AstraZeneca

Website: AstraZeneca
Index: FTSE 100
EPIC: AZN
Supersector: Health Care
Sector: Pharmaceuticals and Biotechnology
Subsector: Pharmaceuticals
Market Cap: £223.37B
Payout Frequency: Semi-Annual

AstraZeneca Dividend Analysis and Summary

Key dividend details

Dividend declared: Second interim dividend of $2.17 per share (159.5p; 19.49 SEK).
Full-year DPS (FY 2025): $3.20 per share, up 3% year on year.
Ex-dividend date (LSE/Nasdaq Stockholm): 19/02/2026; NYSE ex-div: 20/02/2026.
Record date: 20/02/2026.
Payment date: 23/03/2026.
Policy/Outlook: Board reaffirms progressive dividend policy and intends to increase FY 2026 annual DPS to $3.30 (subject to approvals).
Dividends paid principally in GBP and SEK are fully hedged from announcement to payment, reducing FX risk to payouts.

Dividend sustainability and cover

EPS cover: FY 2025 Core EPS $9.16 and Reported EPS $6.60 vs DPS $3.20 imply cover of ~2.9x (Core) and ~2.1x (Reported). Payout ratios ~35% (Core) and ~49% (Reported).
Cash flow cover: Operating cash flow $14.6bn vs dividends paid ~$5.0bn (~3.0x coverage). Capex was $3.27bn, still leaving ample headroom.
Balance sheet: Net debt $23.4bn; EBITDA $19.5bn (~1.2x net debt/EBITDA). Investment-grade ratings (Moody’s A1; S&P A+) support dividend capacity.
Earnings/guidance: FY 2025 Total Revenue +9% and Core EPS +12%; FY 2026 guidance: Total Revenue mid–high single-digit growth and Core EPS low double-digit growth (at CER), underpinning dividend progression.

Dividend growth trajectory

DPS increased 3% in FY 2025 to $3.20.
Company signals another step-up to $3.30 for FY 2026 (c. +3%), consistent with a steady, progressive path.

Support from financial performance and capital allocation

Broad-based revenue growth in Oncology, R&I and Rare Disease; strong pipeline momentum supports medium-term cash generation.
Capital allocation priorities reiterated: invest in growth (R&D and manufacturing), maintain strong credit rating, pursue value-accretive BD, and support a progressive dividend.
Note: Management plans a ~one-third increase in 2026 capex and continues to deploy BD (e.g., CSPC collaboration upfront $1.2bn, Jacobio $100m upfront, China investments through 2030). Current cash generation and balance sheet indicate these are manageable alongside dividends.

Structural or policy developments relevant to future dividends

Listing harmonisation: Ordinary shares began trading on the NYSE (2 Feb 2026), aligning London, New York and Stockholm listings. Admin impact only; no change to dividend policy. Note distinct ex-div dates by market (LSE/Stockholm: 19 Feb 2026; NYSE: 20 Feb 2026).
Cross-border settlement caution: Company advises against moving shares across markets around record dates, which can affect where the dividend is received.
Policy reaffirmed: Explicit commitment to a progressive dividend and intention to lift FY 2026 DPS to $3.30.

Risks and flags for dividend stability

Pricing and policy headwinds: US Medicare Part D redesign and IRA negotiation exposure (e.g., Calquence litigation) may pressure margins; EU/China pricing dynamics (e.g., VBP) also noted.
Product mix and collaboration economics: Rising contribution of alliance/profit-share products dilutes gross margin, though scale offsets support earnings.
Litigation/regulatory: Ongoing IP and commercial cases; China investigations; while typical for large pharma, adverse outcomes could add costs.
Generics/competition: Erosion in certain franchises (e.g., Brilinta, Farxiga in some markets) requires pipeline execution to sustain growth.
Investment intensity: Higher 2026 capex and substantial BD commitments elevate cash needs, but current cash flow and leverage remain compatible with the stated dividend path.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
20/02/2025	24/03/2025	2nd Interim	210.00¢	USX
07/08/2025	08/09/2025	1st Interim	103.00¢	USX

Total (Annual Dividends Per Share): 234.58p (Using exchange rate on 17/03/2026 $ = £0.74946)

Dividend Yield = Annual Dividends Per Share (234.58p) ÷ Share Price (14276p) = 1.64%

Ex Dividend Date	Payment Date	Type	Amount	Currency
19/02/2026	23/03/2026	2nd Interim	217.00¢	USX
07/08/2025	08/09/2025	1st Interim	103.00¢	USX
20/02/2025	24/03/2025	2nd Interim	210.00¢	USX
08/08/2024	09/09/2024	1st Interim	100.00¢	USX
22/02/2024	25/03/2024	2nd Interim	197.00¢	USX
10/08/2023	11/09/2023	1st Interim	93.00¢	USX
23/02/2023	27/03/2023	2nd Interim	197.00¢	USX
11/08/2022	12/09/2022	1st Interim	93.00¢	USX
24/02/2022	28/03/2022	2nd Interim	197.00¢	USX
12/08/2021	13/09/2021	1st Interim	90.00¢	USX
25/02/2021	29/03/2021	2nd Interim	190.00¢	USX
13/08/2020	14/09/2020	1st Interim	90.00¢	USX
27/02/2020	30/03/2020	2nd Interim	190.00¢	USX
08/08/2019	09/09/2019	1st Interim	90.00¢	USX
08/08/2019	09/09/2019	Interim	90.00¢	USX
28/02/2019	27/03/2019	2nd Interim	190.00¢	USX
09/08/2018	10/09/2018	1st Interim	90.00¢	USX
15/02/2018	19/03/2018	2nd Interim	190.00¢	USX
10/08/2017	11/09/2017	1st Interim	90.00¢	USX
16/02/2017	20/03/2017	2nd Interim	190.00¢	USX
11/08/2016	12/09/2016	1st Interim	90.00¢	USX
17/02/2016	21/03/2016	2nd Interim	190.00¢	USX
13/08/2015	14/09/2015	1st Interim	90.00¢	USX
19/02/2015	23/03/2015	2nd Interim	190.00¢	USX
13/08/2014	15/09/2014	1st Interim	90.00¢	USX
19/02/2014	24/03/2014	2nd Interim	190.00¢	USX
14/08/2013	16/09/2013	1st Interim	90.00¢	USX

Year	Interim	Currency	Total	Change
2024		USX	297.000	2.410
2023		USX	290.000	0.000
2022		USX	290.000	3.570
2021		USX	280.000	0.000
2020		USX	280.000	-24.320
2019	90.000	USX	370.000	32.140
2018		USX	280.000	0.000
2017		USX	280.000	0.000
2016		USX	280.000	0.000
2015		USX	280.000	0.000
2014		USX	280.000	211.110
2013		USX	90.000

Number of Shares:

Payment	Paid	Amount
Next	–	–
Previous	–	–