Dr. Martens

Website: Dr. Martens
Index: FTSE 250
EPIC: DOCS
Supersector: Personal and Household Goods
Sector: Personal Goods
Subsector: Footwear
Market Cap: £682.4M
Payout Frequency: Semi-Annual

Next Dr. Martens Dividend

Dr. Martens next goes ex-dividend on 27/08/2026. This will be the Final dividend for 2026.

The dividend per share amount is 1.7000p (GBP) and the payment date is 07/10/2026.

Key dividend details

Proposed final dividend: 1.70p per share (subject to shareholder approval).
Total FY26 dividend: 2.55p (interim 0.85p + final 1.70p), flat year-on-year.
Ex-dividend date: 27/08/2026 (derived from record date).
Record date: 28/08/2026.
Payment date: 07/10/2026.
Payout/cover:
- 103% of reported earnings (EPS 2.5p) — sub-1x cover.
- ~61% of adjusted earnings (adjusted EPS 4.2p) — ~1.6x cover.
Stated dividend policy: progressive, targeting 25–35% earnings payout.

Dividend sustainability and growth outlook

Maintained, not grown: DPS held at 2.55p despite thin statutory cover. On an adjusted basis coverage is healthier (~1.6x) but still above the 25–35% policy range, implying limited scope for near-term DPS growth until earnings rise.
Earnings momentum improving: FY26 adjusted PBT up 61%, gross margin +120bps to 66.2%, and tighter cost control support medium-term cover improvement if FY27’s “further strong PBT growth” materialises.
Cash support acceptable: Operating cash flow £141.1m; after interest, leases and tax the dividend (~£24.5m) was covered roughly ~2x in FY26. Net bank debt down to £69.7m (total net debt incl. leases £213.5m), leverage 1.4x within the <1.5x target.
Headwinds to watch: FY27 guidance points to higher capex (~£30m) and brand/retail investment, and notes the retail strategy execution will be a short-term revenue headwind. These could constrain free cash flow and the ability to lift DPS near term.

Support from financial performance and capital allocation

Capital allocation framework: target leverage <1.5x, progressive dividend, potential for strategic investments and additional returns when below target leverage. FY26 leverage at 1.4x provides some headroom.
Cash generation: Inventory reduced (weeks cover 32 vs 35), operating cash flow conversion remained strong, though down year-on-year as working capital tailwinds normalised.
FY27 guidance: Net finance costs ~£24m, tax rate ~27%, net debt (incl. leases) around £200m. Delivery against these should underpin dividend maintenance; upgrades likely require further profit growth back within payout policy.

Structural changes and other items relevant to future dividends

Operating model: Reorganisation to a market-led, consumer-first structure with a streamlined Executive Team; expected to improve execution and margins over time.
Retail strategy: Four-tier estate model with investment in ~30 high-potential stores; estate size broadly flat but near-term spend higher (capex uplift), a temporary drag on cash available for distribution.
Financing: Debt facilities extended to Nov 2028; RCF commitments reduced by £26.5m — improves maturity profile and maintains liquidity.
Growth channels: Expanded distribution partnerships (Latin America, UAE, Philippines) on capital-light terms — supportive for medium-term cash generation.
Employee Benefit Trust: Purchase of 10m shares for share plans (dividends waived on these), modestly reducing distributable reserves but not material for DPS capacity.

Risks and flags for dividend stability

Coverage risk: Reported EPS cover <1x and payout above policy range; relies on adjusted earnings and cash generation.
Execution risk: Retail strategy transition expected to be a short-term revenue headwind; EMEA DTC full-price mix remains a priority fix.
Investment and cost headwinds: Higher brand/retail investment and capex in FY27; interest and lease outflows remain significant.
Macro/FX exposure: Geopolitical uncertainty and currency moves could pressure demand and margins.
Exceptional items/tariffs: US IEEPA-related tariff refunds uncertain in timing; further exceptional costs would depress statutory cover.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
05/03/2026	09/04/2026	Interim	0.8500p	GBX
27/08/2026	07/10/2026	Final	1.7000p	GBX

Total (Annual Dividends Per Share): 2.55p

Dividend Yield = Annual Dividends Per Share (2.55p) ÷ Share Price (72.3p) = 3.53%

Ex Dividend Date	Payment Date	Type	Amount	Currency
27/08/2026	07/10/2026	Final	1.7000p	GBX
05/03/2026	09/04/2026	Interim	0.8500p	GBX
28/08/2025	08/10/2025	Final	1.70p	GBX
06/03/2025	08/04/2025	Interim	0.85p	GBX
29/08/2024	01/10/2024	Final	0.99p	GBX
04/01/2024	02/02/2024	Interim	1.56p	GBX
08/06/2023	18/07/2023	Final	4.28p	GBX
05/01/2023	03/02/2023	Interim	1.56p	GBX
09/06/2022	19/07/2022	Final	4.28p	GBX
13/01/2022	04/02/2022	Interim	1.22p	GBX
13/01/2022	04/02/2022	Q2	1.22

Year	Interim	Final	Currency	Total	Change
2024	1.560	0.990	GBX	2.550	-56.330
2023	1.560	4.280	GBX	5.840	-13.090
2022	1.220	4.280		6.720

Number of Shares:

Payment	Paid	Amount
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