BT Group
Website:
BT Group
Index:
FTSE 100
EPIC: BT.A
Supersector:
Telecommunications
Sector:
Fixed Line Telecommunications
Subsector:
Fixed Line Telecommunications
Market Cap:
£17.88B
Payout Frequency: Semi-Annual
Next BT Group Dividend
BT Group next goes ex-dividend on 29/12/2025. This will be the Interim dividend for 2025.
The dividend per share amount is 2.4500p (GBP) and the payment date is 11/02/2026.
BT Group Dividend Analysis and Summary
Key dividend details
- Declared interim dividend: 2.45 pence per share (up 2% year-on-year; H1 FY25: 2.40p).
- Policy: Progressive — maintain or grow annually; interim fixed at 30% of the prior year’s full-year dividend. (Implied FY25 full-year dividend c. 8.17p.)
- Ex-dividend date: 29/12/2025
- Record date: 30/12/2025
- Payment date: 11/02/2026
Dividend sustainability and growth
- Coverage (earnings): H1 adjusted EPS 9.30p vs interim 2.45p suggests robust interim cover (~3.8x) on a half-year basis.
- Coverage (cash): H1 normalised free cash flow (FCF) £408m comfortably covers the estimated interim cash cost (~£245m, assuming ~10bn shares), albeit FCF fell 43% year-on-year.
- Full-year cash outlook: FY26 FCF guidance of c. £1.5bn implies headroom over a likely full-year dividend outlay of c. £800–850m (using an ~8.1–8.3p base). Mid-term guidance points to FCF of ~£2.0bn in FY27 and ~£3.0bn by decade-end, supporting a gradual dividend growth trajectory.
- Operational support: EBITDA flat year-on-year at £4.1bn despite revenue pressure, underpinned by cost transformation (£247m annualised H1 savings; £1.2bn cumulative) and improving Openreach FTTP mix and ARPU.
Capital allocation and balance sheet context
- Investment: Capex running high to fund fibre rollout (£2.4bn in H1; FY26 guide ~£5.0bn) but expected to reduce by >£1bn from FY26 levels, easing cash demands medium term.
- Leverage: Net debt £20.9bn (up from £19.8bn at Mar-25), reflecting pension contributions and full-year dividend payment; credit ratings stable at BBB/equivalent with a £2.1bn undrawn facility.
- Pension: IAS 19 deficit £3.9bn with £0.8bn scheduled contributions in H1; a funding mechanism could require additional contributions if the scheme falls behind plan — a key cash call to monitor.
Structural changes and potential dividend impact
- Portfolio reshaping: Agreed sale of BT Radianz; completed sales of BT Italia, Irish datacentre business, and Ireland domestic operations. International unit being reshaped; Business now fully UK-focused.
- Implications: Disposals should simplify the group and may enhance cash conversion and reduce execution risk; near-term earnings contribution from disposed assets will fall, but strategy aligns with focusing investment and returns on UK connectivity.
Risks and flags for dividend stability
- FCF volatility: H1 normalised FCF down 43% y/y; delivery of H2 weighting is important to meet FY26 £1.5bn target.
- Pension funding: Potential for additional contributions under the funding covenant if the scheme underperforms plan.
- Operational headwinds: Revenue declines in legacy voice, softer retail pricing, and lower handset volumes; partly offset by Openreach CPI-linked increases and FTTP penetration.
- High capex and labour costs near term (NI/NLW), though capex moderation is guided beyond FY26.
- Interest burden: Higher finance costs with elevated net debt could constrain incremental dividend growth if rates remain high.
Read more
BT Group Annual Dividend Yield - 4.61%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 24/12/2024 |
05/02/2025 |
Interim |
2.40p |
GBX |
| 07/08/2025 |
10/09/2025 |
Final |
5.76p |
GBX |
Total (Annual Dividends Per Share):
8.16p
Dividend Yield =
Annual Dividends Per Share (8.16p)
÷ Share Price (177.1p)
= 4.61%
BT Group Dividend History
| Ex Dividend Date | Payment Date | Type | Amount | Currency |
| 29/12/2025 | 11/02/2026 | Interim | 2.4500p | GBX |
| 07/08/2025 | 10/09/2025 | Final | 5.76p | GBX |
| 24/12/2024 | 05/02/2025 | Interim | 2.40p | GBX |
| 08/08/2024 | 11/09/2024 | Final | 5.69p | GBX |
| 28/12/2023 | 02/02/2024 | Interim | 2.31p | GBX |
| 03/08/2023 | 13/09/2023 | Final | 5.39p | GBX |
| 29/12/2022 | 06/02/2023 | Interim | 2.31p | GBX |
| 04/08/2022 | 12/09/2022 | Final | 5.39p | GBX |
| 30/12/2021 | 07/02/2022 | Interim | 2.31p | GBX |
| 24/12/2019 | 03/02/2020 | Interim | 4.62p | GBX |
| 08/08/2019 | 09/09/2019 | Final | 10.78p | GBX |
| 27/12/2018 | 04/02/2019 | Interim | 4.62p | GBX |
| 09/08/2018 | 03/09/2018 | Final | 10.55p | GBX |
| 28/12/2017 | 05/02/2018 | Interim | 4.85p | GBX |
| 10/08/2017 | 04/09/2017 | Final | 10.55p | GBX |
| 29/12/2016 | 06/02/2017 | Interim | 4.85p | GBX |
| 11/08/2016 | 05/09/2016 | Final | 9.60p | GBX |
| 24/12/2015 | 08/02/2016 | Interim | 4.40p | GBX |
| 13/08/2015 | 07/09/2015 | Final | 8.50p | GBX |
| 29/12/2014 | 09/02/2015 | Interim | 3.90p | GBX |
| 13/08/2014 | 08/09/2014 | Final | 7.50p | GBX |
| 23/12/2013 | 03/02/2014 | Interim | 3.40p | GBX |
| 07/08/2013 | 02/09/2013 | Final | 6.50p | GBX |
| 24/12/2012 | 04/02/2013 | Interim | 3.00p | GBX |
| 08/08/2012 | 03/09/2012 | Final | 5.70p | GBX |
| 28/12/2011 | 06/02/2012 | Interim | 2.60p | GBX |
| 10/08/2011 | 05/09/2011 | Final | 5.00p | GBX |
| 29/12/2010 | 07/02/2011 | Interim | 2.40p | GBX |
| 11/08/2010 | 06/09/2010 | Final | 4.60p | GBX |
| 23/12/2009 | 08/02/2010 | Interim | 2.30p | GBX |
| 12/08/2009 | 07/09/2009 | Final | 1.10p | GBX |
| 24/12/2008 | 09/02/2009 | Interim | 5.40p | GBX |
| 20/08/2008 | 15/09/2008 | Final | 10.40p | GBX |
| 24/12/2007 | 11/02/2008 | Interim | 5.40p | GBX |
| 22/08/2007 | 17/09/2007 | Final | 10.00p | GBX |
| 27/12/2006 | 12/02/2007 | Interim | 5.10p | GBX |
| 16/08/2006 | 11/09/2006 | Final | 7.60p | GBX |
| 28/12/2005 | 13/02/2006 | Interim | 4.30p | GBX |
| 03/08/2005 | 05/09/2005 | Final | 6.50p | GBX |
| 29/12/2004 | 07/02/2005 | Interim | 3.90p | GBX |
| 06/08/2004 | 06/09/2004 | Final | 5.30p | GBX |
| 30/12/2003 | 09/02/2004 | Interim | 3.20p | GBX |
| 08/08/2003 | 08/09/2003 | Final | 4.25p | GBX |
| 31/12/2002 | 10/02/2003 | Interim | 2.25p | GBX |
| 09/08/2002 | 09/09/2002 | Final | 2.00p | GBX |
| Year | Interim | Final | Currency | Total | Change (%) |
| 2024 | 2.400 | 5.690 | GBX | 8.090 | 5.06 |
| 2023 | 2.310 | 5.390 | GBX | 7.700 | 0.00 |
| 2022 | 2.310 | 5.390 | GBX | 7.700 | 233.33 |
| 2021 | 2.310 | | GBX | 2.310 | -85.00 |
| 2019 | 4.620 | 10.780 | GBX | 15.400 | 1.51 |
| 2018 | 4.620 | 10.550 | GBX | 15.170 | -1.49 |
| 2017 | 4.850 | 10.550 | GBX | 15.400 | 6.57 |
| 2016 | 4.850 | 9.600 | GBX | 14.450 | 12.01 |
| 2015 | 4.400 | 8.500 | GBX | 12.900 | 13.15 |
| 2014 | 3.900 | 7.500 | GBX | 11.400 | 15.15 |
| 2013 | 3.400 | 6.500 | GBX | 9.900 | 13.79 |
| 2012 | 3.000 | 5.700 | GBX | 8.700 | 14.47 |
| 2011 | 2.600 | 5.000 | GBX | 7.600 | 8.57 |
| 2010 | 2.400 | 4.600 | GBX | 7.000 | 105.88 |
| 2009 | 2.300 | 1.100 | GBX | 3.400 | -78.48 |
| 2008 | 5.400 | 10.400 | GBX | 15.800 | 2.59 |
| 2007 | 5.400 | 10.000 | GBX | 15.400 | 21.25 |
| 2006 | 5.100 | 7.600 | GBX | 12.700 | 17.59 |
| 2005 | 4.300 | 6.500 | GBX | 10.800 | 17.39 |
| 2004 | 3.900 | 5.300 | GBX | 9.200 | 23.48 |
| 2003 | 3.200 | 4.250 | GBX | 7.450 | 75.29 |
| 2002 | 2.250 | 2.000 | GBX | 4.250 | |
BT Group Dividend Calculator
BT Group Dividend Growth
| Dividend Growth (1Y) |
1.48%
|
| Dividend CAGR (5Y) |
28.87%
|
| Years of Growth |
1
|
| Payout Ratio |
84%
|
| Buyback Yield |
-0.45%
|
| Shareholder Yield |
4.1%
|
BT Group Valuation & Profitability
| P/E Ratio (TTM) |
18.7
|
| Forward P/E |
10.22
|
| P/FCF |
10.45
|
| Earnings Yield |
5.41%
|
| FCF Yield |
9.57%
|
| ROE |
7.56%
|
| ROCE |
7.49%
|
| Profit Margin |
4.74%
|
| Operating Margin |
15.32%
|
| Gross Margin |
46.94%
|