Bellway

Website: Bellway
Index: FTSE 250
EPIC: BWY
Supersector: Personal and Household Goods
Sector: Household Goods and Home Construction
Subsector: Home Construction
Market Cap: £3.13B
Payout Frequency: Semi-Annual

Next Bellway Dividend

Bellway next goes ex-dividend on 04/12/2025. This will be the Final dividend for 2025.

The dividend per share amount is 49.00p (GBP) and the payment date is 14/01/2026.

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.

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 (2624p) = 2.25%

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	-61.42
2023	45.000	95.000	GBX	140.000	0.00
2022	45.000	95.000	GBX	140.000	19.14
2021	35.000	82.500	GBX	117.500	135.00
2020		50.000	GBX	50.000	-66.75
2019	50.400	100.000	GBX	150.400	5.17
2018	48.000	95.000	GBX	143.000	17.21
2017	37.500	84.500	GBX	122.000	12.96
2016	34.000	74.000	GBX	108.000	40.25
2015	25.000	52.000	GBX	77.000	48.07
2014	16.000	36.000	GBX	52.000	73.33
2013	9.000	21.000	GBX	30.000

Number of Shares:

Payment	Paid	Amount
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