ConvaTec Group
Website:
ConvaTec Group
Index:
FTSE 100
EPIC: CTEC
Supersector:
Health Care
Sector:
Health Care Equipment and Services
Subsector:
Medical Equipment
Market Cap:
£4.12B
Payout Frequency: Semi-Annual
ConvaTec Group Dividend Analysis and Summary
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
- Ex-dividend date: 16/04/2026
- Record date: 17/04/2026
- Payment date: 28/05/2026
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.
Read more
ConvaTec Group Annual Dividend Yield - 2.27%
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):
4.76p
(Using exchange rate on 30/04/2026
$ = £0.73627)
Dividend Yield =
Annual Dividends Per Share (4.76p)
÷ Share Price (210p)
= 2.27%
ConvaTec Group Dividend History
| 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 |
|
ConvaTec Group Dividend Calculator
ConvaTec Group Dividend Growth
| Dividend Growth (1Y) |
6.15%
|
| Dividend CAGR (5Y) |
5.29%
|
| Years of Growth |
1
|
| Payout Ratio |
84.07%
|
| Buyback Yield |
1.09%
|
| Shareholder Yield |
3.56%
|
| P/E Ratio (TTM) | 33.05 |
|---|
| Forward P/E | 14.35 |
|---|
| P/FCF | 16.58 |
|---|
| Earnings Yield | 3.15% |
|---|
| FCF Yield | 6.03% |
|---|
| ROE | 10.91% |
|---|
| ROCE | 12.95% |
|---|
| Profit Margin | 7.18% |
|---|
| Operating Margin | 16.81% |
|---|
| Gross Margin | 56.25% |
|---|