Caledonia Investments
Website:
Caledonia Investments
Index:
FTSE 250
EPIC: CLDN
Supersector:
Financial Services
Sector:
Equity Investment Instruments
Subsector:
Equity Investment Instruments
Market Cap:
£1.97B
Payout Frequency: Semi-Annual
Caledonia Investments Dividend Analysis and Summary
Quick Dividend Summary
- Dividend declared: Final dividend of 4.00p per share (FY26 total: 7.68p, up 4.4% y/y).
- Ex-dividend date: 02/07/2026.
- Record date: 03/07/2026.
- Payment date: 06/08/2026 (subject to AGM approval on 15/07/2026).
- Policy: Progressive, now at 59 consecutive years of annual dividend increases.
- Cover: FY26 dividends of £39.9m covered by net revenue profit of £40.4m (~1.0x cover).
- Interim dividend: 3.68p paid on 08/01/2026; interim re-profiled to 50% of prior year total to smooth income.
- DRIP: Dividend reinvestment plan election deadline 17/07/2026.
- Yield: Not disclosed in the RNS (share price not provided).
Context and Financial Support
- Revenue engine: Total net investment income rose to £64.7m (FY25: £53.6m); net revenue profit £40.4m fully covers the FY26 dividend.
- Private Capital income: Benefited from a £24.5m dividend from AIR-serv Europe (partly capital-accounted), highlighting some reliance on lumpy/private sources.
- Liquidity: Net cash £90m; undrawn RCF £325m (extended on same terms on 13/05/2026); total liquidity £415m.
- Forthcoming proceeds: Expected c.£290m cash inflow from the agreed sale of Stonehage Fleming (completion expected mid-2026).
- Capital returns: Share buybacks of £34.6m in FY26 (9.47m shares) at an average 34.7% discount, accretive to NAV per share and reducing future dividend cash outflow.
- Performance backdrop: NAV total return 5.4%; portfolio return 6.1% despite late-year volatility; diluted NAV per share 567.6p.
Dividend Sustainability and Outlook
- Coverage: Current year cover is thin (~1.0x) but adequate; management states FY26 dividend is “fully covered.”
- Income trajectory: Board expects a gradual reduction in investment income as focus remains on total returns; over time, fund distributions are expected to play a larger role in dividend cover. Near-term, fund distributions are described as subdued.
- Support factors: Strong balance sheet and liquidity; potential reinforcement from Stonehage Fleming sale proceeds; ongoing buybacks lower the share count and future dividend cash cost.
- Growth stance: Progressive policy targeting increases at least in line with inflation; given slim cover and income mix shift, medium-term growth likely steady but measured, contingent on portfolio cash generation (particularly from Funds and Private Capital).
Structural/Policy Changes Relevant to Dividends
- Agreed disposal: Sale of Stonehage Fleming (expected proceeds c.£290m)—boosts liquidity and capital allocation flexibility post-completion.
- Dividend re-profiling: Interim set to 50% of prior year total to smooth income profile for shareholders.
- Share split: 10:1 share sub-division on 25/07/2025 (improves share accessibility and ease of dividend reinvestment).
- Share buybacks: Ongoing programme; FY26 buybacks were NAV-accretive and reduce future dividend cash outlay; board references an uncapped Rule 9 waiver enabling continued buybacks.
- RCF extension: £325m facility extended on same terms (augments near-term dividend paying capacity and investment flexibility).
- Governance: Chair transition to Will Wyatt post-AGM; not a direct dividend change but continuity of strategy implied.
Risks and Flags
- Income headwinds: Management guides to a gradual reduction in investment income; near-term fund distributions remain moderated—keeps cover tight.
- Concentration of income: Notable contributions from Private Capital (e.g., AIR-serv dividend) can be episodic; reliance on lumpy cash flows raises variability risk.
- Market/FX volatility: 62% of NAV non-sterling and unhedged; equity market swings and FX can affect both income and reported performance.
- Capital commitments: Uncalled commitments of £346.1m could absorb liquidity if drawdowns accelerate, competing with buybacks/dividends (mitigated by strong facility and liquid assets).
- Discount and buyback trade-off: Persistent wide discount prompts buybacks, which are supportive but compete with other capital uses; buybacks increase the Cayzer Concert Party stake (now 51.05%), a governance consideration though long-term oriented.
Read more
Caledonia Investments Annual Dividend Yield - 1.99%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 04/12/2025 |
08/01/2026 |
Interim |
3.6800p |
GBX |
| 02/07/2026 |
06/08/2026 |
Final |
4.0000p |
GBX |
Total (Annual Dividends Per Share):
7.68p
Dividend Yield =
Annual Dividends Per Share (7.68p)
÷ Share Price (385p)
= 1.99%
Caledonia Investments Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 02/07/2026 |
06/08/2026 |
Final |
4.0000p |
GBX |
| 04/12/2025 |
08/01/2026 |
Interim |
3.6800p |
GBX |
| 26/06/2025 |
07/08/2025 |
Final |
53.91p |
GBX |
| 05/12/2024 |
09/01/2025 |
Interim |
19.69p |
GBX |
| 27/06/2024 |
01/08/2024 |
Final |
51.47p |
GBX |
| 30/11/2023 |
04/01/2024 |
Interim |
18.93p |
GBX |
| 29/06/2023 |
03/08/2023 |
Final |
49.20p |
GBX |
| 01/12/2022 |
05/01/2023 |
Interim |
18.20p |
GBX |
| 30/06/2022 |
04/08/2022 |
Special |
175.00p |
GBX |
| 30/06/2022 |
04/08/2022 |
Final |
47.30p |
GBX |
| 02/12/2021 |
06/01/2022 |
Interim |
17.50p |
GBX |
| 01/07/2021 |
05/08/2021 |
Final |
45.90p |
GBX |
| 03/12/2020 |
07/01/2021 |
Interim |
17.00p |
GBX |
| 25/06/2020 |
06/08/2020 |
Final |
44.50p |
GBX |
| 05/12/2019 |
09/01/2020 |
Interim |
16.60p |
GBX |
| 27/06/2019 |
08/08/2019 |
Final |
43.20p |
GBX |
| 29/11/2018 |
10/01/2019 |
Interim |
16.10p |
GBX |
| 28/06/2018 |
09/08/2018 |
Final |
41.50p |
GBX |
| 30/11/2017 |
11/01/2018 |
Interim |
15.50p |
GBX |
| 06/07/2017 |
03/08/2017 |
Final |
39.90p |
GBX |
| 06/07/2017 |
03/08/2017 |
Special |
100p |
GBX |
| 01/12/2016 |
05/01/2017 |
Interim |
14.90p |
GBX |
| 03/03/2016 |
01/04/2016 |
Final |
38.30p |
GBX |
| 03/12/2015 |
07/01/2016 |
Interim |
14.30p |
GBX |
| 09/07/2015 |
06/08/2015 |
Final |
36.80p |
GBX |
| 11/12/2014 |
08/01/2015 |
Interim |
13.80p |
GBX |
| 09/07/2014 |
07/08/2014 |
Final |
35.70p |
GBX |
| 11/12/2013 |
09/01/2014 |
Interim |
13.40p |
GBX |
| 10/07/2013 |
08/08/2013 |
Final |
34.30p |
GBX |
| 12/12/2012 |
10/01/2013 |
Interim |
12.90p |
GBX |
| Year |
Interim |
Final |
Special |
Currency |
Total |
Change |
| 2024 |
19.690 |
51.470 |
|
GBX |
71.160 |
4.440 |
| 2023 |
18.930 |
49.200 |
|
GBX |
68.130 |
-71.670 |
| 2022 |
18.200 |
47.300 |
175.000 |
GBX |
240.500 |
279.330 |
| 2021 |
17.500 |
45.900 |
|
GBX |
63.400 |
3.080 |
| 2020 |
17.000 |
44.500 |
|
GBX |
61.500 |
2.840 |
| 2019 |
16.600 |
43.200 |
|
GBX |
59.800 |
3.810 |
| 2018 |
16.100 |
41.500 |
|
GBX |
57.600 |
-62.930 |
| 2017 |
15.500 |
39.900 |
100.000 |
GBX |
155.400 |
942.950 |
| 2016 |
14.900 |
|
|
GBX |
14.900 |
-83.330 |
| 2015 |
14.300 |
75.100 |
|
GBX |
89.400 |
80.600 |
| 2014 |
13.800 |
35.700 |
|
GBX |
49.500 |
3.770 |
| 2013 |
13.400 |
34.300 |
|
GBX |
47.700 |
269.760 |
| 2012 |
12.900 |
|
|
GBX |
12.900 |
|
Caledonia Investments Dividend Calculator
Caledonia Investments Dividend Growth
| Dividend Growth (1Y) |
4.4%
|
| Dividend CAGR (5Y) |
4.08%
|
| Years of Growth |
2
|
| Payout Ratio |
35.06%
|
| Buyback Yield |
2.84%
|
| Shareholder Yield |
4.84%
|
| P/E Ratio (TTM) | 15.12 |
|---|
| Forward P/E | – |
|---|
| P/FCF | 52.8 |
|---|
| Earnings Yield | 6.87% |
|---|
| FCF Yield | 1.89% |
|---|
| ROE | 4.57% |
|---|
| ROCE | 4.54% |
|---|
| Profit Margin | 82.49% |
|---|
| Operating Margin | 82.67% |
|---|
| Gross Margin | 100% |
|---|