Compass Group

Website: Compass Group
Index: FTSE 100
EPIC: CPG
Supersector: Travel and Leisure
Sector: Travel and Leisure
Subsector: Restaurants and Bars
Market Cap: £39.4B
Payout Frequency: Semi-Annual

Compass Group Dividend Analysis and Summary

Key dividend details

Interim dividend per share: 25.5c (USD), up ~13% year-on-year (prior year: 22.6c).
Ex-dividend date: 18/06/2026.
Record date: 19/06/2026.
Payment date: 30/07/2026.
Aggregate interim payout: $433m.
Currency: Declared in USD cents; paid in GBP by default (USD optional). Sterling amount announced 14/07/2026.
Election deadlines: USD currency election by 06/07/2026; DRIP election by 09/07/2026.
Dividend policy: Payout of around 50% of underlying earnings, with the interim at ~one-third of the expected annual dividend.

Dividend sustainability and coverage

Earnings cover: H1 underlying EPS 72.8c; interim dividend of 25.5c implies an H1 payout ratio of ~35% and coverage of ~2.9x (on H1 earnings), consistent with the stated policy that the interim is ~one-third of the annual dividend.
Cash cover: Underlying free cash flow $825m comfortably covers the interim cash outflow of $433m (~1.9x), supported by robust operating cash conversion of 72%.
Balance sheet: Net debt/underlying EBITDA at 1.7x (above the 1–1.5x target) after $2.3bn M&A and $0.8bn capex; investment-grade ratings remain strong (S&P A/A-1; Moody’s A2/P-1).
Outlook support: FY26 guidance raised to underlying operating profit growth “above 11%”, with organic revenue c.7% and ongoing margin progression (H1 underlying margin 7.4%), underpinning dividend capacity.

Dividend growth trajectory

The 13% uplift in the interim dividend signals continued growth momentum, aligned with rising underlying EPS (+~12% YoY at constant currency) and the policy of c.50% payout.
Management confidence (guidance raised), strong new business wins ($4.1bn annualised) and high retention (96%) support a positive medium-term dividend growth outlook.

Capital allocation and structural developments

Policy unchanged: Priorities remain growth investment (capex and bolt-on M&A), maintain IG rating with 1–1.5x leverage target, pay ordinary dividend, and return surplus capital.
Material M&A: Acquisition of Vermaat (Netherlands) (~$1.7bn) and Pro Care Management (Germany) (~$270m) expands European platform and GPO capabilities; integration “progressing well.”
Financing actions: Completed €1.5bn bond issue (maturing 2029/2035) to refinance Vermaat bridge; commercial paper outstanding $1.1bn; liquidity of $3.6bn with undrawn RCF to 2031.
Shareholder returns mix: No current buyback disclosed in the half; FY25 final dividend of $729m paid. Near-term focus appears weighted to growth investment while maintaining the ordinary dividend.

Risks and flags for dividend stability

Leverage above target (1.7x) expected to remain above range in FY26 due to M&A; while still IG-rated, this could moderate additional capital returns (e.g., buybacks) and pace of future dividend growth if sustained.
Higher finance costs from increased net borrowings could weigh on cash flow headroom if rates remain elevated.
Execution risk on recent M&A integrations and delivery of expected synergies; acquisition-related amortisation also reduces statutory profit (non-cash).
Operational and macro risks: Elevated geopolitical/economic volatility, food and labour cost pressures, and cyber/fraud risks noted. These are partially mitigated by contract structures, pricing, scale and sector diversification.
FX translation exposure for GBP-receiving shareholders, as the dividend is declared in USD.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
15/01/2026	26/02/2026	Final	43.30¢	USX
18/06/2026	30/07/2026	Interim	25.50¢	USX

Total (Annual Dividends Per Share): 51.00p (Using exchange rate on 16/07/2026 $ = £0.74134)

Dividend Yield = Annual Dividends Per Share (51.00p) ÷ Share Price (31.59p) = 161.46%

Ex Dividend Date	Payment Date	Type	Amount	Currency
18/06/2026	30/07/2026	Interim	25.50¢	USX
15/01/2026	26/02/2026	Final	43.30¢	USX
19/06/2025	31/07/2025	Interim	22.60¢	USX
16/01/2025	27/02/2025	Final	39.10¢	USX
13/06/2024	25/07/2024	Interim	20.70¢	USX
18/01/2024	29/02/2024	Final	28.10p	GBX
08/06/2023	27/07/2023	Interim	15.00p	GBX
19/01/2023	02/03/2023	Final	22.10p	GBX
09/06/2022	28/07/2022	Interim	9.40p	GBX
20/01/2022	28/02/2022	Final	14.00p	GBX
16/01/2020	24/02/2020	Final	26.90p	GBX
20/06/2019	29/07/2019	Interim	13.10p	GBX
17/01/2019	25/02/2019	Final	25.40p	GBX
21/06/2018	30/07/2018	Interim	12.30p	GBX
18/01/2018	26/02/2018	Final	22.30p	GBX
27/06/2017	17/07/2017	Special	61.00p	GBX
18/05/2017	19/06/2017	Interim	11.20p	GBX
19/01/2017	20/02/2017	Final	21.10p	GBX
23/06/2016	25/07/2016	Interim	10.60p	GBX
21/01/2016	22/02/2016	Final	19.60p	GBX
25/06/2015	27/07/2015	Interim	9.80p	GBX
22/01/2015	23/02/2015	Final	17.70p	GBX
21/05/2014	26/06/2014	Interim	8.80p	GBX
22/01/2014	24/02/2014	Final	16.00p	GBX
26/06/2013	29/07/2013	Interim	8.00p	GBX

Year	Interim	Final	Special	Currency	Total	Change
2024	20.700	39.100		USX	59.800	38.740
2023	15.000	28.100		GBX	43.100	36.820
2022	9.400	22.100		GBX	31.500	125.000
2021		14.000		GBX	14.000	-65.000
2019	13.100	26.900		GBX	40.000	6.100
2018	12.300	25.400		GBX	37.700	-60.100
2017	11.200	22.300	61.000	GBX	94.500	198.100
2016	10.600	21.100		GBX	31.700	7.820
2015	9.800	19.600		GBX	29.400	10.940
2014	8.800	17.700		GBX	26.500	10.410
2013	8.000	16.000		GBX	24.000

Number of Shares:

Payment	Paid	Amount
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