Compass Group
Website:
Compass Group
Index:
FTSE 100
EPIC: CPG
Supersector:
Travel and Leisure
Sector:
Travel and Leisure
Subsector:
Restaurants and Bars
Market Cap:
£36.93B
Payout Frequency: Semi-Annual
Compass Group Dividend Analysis and Summary
Declared dividend and key dates
- Final dividend declared: 43.3c per share (USD) for FY2025
- Total FY2025 dividend: 65.9c per share (up 10.2% YoY; interim was 22.6c)
- Dividend cover: 2.0x underlying earnings; policy remains ~50% payout of underlying EPS
- Ex-dividend date: 15/01/2026
- Record date: 16/01/2026
- Payment date: 26/02/2026 (subject to AGM approval on 05/02/2026)
- Currency: paid in sterling by default; USD election available. Currency election deadline: 02/02/2026; sterling FX rate announced 10/02/2026
- DRIP available; election deadline: 05/02/2026
- Aggregate 2025 dividends paid/declared: $1,112m; proposed final dividend cash cost: $735m
Dividend sustainability and growth
- Growth trajectory: Total DPS up 10.2%, broadly aligned with underlying EPS growth (+11.1% cc to 131.9c), consistent with the ~50% payout policy.
- Earnings and cash support: Underlying operating profit +11.7% (cc) to $3,335m; underlying free cash flow $1,975m with strong conversion (~88%). FY dividend outlay ($1,112m) is covered ~1.8x by underlying FCF.
- Balance sheet and leverage: Net debt/EBITDA at year-end 1.4x (within 1–1.5x target). Guidance notes leverage will be above target in 2026 (peaking at H1) due to M&A, but liquidity and investment-grade ratings remain strong.
- Outlook: 2026 guidance for underlying operating profit growth ~10% (7% organic + ~2% from M&A, ongoing margin gains) supports ongoing dividend progression if execution continues.
Capital allocation and structural considerations
- Policy unchanged: Priorities are organic capex, bolt-on M&A, maintain investment-grade balance sheet, pay ordinary dividend (~50% payout), and return surplus via buybacks/specials when appropriate.
- M&A: Completed $1.3bn net M&A in FY2025 (incl. Dupont Restauration and 4Service). Agreed to acquire Vermaat for ~€1.5bn ($1.8bn) (subject to regulatory approval). Integration of recent deals ahead of schedule.
- Portfolio actions: Exited four countries in FY2025; internal reporting restructured to “International” region. No share consolidation or demerger disclosed.
- Buybacks: Prior $500m buyback completed Dec 2024; no new programme announced. Given elevated 2026 leverage guidance, surplus capital returns may be secondary to M&A near term; ordinary dividend remains prioritized.
Risks and flags to dividend stability
- Leverage peak in 2026: Temporary rise above 1–1.5x target due to M&A (incl. Vermaat) could constrain incremental buybacks or the pace of DPS growth if conditions worsen, though ordinary dividend appears well covered.
- Rising finance costs: Underlying finance costs increased to $315m and are guided to ~$350m in 2026; higher interest burden modestly tightens coverage.
- Execution and integration risk: Ongoing acquisition integration and Vermaat approval/completion are key to delivering guided profit uplift.
- Macro sensitivity: Exposure to wage/food inflation and volume variability; however, pricing mechanisms, scale procurement, and >96% retention mitigate.
- FX: Dividend declared in USD but paid in GBP by default; sterling amount varies with FX set on 10/02/2026.
- AGM approval: Final dividend remains subject to shareholder approval on 05/02/2026.
Read more
Compass Group Annual Dividend Yield - 2.05%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 16/01/2025 |
27/02/2025 |
Final |
39.10¢ |
USX |
| 19/06/2025 |
31/07/2025 |
Interim |
22.60¢ |
USX |
Total (Annual Dividends Per Share):
44.83p
(Using exchange rate on 29/01/2026
$ = £0.72653)
Dividend Yield =
Annual Dividends Per Share (44.83p)
÷ Share Price (2187p)
= 2.05%
Compass Group Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 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 |
|
Compass Group Dividend Calculator
Compass Group Dividend Growth
| Dividend Growth (1Y) |
2.68%
|
| Dividend CAGR (5Y) |
28.42%
|
| Years of Growth |
3
|
| Payout Ratio |
59.8%
|
| Buyback Yield |
0.47%
|
| Shareholder Yield |
2.67%
|
| P/E Ratio (TTM) | 26.75 |
|---|
| Forward P/E | 20.45 |
|---|
| P/FCF | 17.72 |
|---|
| Earnings Yield | 3.74% |
|---|
| FCF Yield | 5.64% |
|---|
| ROE | 25.64% |
|---|
| ROCE | 18.88% |
|---|
| Profit Margin | 4.05% |
|---|
| Operating Margin | 6.58% |
|---|
| Gross Margin | 72.93% |
|---|