DCC

Website: DCC
Index: FTSE 100
EPIC: DCC
Supersector: Industrial Goods and Services
Sector: Support Services
Subsector: Industrial Suppliers
Market Cap: £4.93B
Payout Frequency: Semi-Annual

DCC Dividend Analysis and Summary

Key Dividend Details

Coverage and Cash Support

H1 FY26 adjusted EPS (continuing): 120.8p vs interim dividend 69.5p ? interim covered ~1.7x by H1 earnings.
Rolling 12-month free cash flow conversion: 95% (vs 88% prior period), despite H1 seasonality.
Net debt (ex-lease) reduced to £522m (from £1,092m YoY); cash resources (net of overdrafts) £1.4bn.

Outlook and Guidance

Management reiterates expectation of good operating profit growth for FY26 (continuing).
H1 continuing adjusted operating profit: £206.7m (-5.4% YoY); Q2 saw a return to modest growth.

Structural and Capital Allocation Updates (Dividend-Relevant)

Portfolio simplification: Completed sale of DCC Healthcare (Sep-25) and DCC Technology Info Tech UK & Ireland (Nov-25). Intends to have an agreement to sell the remaining Technology business by end-2026.
Capital returns: £100m buyback completed (2.1% of share capital). £600m tender offer expected to complete in Dec-25; remaining £100m planned on receipt of deferred consideration (~2 years). These actions should reduce share count and support DPS accretion.
Distributable reserves: Share premium cancellation approved (Aug-25), increasing distributable reserves and flexibility for future dividends/returns.
Balance sheet: BBB credit ratings reaffirmed; term debt average maturity ~4.4 years.

Brief Assessment for Dividend Investors

Sustainability: The interim increase (+5%) appears well supported by solid H1 cash generation (strong conversion on a 12-month basis), reduced net debt, and liquidity. Despite a statutory loss driven by exceptional charges tied to disposals/impairments, underlying cash and adjusted earnings remain robust.
Growth trajectory: The Group’s long-run DPS growth record and guidance for FY26 continuing profit growth support ongoing dividend progression. Portfolio simplification and the expected share count reduction from the tender offer should be DPS supportive, even if absolute earnings are rebased.
Coverage and policy support: Interim DPS covered ~1.7x by H1 adjusted EPS; historically, full-year coverage on a continuing basis has been comfortable. The share premium cancellation enhances capacity for distributions. Capital allocation balances cash returns with selective energy-focused M&A (c. £50m committed to liquid gas since May-25).

Risks and Flags to Dividend Stability

Operational cyclicality/seasonality: H1 is seasonally lighter; mild weather and energy volume sensitivity can pressure near-term earnings.
Portfolio transition risk: Disposal of Healthcare and Info Tech reduces diversification; execution risk around the planned sale of remaining Technology business and delivery of Energy strategy.
Exceptional items/statutory loss: Significant impairments (not cash) reflect challenges in certain Tech markets; does not directly constrain dividend but signals business-mix change.
Macro/FX and commodity exposure: Earnings sensitive to FX, commodity prices, and demand trends (including EV-led volume shifts in Mobility).
Capital returns vs. flexibility: The £600m tender will reduce cash, though current liquidity and ratings remain supportive.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
22/05/2025	17/07/2025	Final	140.21p	GBX
20/11/2025	12/12/2025	Interim	69.5000p	GBX

Total (Annual Dividends Per Share): 209.71p

Dividend Yield = Annual Dividends Per Share (209.71p) ÷ Share Price (5115p) = 4.1%

Ex Dividend Date	Payment Date	Type	Amount	Currency
20/11/2025	12/12/2025	Interim	69.5000p	GBX
22/05/2025	17/07/2025	Final	140.21p	GBX
21/11/2024	13/12/2024	Interim	66.19p	GBX
23/05/2024	18/07/2024	Final	133.53p	GBX
23/11/2023	15/12/2023	Interim	63.04p	GBX
25/05/2023	20/07/2023	Final	127.17p	GBX
17/11/2022	09/12/2022	Interim	60.04p	GBX
26/05/2022	21/07/2022	Final	119.93p	GBX
18/11/2021	10/12/2021	Interim	55.85p	GBX
27/05/2021	22/07/2021	Final	107.85p	GBX
19/11/2020	09/12/2020	Interim	51.95p	GBX
28/05/2020	23/07/2020	Final	95.79p	GBX
21/11/2019	11/12/2019	Interim	49.48p	GBX
23/05/2019	18/07/2019	Final	93.37p	GBX
22/11/2018	12/12/2018	Interim	44.98p	GBX
24/05/2018	19/07/2018	Final	82.09p	GBX
23/11/2017	11/12/2017	Interim	40.89p	GBX
25/05/2017	20/07/2017	Final	74.63p	GBX
24/11/2016	12/12/2016	Interim	37.17p	GBX
26/05/2016	21/07/2016	Final	64.18p	GBX
19/11/2015	07/12/2015	Interim	33.04p	GBX
28/05/2015	23/07/2015	Final	55.81p	GBX
13/11/2014	28/11/2014	Interim	28.73p	GBX
28/05/2014	24/07/2014	Final	50.73p	GBX
13/11/2013	29/11/2013	Interim	26.12p	GBX
22/05/2013	25/07/2013	Final	56.20¢	USX
14/11/2012	30/11/2012	Interim	29.48¢	USX

Year	Interim	Final	Currency	Total	Change
2024	66.190	133.530	GBX	199.720	4.990
2023	63.040	127.170	GBX	190.210	5.680
2022	60.040	119.930	GBX	179.970	9.930
2021	55.850	107.850	GBX	163.700	10.800
2020	51.950	95.790	GBX	147.740	3.420
2019	49.480	93.370	GBX	142.850	12.410
2018	44.980	82.090	GBX	127.070	9.990
2017	40.890	74.630	GBX	115.520	13.980
2016	37.170	64.180	GBX	101.350	14.060
2015	33.040	55.810	GBX	88.850	11.810
2014	28.730	50.730	GBX	79.460	-3.470
2013	26.120	56.200	USX	82.320	179.240
2012	29.480		USX	29.480

Number of Shares:

Payment	Paid	Amount
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