ConvaTec Group

Website: ConvaTec Group
Index: FTSE 100
EPIC: CTEC
Supersector: Health Care
Sector: Health Care Equipment and Services
Subsector: Medical Equipment
Market Cap: £4.56B
Payout Frequency: Semi-Annual

Next ConvaTec Group Dividend

ConvaTec Group next goes ex-dividend on 16/04/2026. This will be the Final dividend for 2026.

The dividend per share amount is 7.24¢ (USD) and the payment date is 28/05/2026.

Headline dividend details

Final dividend declared: 5.367 cents per share (equivalent to 3.973 pence at a fixed rate of $1.351/£1).
Full-year DPS (FY25): 7.244 cents, up 13% year on year (FY24: 6.416 cents).
Payout ratio: 40% of adjusted net profit (within policy range of 35–45%; FY24: 42%).
Currency: Dividend declared in USD; the final dividend will be paid in GBP at the fixed rate noted above.
Approval: Final dividend is subject to AGM approval on 21/05/2026.

Key dates

Cash coverage and balance sheet support

Free cash flow to equity (FY25): $362m.
Cash cost of dividends (FY25): $140m — coverage of roughly 2.6x.
Distributable reserves: $1,811m, providing ample capacity for distributions.
Leverage: 2.0x net debt/adjusted EBITDA (investment-grade across all three major agencies) with significant covenant headroom.
Share count: $300m buyback completed in 2025 (c.95m shares now in treasury) lowers ongoing dividend cash outflow per cent of DPS.

Dividend sustainability and growth outlook

Earnings support: Adjusted EPS up 16% in FY25; guidance for double-digit adjusted EPS growth in FY26 and margin =23%.
Medium term: Organic growth target raised to 6–8% from 2027 with mid-20s% adjusted operating margin ambition — consistent with ongoing DPS growth if the 35–45% payout policy is maintained.
Cash generation: Equity cash conversion around 100%; FY26 capex planned at $200–230m (growth capex $135–165m) but FCF remains strong relative to dividend needs.
Overall: Coverage, policy discipline, and investment-grade balance sheet underpin a sustainable and progressive dividend profile.

Structural or policy developments relevant to dividends

$300m share buyback completed in 2025; supportive of per-share metrics and dividend affordability.
New $500m 10-year senior note issuance in 2025 strengthens liquidity/maturity profile; no change to dividend policy.
Capital allocation priorities reaffirmed: invest for growth, maintain 35–45% payout, targeted M&A, return surplus capital.

Risks and flags to dividend stability

CMS skin substitute pricing: InnovaMatrix revenue expected at c.$20m in FY26 (from $69m) and a $72m impairment taken; management still guides to double-digit EPS growth given diversification.
DMEPOS competitive bidding (US) for Ostomy/Continence: potential 1–2% Group sales impact in the year of implementation (CMS indicates 2028).
FDA Warning Letter to Unomedical (quality systems). No production/marketing restrictions, but it elevates operational/quality risk until resolved.
Higher capex ($200–230m in 2026) and working capital builds could temporarily pressure FCF if execution slips, though current coverage is strong.
FX: Dividend declared in USD; GBP amount fixed for the final dividend but future sterling receipts will vary with FX.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
17/04/2025	29/05/2025	Final	4.59¢	USX
21/08/2025	01/10/2025	Interim	1.88¢	USX

Total (Annual Dividends Per Share): 4.85p (Using exchange rate on 17/03/2026 $ = £0.74946)

Dividend Yield = Annual Dividends Per Share (4.85p) ÷ Share Price (233.8p) = 2.07%

Ex Dividend Date	Payment Date	Type	Amount	Currency
16/04/2026	28/05/2026	Final	7.24¢	USX
21/08/2025	01/10/2025	Interim	1.88¢	USX
17/04/2025	29/05/2025	Final	4.59¢	USX
22/08/2024	04/10/2024	Interim	1.82¢	USX
25/04/2024	23/05/2024	Final	4.46¢	USX
17/08/2023	28/09/2023	Interim	1.77¢	USX
06/04/2023	25/05/2023	Final	4.33¢	USX
25/08/2022	06/10/2022	Interim	1.72¢	USX
31/03/2022	19/05/2022	Final	4.15¢	USX
02/09/2021	14/10/2021	Interim	1.72¢	USX
01/04/2021	13/05/2021	Final	3.98¢	USX
03/09/2020	15/10/2020	Interim	1.72¢	USX
02/04/2020	14/05/2020	Final	3.98¢	USX
05/09/2019	17/10/2019	Interim	1.72¢	USX
04/04/2019	16/05/2019	Final	3.98¢	USX
06/09/2018	12/10/2018	Interim	1.72¢	USX
05/04/2018	17/05/2018	Final	4.30¢	USX
07/09/2017	20/10/2017	Interim	1.40¢	USX

Year	Interim	Final	Currency	Total	Change
2024	1.820	4.460	USX	6.280	2.950
2023	1.770	4.330	USX	6.100	254.650
2022	1.720		USX	1.720	-82.530
2021	1.720	8.130	USX	9.850	72.800
2020	1.720	3.980	USX	5.700	0.000
2019	1.720	3.980	USX	5.700	-5.310
2018	1.720	4.300	USX	6.020	330.000
2017	1.400		USX	1.400

Number of Shares:

Payment	Paid	Amount
Next	–	–
Previous	–	–