DCC

Website: DCC
Index: FTSE 100
EPIC: DCC
Supersector: Industrial Goods and Services
Sector: Support Services
Subsector: Industrial Suppliers
Market Cap: £5.18B
Payout Frequency: Semi-Annual

DCC Dividend Analysis and Summary

Declared Dividend and Key Dates

Final dividend: 147.22p per share (proposed), up 5.0% year-on-year
Total FY26 dividend: 216.72p per share (+5.0% vs FY25)
Ex-dividend date: 28/05/2026 (derived from record date)
Record date: 29/05/2026
Payment date: 23/07/2026
Dividend cover: 2.0x (vs continuing adjusted EPS of 438.1p), implying a c. 50% payout ratio
Proposed final dividend cash cost: £125.8m (reflecting a reduced share count after buybacks)
Track record: 32 years of unbroken dividend growth; historical CAGR ~12.7%

Support from Earnings, Cash Flow and Balance Sheet

Earnings momentum: Adjusted continuing EPS up +9.9%; adjusted continuing operating profit up +3.6%.
Cash generation: Free cash flow £689.6m with exceptional 108% FCF conversion; FY26 dividends paid (£206.6m) were comfortably covered by FCF.
Leverage and coverage: Net debt (incl. leases) £1.08bn (down y/y); interest cover 9.8x; ROCE 16.8%; investment-grade ratings (Fitch/S&P BBB).
Lower share count: ~13.9% of shares repurchased in FY25/26 via buyback and tender, reducing future dividend cash outflow while lifting EPS.

Outlook and Sustainability

Sustainability: The dividend is well supported by high cash conversion, strong coverage (2.0x), and disciplined capex roughly in line with depreciation.
Growth trajectory: Board proposes another 5% increase; management targets continued growth as the Group focuses on DCC Energy. Long-term ambition to grow Energy operating profit to £830m by 2030 provides scope for sustained DPS progression if execution and M&A deliver.
Cash discipline: Moderate committed M&A spend (~£112m) and ongoing portfolio simplification suggest capacity to maintain progressive dividends alongside selective development.

Structural Changes and Capital Allocation

Portfolio simplification: Disposal of DCC Healthcare (completed Sep-2025) and DCC Technology’s Info Tech business (Nov-2025). Sale process for the remaining Technology business (rebranded “Nexora”) is underway with an aim to agree a sale by end-2026; proceeds to be reviewed under capital allocation policy.
Capital returns: £700m returned in FY25/26 (on-market buyback and tender). A further £100m return is expected on receipt of deferred consideration (anticipated Autumn 2027).
Name change: Proposed change to DCC Energy plc post-AGM on 16/07/2026, reflecting the strategic focus on Energy.
Distributable reserves: Share premium cancellation (Aug-2025) increased profits available for distribution, supporting ongoing dividends and buybacks.

Risks and Flags

Working capital tailwind may reverse: FY26 FCF benefited from a negative working capital model amid higher commodity prices; normalization could reduce cash conversion.
Energy Services weakness: Margin compression, regulatory changes, and softer demand in UK & Ireland weighed on results; recovery path remains uncertain.
M&A execution/regulatory risk: Pending approval and integration risks for Central European LPG acquisitions.
Commodity and macro volatility: Earnings in Energy remain sensitive to market conditions, weather, and geopolitical events.
Corporate activity: Indicative approach from ECP/KKR (rejected) highlights potential for future corporate actions that could alter dividend policy.

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 (5890p) = 3.56%

Ex Dividend Date	Payment Date	Type	Amount	Currency
28/05/2026	23/07/2026	Final	147.2200p	GBX
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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