISAs has previously driven excess withdrawals; continued volatility around fiscal events could affect inflows/outflows.
Legacy matters: redress provision at £5.9m (current) and “other provisions” persist, though not flagged as material to capital returns at present.
Market/geopolitical volatility noted by management could impact AUA and activity levels, though dual-channel model has shown resilience.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
09/01/2025	07/02/2025	Final	8.25p	GBX
05/06/2025	27/06/2025	Interim	4.50p	GBX

Total (Annual Dividends Per Share): 12.75p

Dividend Yield = Annual Dividends Per Share (12.75p) ÷ Share Price (602.5p) = 2.12%

Ex Dividend Date	Payment Date	Type	Amount	Currency
05/06/2025	27/06/2025	Interim	4.50p	GBX
09/01/2025	07/02/2025	Final	8.25p	GBX
06/06/2024	28/06/2024	Interim	4.25p	GBX
11/01/2024	09/02/2024	Final	7.25p	GBX
08/06/2023	30/06/2023	Interim	3.50p	GBX
19/01/2023	17/02/2023	Final	4.59p	GBX
09/06/2022	01/07/2022	Interim	2.78p	GBX
06/01/2022	04/02/2022	Special	5.00p	GBX
06/01/2022	04/02/2022	Final	4.50p	GBX
10/06/2021	02/07/2021	Interim	2.46p	GBX
07/01/2021	05/02/2021	Final	4.66p	GBX
04/06/2020	26/06/2020	Interim	1.50p	GBX
09/01/2020	31/01/2020	Final	3.33p	GBX
06/06/2019	28/06/2019	Interim	1.50p	GBX

Year	Interim	Final	Special	Currency	Total	Change
2024	4.250	8.250		GBX	12.500	16.270
2023	3.500	7.250		GBX	10.750	-13.090
2022	2.780	4.590	5.000	GBX	12.370	77.720
2021	2.460	4.500		GBX	6.960	12.980
2020	1.500	4.660		GBX	6.160	27.530
2019	1.500	3.330		GBX	4.830

Number of Shares:

Payment	Paid	Amount
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