Bellway
Website:
Bellway
Index:
FTSE 250
EPIC: BWY
Supersector:
Personal and Household Goods
Sector:
Household Goods and Home Construction
Subsector:
Home Construction
Market Cap:
£3.09B
Payout Frequency: Semi-Annual
Bellway Dividend Analysis and Summary
Declared Dividend and Key Dates
- Final dividend (FY25): 49.0p per share (subject to AGM approval on 27/11/2025).
- Total ordinary dividend (FY25): 70.0p per share (FY24: 54.0p; +29.6% YoY).
- Ex-dividend date: 04/12/2025.
- Record date: 05/12/2025.
- Payment date: 14/01/2026.
Dividend Cover and Policy
- Underlying EPS (FY25): 176.7p; total DPS: 70.0p ? underlying cover ˜ 2.5x, in line with stated policy.
- Policy reaffirmed: maintain ordinary dividend with 2.5x underlying cover.
Other Shareholder Returns
- New share buyback programme: £150m over the next 12 months (first £75m tranche irrevocable; intent to continue returning excess capital in future years).
Financial Backdrop (FY25 highlights)
- Underlying PBT: £289.1m (+27.9%); underlying operating margin: 10.9% (+90 bps).
- Adjusted operating cash flow: £638.9m; cash from operations: £222.0m.
- Net cash at year-end: £41.8m; adjusted gearing (incl. land creditors): 8.3%.
- Proposed FY26 guidance: volumes ~9,200 homes, ASP ~£320k, underlying operating margin ~11%.
Analysis: Sustainability and Growth
- Coverage and earnings support: The proposed 70.0p DPS is well covered by 176.7p underlying EPS (˜2.5x), consistent with policy. Strong FY25 earnings growth (+30.7% underlying EPS) and margin recovery underpin the uplift.
- Cash generation and balance sheet: Robust cash generation (adjusted operating cash flow £638.9m) and a net cash position support both the dividend and buyback. Low adjusted gearing leaves financial headroom.
- Trajectory: Management targets steady volume growth (to ~10,000 homes by FY28) and improved RoE via capital efficiency and strategic land mix. If FY26 guidance (stable margins/volume growth) is achieved, DPS growth remains credible alongside buybacks.
- Capital allocation discipline: Ordinary dividend maintained at 2.5x cover with excess capital returned via buybacks. This suggests DPS will flex with earnings; buybacks should enhance per-share growth through a lower share count.
Structural/Policy Changes Affecting Future Dividends
- Share buyback (£150m): Represents a meaningful additional return and may support per-share dividend capacity over time.
- Refreshed capital allocation framework: Emphasis on cash generation, low gearing, and RoE improvement; ordinary dividend policy unchanged at 2.5x cover.
- LTIP aligned to higher RoE by FY28; no demerger/share consolidation announced. The previously explored Crest Nicholson M&A (aborted in 2024) is not progressing.
Risks and Flags Relevant to Dividend Stability
- Legacy building safety obligations: Remaining provision of £516.4m; cash outflows expected mainly over the next five years. Adjusting finance expense guided at ~£15m in FY26. This remains a multi-year cash claim on resources.
- Market conditions: Ongoing affordability constraints and planning delays could pressure volumes/pricing. Management notes softer recent trading and reliance on supportive policy.
- CMA commitments: One-off £13.5m contribution (total £15.4m including costs) recognised; limited ongoing impact but highlights regulatory risk.
- Policy flexibility: In severe downside scenarios, the Board models dividends reducing in line with earnings; the 2.5x cover framework implies DPS will adjust if profits fall.
Read more
Bellway Annual Dividend Yield - 2.25%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 28/11/2024 |
08/01/2025 |
Final |
38.00p |
GBX |
| 22/05/2025 |
01/07/2025 |
Interim |
21.00p |
GBX |
Total (Annual Dividends Per Share):
59.00p
Dividend Yield =
Annual Dividends Per Share (59.00p)
÷ Share Price (2620p)
= 2.25%
Bellway Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 04/12/2025 |
14/01/2026 |
Final |
49.00p |
GBX |
| 22/05/2025 |
01/07/2025 |
Interim |
21.00p |
GBX |
| 28/11/2024 |
08/01/2025 |
Final |
38.00p |
GBX |
| 23/05/2024 |
01/07/2024 |
Interim |
16.00p |
GBX |
| 30/11/2023 |
10/01/2024 |
Final |
95.00p |
GBX |
| 25/05/2023 |
03/07/2023 |
Interim |
45.00p |
GBX |
| 01/12/2022 |
11/01/2023 |
Final |
95.00p |
GBX |
| 19/05/2022 |
01/07/2022 |
Interim |
45.00p |
GBX |
| 02/12/2021 |
12/01/2022 |
Final |
82.50p |
GBX |
| 20/05/2021 |
01/07/2021 |
Interim |
35.00p |
GBX |
| 26/11/2020 |
08/01/2021 |
Final |
50.0p |
GBX |
| 28/11/2019 |
08/01/2020 |
Final |
100p |
GBX |
| 23/05/2019 |
04/07/2019 |
Interim |
50.40p |
GBX |
| 29/11/2018 |
09/01/2019 |
Final |
95.00p |
GBX |
| 24/05/2018 |
02/07/2018 |
Interim |
48.00p |
GBX |
| 30/11/2017 |
10/01/2018 |
Final |
84.50p |
GBX |
| 18/05/2017 |
03/07/2017 |
Interim |
37.50p |
GBX |
| 01/12/2016 |
11/01/2017 |
Final |
74.00p |
GBX |
| 19/05/2016 |
01/07/2016 |
Interim |
34.00p |
GBX |
| 03/12/2015 |
13/01/2016 |
Final |
52.00p |
GBX |
| 28/05/2015 |
01/07/2015 |
Interim |
25.00p |
GBX |
| 11/12/2014 |
14/01/2015 |
Final |
36.00p |
GBX |
| 28/05/2014 |
01/07/2014 |
Interim |
16.00p |
GBX |
| 11/12/2013 |
15/01/2014 |
Final |
21.00p |
GBX |
| 22/05/2013 |
01/07/2013 |
Interim |
9.00p |
GBX |
| Year |
Interim |
Final |
Currency |
Total |
Change |
| 2024 |
16.000 |
38.000 |
GBX |
54.000 |
-61.420 |
| 2023 |
45.000 |
95.000 |
GBX |
140.000 |
0.000 |
| 2022 |
45.000 |
95.000 |
GBX |
140.000 |
19.140 |
| 2021 |
35.000 |
82.500 |
GBX |
117.500 |
135.000 |
| 2020 |
|
50.000 |
GBX |
50.000 |
-66.750 |
| 2019 |
50.400 |
100.000 |
GBX |
150.400 |
5.170 |
| 2018 |
48.000 |
95.000 |
GBX |
143.000 |
17.210 |
| 2017 |
37.500 |
84.500 |
GBX |
122.000 |
12.960 |
| 2016 |
34.000 |
74.000 |
GBX |
108.000 |
40.250 |
| 2015 |
25.000 |
52.000 |
GBX |
77.000 |
48.070 |
| 2014 |
16.000 |
36.000 |
GBX |
52.000 |
73.330 |
| 2013 |
9.000 |
21.000 |
GBX |
30.000 |
|
Bellway Dividend Calculator
Bellway Dividend Growth
| Dividend Growth (1Y) |
29.63%
|
| Dividend CAGR (5Y) |
6.96%
|
| Years of Growth |
–
|
| Payout Ratio |
44.44%
|
| Buyback Yield |
0.12%
|
| Shareholder Yield |
2.79%
|
| P/E Ratio (TTM) | 19.88 |
|---|
| Forward P/E | 13.65 |
|---|
| P/FCF | 24.18 |
|---|
| Earnings Yield | 5.12% |
|---|
| FCF Yield | 4.13% |
|---|
| ROE | 4.49% |
|---|
| ROCE | 7.36% |
|---|
| Profit Margin | 5.66% |
|---|
| Operating Margin | 10.91% |
|---|
| Gross Margin | 16.42% |
|---|