Bunzl
Website:
Bunzl
Index:
FTSE 100
EPIC: BNZL
Supersector:
Industrial Goods and Services
Sector:
Support Services
Subsector:
Business Support Services
Market Cap:
£7.62B
Payout Frequency: Semi-Annual
Bunzl Dividend Analysis and Summary
Declared dividend and key dates
- Final dividend: 53.9p per share for FY2025
- Total FY2025 dividend: 74.1p (interim 20.2p, final 53.9p) — up 0.3% year-on-year
- Ex-dividend date: 21/05/2026
- Record date: 22/05/2026
- Payment date: 02/07/2026
- Cash cost (final): c.£173m (company guidance); total FY2025 dividend cash outflow expected to be c.£240m
- Interim dividend of 20.2p was paid on 05/01/2026
Dividend cover and cash generation
- Dividend cover: 2.4x (adjusted EPS 179.3p vs DPS 74.1p)
- Free cash flow: £578.5m (95% cash conversion), covering total FY2025 dividends c.2.4x
- Leverage: Adjusted net debt/EBITDA 2.0x (target range 2.0–2.5x)
Dividend policy and track record
- Progressive dividend policy maintained; 33rd consecutive year of annual dividend growth
- Long-term DPS CAGR of ~9% since 2004
- Company notes sufficient distributable reserves to cover 6+ years of dividends at 2025 levels
Analysis: sustainability, growth trajectory, and support
- Sustainability: The dividend appears well-supported by strong cash generation (FCF £579m), solid cash conversion, and moderate leverage. Cover of 2.4x on adjusted EPS and FCF provides headroom even as earnings softened in 2025.
- Growth trajectory: FY2025 DPS growth was minimal (+0.3%) as adjusted operating profit declined and margins compressed. Management guides for 2026 operating margin to be “slightly down” year-on-year with a “more stable” profit outlook, implying continued but likely modest dividend progression near term rather than acceleration.
- Financial/capital allocation support: Capital allocation prioritises organic investment and bolt-on M&A, then progressive dividends, with buybacks as excess cash. 2025 saw £132m of acquisitions and a completed £200m buyback, which supports per-share metrics. Refinanced facilities and new bonds extend maturities and underpin liquidity for ongoing dividends and M&A.
Structural or strategic developments affecting dividends
- M&A: Eight bolt-on acquisitions across seven countries; pipeline “active” with improved outlook for 2026.
- Disposals: Sale of US R3 Safety (Jan 2025).
- Share count: £200m 2025 buyback completed; weighted average shares -2.9% YoY, supporting DPS/EPS.
- Operations: Ongoing warehouse consolidations and the Nisbets integration delivering synergies; North America organisational model changes with corrective actions underway.
- Funding: New £250m 2031 and £250m 2036 bonds issued; bank facilities refinanced to 2030, strengthening dividend funding capacity.
Risks and flags to dividend stability
- Earnings pressure: 2026 operating margin guided slightly lower; execution risk persists in North America turnaround; demand softness in certain end markets (e.g., Brazil industrial, North America foodservice/convenience) and tariff-related cost pressures.
- Interest and FX: Net finance expense guided at ~£125m for 2026; FX translation headwinds could affect reported EPS/cover.
- Integration/M&A: Variable acquisition spend and integration risks (including retention payments) could absorb cash, though bolt-ons are self-funded and historically value accretive.
- Regulatory/sustainability: Extended Producer Responsibility and packaging regulation may lift compliance costs for customers; Bunzl’s product breadth and advisory capability mitigate but create execution complexity.
Read more
Bunzl Annual Dividend Yield - 3.15%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 13/11/2025 |
05/01/2026 |
Interim |
20.20p |
GBX |
| 21/05/2026 |
02/07/2026 |
Final |
53.9000p |
GBX |
Total (Annual Dividends Per Share):
74.10p
Dividend Yield =
Annual Dividends Per Share (74.10p)
÷ Share Price (2354p)
= 3.15%
Bunzl Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 21/05/2026 |
02/07/2026 |
Final |
53.9000p |
GBX |
| 13/11/2025 |
05/01/2026 |
Interim |
20.20p |
GBX |
| 22/05/2025 |
02/07/2025 |
Final |
53.80p |
GBX |
| 14/11/2024 |
03/01/2025 |
Interim |
20.10p |
GBX |
| 16/05/2024 |
02/07/2024 |
Final |
50.10p |
GBX |
| 16/11/2023 |
03/01/2024 |
Interim |
18.20p |
GBX |
| 18/05/2023 |
04/07/2023 |
Final |
45.40p |
GBX |
| 17/11/2022 |
04/01/2023 |
Interim |
17.30p |
GBX |
| 19/05/2022 |
04/07/2022 |
Final |
40.80p |
GBX |
| 18/11/2021 |
05/01/2022 |
Interim |
16.20p |
GBX |
| 20/05/2021 |
01/07/2021 |
Final |
38.30p |
GBX |
| 03/12/2020 |
07/01/2021 |
2nd Interim |
15.80p |
GBX |
| 15/10/2020 |
16/11/2020 |
1st Interim |
35.80p |
GBX |
| 21/05/2020 |
01/07/2020 |
Final |
35.80p |
GBX |
| 14/11/2019 |
02/01/2020 |
Interim |
15.50p |
GBX |
| 23/05/2019 |
01/07/2019 |
Final |
35.00p |
GBX |
| 15/11/2018 |
02/01/2019 |
Interim |
15.20p |
GBX |
| 24/05/2018 |
02/07/2018 |
Final |
32.00p |
GBX |
| 16/11/2017 |
02/01/2018 |
Interim |
14.00p |
GBX |
| 25/05/2017 |
03/07/2017 |
Final |
29.00p |
GBX |
| 17/11/2016 |
03/01/2017 |
Interim |
13.00p |
GBX |
| 19/05/2016 |
01/07/2016 |
Final |
26.25p |
GBX |
| 19/11/2015 |
04/01/2016 |
Interim |
11.75p |
GBX |
| 21/05/2015 |
01/07/2015 |
Final |
24.50p |
GBX |
| 06/11/2014 |
02/01/2015 |
Interim |
11.00p |
GBX |
| 07/05/2014 |
01/07/2014 |
Final |
22.40p |
GBX |
| 06/11/2013 |
02/01/2014 |
Interim |
10.00p |
GBX |
| 08/05/2013 |
01/07/2013 |
Final |
19.40p |
GBX |
| 07/11/2012 |
02/01/2013 |
Final |
8.80p |
GBX |
| 09/05/2012 |
02/07/2012 |
Final |
18.30p |
GBX |
| 09/11/2011 |
03/01/2012 |
Interim |
8.05p |
GBX |
| 11/05/2011 |
01/07/2011 |
Final |
16.20p |
GBX |
| 10/11/2010 |
04/01/2011 |
Interim |
7.15p |
GBX |
| 05/05/2010 |
01/07/2010 |
Final |
14.90p |
GBX |
| 11/11/2009 |
04/01/2010 |
Interim |
6.65p |
GBX |
| 06/05/2009 |
01/07/2009 |
Final |
14.15p |
GBX |
| 12/11/2008 |
02/01/2009 |
Interim |
6.45p |
GBX |
| 07/05/2008 |
03/07/2008 |
Final |
12.90p |
GBX |
| 14/11/2007 |
04/01/2008 |
Interim |
5.80p |
GBX |
| 02/05/2007 |
02/07/2007 |
Final |
11.70p |
GBX |
| 15/11/2006 |
02/01/2007 |
Interim |
5.30p |
GBX |
| 04/05/2005 |
01/07/2005 |
Final |
9.15p |
GBX |
| 17/11/2004 |
04/01/2005 |
Interim |
4.15p |
GBX |
| Year |
Interim |
Final |
Currency |
Total |
Change |
| 2024 |
20.100 |
50.100 |
GBX |
70.200 |
10.370 |
| 2023 |
18.200 |
45.400 |
GBX |
63.600 |
9.460 |
| 2022 |
17.300 |
40.800 |
GBX |
58.100 |
6.600 |
| 2021 |
16.200 |
38.300 |
GBX |
54.500 |
-37.640 |
| 2020 |
|
35.800 |
GBX |
87.400 |
73.060 |
| 2019 |
15.500 |
35.000 |
GBX |
50.500 |
6.990 |
| 2018 |
15.200 |
32.000 |
GBX |
47.200 |
9.760 |
| 2017 |
14.000 |
29.000 |
GBX |
43.000 |
9.550 |
| 2016 |
13.000 |
26.250 |
GBX |
39.250 |
8.270 |
| 2015 |
11.750 |
24.500 |
GBX |
36.250 |
8.530 |
| 2014 |
11.000 |
22.400 |
GBX |
33.400 |
13.600 |
| 2013 |
10.000 |
19.400 |
GBX |
29.400 |
8.480 |
| 2012 |
|
27.100 |
GBX |
27.100 |
11.750 |
| 2011 |
8.050 |
16.200 |
GBX |
24.250 |
9.970 |
| 2010 |
7.150 |
14.900 |
GBX |
22.050 |
6.000 |
| 2009 |
6.650 |
14.150 |
GBX |
20.800 |
7.490 |
| 2008 |
6.450 |
12.900 |
GBX |
19.350 |
10.570 |
| 2007 |
5.800 |
11.700 |
GBX |
17.500 |
230.180 |
| 2006 |
5.300 |
|
GBX |
5.300 |
-42.070 |
| 2005 |
|
9.150 |
GBX |
9.150 |
120.480 |
| 2004 |
4.150 |
|
GBX |
4.150 |
|
Bunzl Dividend Calculator
Bunzl Dividend Growth
| Dividend Growth (1Y) |
0.27%
|
| Dividend CAGR (5Y) |
-3.79%
|
| Years of Growth |
19
|
| Payout Ratio |
52.74%
|
| Buyback Yield |
3.12%
|
| Shareholder Yield |
6.25%
|
| P/E Ratio (TTM) | 16.68 |
|---|
| Forward P/E | 13.17 |
|---|
| P/FCF | 8.8 |
|---|
| Earnings Yield | 6.09% |
|---|
| FCF Yield | 11.37% |
|---|
| ROE | 16.47% |
|---|
| ROCE | 13.27% |
|---|
| Profit Margin | 3.88% |
|---|
| Operating Margin | 6.4% |
|---|
| Gross Margin | 28.85% |
|---|