Dunelm Group
Website:
Dunelm Group
Index:
FTSE 250
EPIC: DNLM
Supersector:
Retail
Sector:
General Retailers
Subsector:
Home Improvement Retailers
Market Cap:
£1.7B
Payout Frequency: Semi-Annual
Dunelm Group Dividend Analysis and Summary
Declared dividends and timetable
- Interim ordinary dividend: 17.0p per share (up 3.0% YoY).
- Special dividend: 25.0p per share (down from 35.0p last year).
- Ex-dividend date: 12/03/2026.
- Record date: 13/03/2026.
- Payment date (both dividends): 08/04/2026.
- Total cash out on 08/04/2026: c.£84.7m (Interim c.£34.3m; Special c.£50.4m).
Context and coverage
- H1 FY26 diluted EPS: 41.7p; coverage of the interim ordinary DPS (~2.45x) looks comfortable.
- Combined April distribution (42.0p) broadly equals H1 diluted EPS; the special is an excess capital return, not covered by “ordinary” payout metrics.
- Free cash flow H1: reported £171.4m, but underlying (ex timing) £78.5m. April dividends are slightly above underlying H1 FCF but should be supported by H2 cash generation.
Financial support and capital allocation
- Guidance: FY26 PBT expected in line with consensus (~£214m), supporting ordinary dividend continuity.
- Gross margin strong at 53.4% (+60bps YoY), aided by FX tailwinds expected to continue into H2.
- Underlying leverage at period end: 0.3x annualised EBITDA (ex timing), within the 0.2x–0.6x target range; management notes leverage was below the 0.2x floor at most period ends in H1—triggering the 25.0p special in line with policy.
- RCF: £250m committed to Sept 2029 (drawn £33m), covenants met comfortably—provides liquidity backstop for dividends.
- Capex guidance: ~£40m for FY26 (moderate), with two store openings deferred to early FY27—near-term cash demands remain manageable.
- Share buyback: up to 1.7m shares for employee schemes only (no cancellation); negligible impact on DPS trajectory.
Assessment: sustainability and growth trajectory
- Ordinary dividend: modest growth (+3%) aligns with policy to “maintain or progress” DPS; H1 EPS cover is strong and FY PBT guidance underpins sustainability.
- Special dividend: continues Dunelm’s practice of returning surplus cash when leverage trends below the target floor; size is variable and has reduced YoY (35p to 25p), reflecting prudence amid softer H1 profit and underlying net debt of 0.3x at period end.
- Cash generation: underlying cash conversion is healthy (underlying FCF/operating profit ~65%), supporting the ordinary payout; specials remain contingent on sustained surplus cash and low leverage.
Structural changes or commentary relevant to future dividends
- No demergers or M&A announced.
- Store rollout timing: two openings likely slip into early FY27; may smooth capex but signals continued reinvestment focus.
- App launch and operational initiatives (self-checkout, marketing optimisation) target productivity—if delivered, they support future dividend headroom.
Risks and flags to dividend stability
- Trading volatility: Q2 softness (third consecutive year) and a still-challenging consumer environment could pressure earnings if it persists.
- Cost and mix pressures: wage inflation and higher digital/logistics costs; margin currently buoyed by FX tailwinds—a reversal would be a headwind.
- Working-capital timing: H1 FCF inflated by a £93m timing benefit; underlying leverage was 0.3x at period end—monitor cash normalisation against future specials.
- Supply chain/furniture availability issues identified in H1 (with recovery plans in place); any slippage could weigh on sales and cash.
- Execution risk around systems and digital initiatives; cyber and IT risks flagged among principal risks.
Read more
Dunelm Group Annual Dividend Yield - 4.9%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 12/03/2026 |
08/04/2026 |
Interim |
17.0000p |
GBX |
| 12/03/2026 |
08/04/2026 |
Special |
25.0000p |
GBX |
Total (Annual Dividends Per Share):
42.00p
Dividend Yield =
Annual Dividends Per Share (42.00p)
÷ Share Price (858p)
= 4.9%
Dunelm Group Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 12/03/2026 |
08/04/2026 |
Interim |
17.0000p |
GBX |
| 12/03/2026 |
08/04/2026 |
Special |
25.0000p |
GBX |
| 30/10/2025 |
25/11/2025 |
Final |
28.00p |
GBX |
| 13/03/2025 |
08/04/2025 |
Interim |
16.50p |
GBX |
| 13/03/2025 |
08/04/2025 |
Special |
35.00p |
GBX |
| 31/10/2024 |
26/11/2024 |
Final |
27.50p |
GBX |
| 14/03/2024 |
09/04/2024 |
1st Interim |
16.00p |
GBX |
| 14/03/2024 |
09/04/2024 |
Special |
35.00p |
GBX |
| 26/10/2023 |
20/11/2023 |
Final |
27.00p |
GBX |
| 16/03/2023 |
11/04/2023 |
Interim |
15.00p |
GBX |
| 16/03/2023 |
11/04/2023 |
Special |
40.0p |
GBX |
| 10/11/2022 |
05/12/2022 |
Final |
26.00p |
GBX |
| 17/03/2022 |
08/04/2022 |
Interim |
14.00p |
GBX |
| 24/02/2022 |
18/03/2022 |
Special |
37.00p |
GBX |
| 28/10/2021 |
19/11/2021 |
Final |
23.00p |
GBX |
| 16/09/2021 |
08/10/2021 |
Special |
65.00p |
GBX |
| 18/03/2021 |
09/04/2021 |
Interim |
12.00p |
GBX |
| 19/03/2020 |
14/04/2020 |
Interim |
8.00p |
GBX |
| 31/10/2019 |
22/11/2019 |
Final |
20.50p |
GBX |
| 19/09/2019 |
11/10/2019 |
Special |
32.00p |
GBX |
| 14/03/2019 |
12/04/2019 |
Interim |
7.50p |
GBX |
| 15/11/2018 |
07/12/2018 |
Final |
19.50p |
GBX |
| 22/03/2018 |
13/04/2018 |
Interim |
7.00p |
GBX |
| 02/11/2017 |
24/11/2017 |
Final |
19.50p |
GBX |
| 23/03/2017 |
13/04/2017 |
Interim |
6.50p |
GBX |
| 03/11/2016 |
25/11/2016 |
Final |
19.10p |
GBX |
| 03/03/2016 |
24/03/2016 |
Interim |
6.00p |
GBX |
| 03/03/2016 |
24/03/2016 |
Special |
31.50p |
GBX |
| 15/10/2015 |
27/11/2015 |
Final |
16.00p |
GBX |
| 12/03/2015 |
10/04/2015 |
Interim |
5.50p |
GBX |
| 27/11/2014 |
19/12/2014 |
Final |
15.00p |
GBX |
| 19/03/2014 |
11/04/2014 |
Interim |
5.00p |
GBX |
| 27/11/2013 |
20/12/2013 |
Final |
11.50p |
GBX |
| 18/09/2013 |
11/10/2013 |
Special |
25.00p |
GBX |
| 20/03/2013 |
12/04/2013 |
Interim |
4.50p |
GBX |
| Year |
Interim |
Final |
Special |
Currency |
Total |
Change |
| 2024 |
|
27.500 |
35.000 |
GBX |
78.500 |
-4.260 |
| 2023 |
15.000 |
27.000 |
40.000 |
GBX |
82.000 |
6.490 |
| 2022 |
14.000 |
26.000 |
37.000 |
GBX |
77.000 |
-23.000 |
| 2021 |
12.000 |
23.000 |
65.000 |
GBX |
100.000 |
1,150.000 |
| 2020 |
8.000 |
|
|
GBX |
8.000 |
-86.660 |
| 2019 |
7.500 |
20.500 |
32.000 |
GBX |
60.000 |
126.410 |
| 2018 |
7.000 |
19.500 |
|
GBX |
26.500 |
1.920 |
| 2017 |
6.500 |
19.500 |
|
GBX |
26.000 |
-54.060 |
| 2016 |
6.000 |
19.100 |
31.500 |
GBX |
56.600 |
163.250 |
| 2015 |
5.500 |
16.000 |
|
GBX |
21.500 |
7.500 |
| 2014 |
5.000 |
15.000 |
|
GBX |
20.000 |
-51.210 |
| 2013 |
4.500 |
11.500 |
25.000 |
GBX |
41.000 |
|
Dunelm Group Dividend Calculator
Dunelm Group Dividend Growth
| Dividend Growth (1Y) |
-11.39%
|
| Dividend CAGR (5Y) |
42.29%
|
| Years of Growth |
1
|
| Payout Ratio |
60%
|
| Buyback Yield |
0.1%
|
| Shareholder Yield |
8.35%
|
| P/E Ratio (TTM) | 11.5 |
|---|
| Forward P/E | 10.58 |
|---|
| P/FCF | 8.31 |
|---|
| Earnings Yield | 8.79% |
|---|
| FCF Yield | 12.03% |
|---|
| ROE | 86.09% |
|---|
| ROCE | 53.41% |
|---|
| Profit Margin | 8.29% |
|---|
| Operating Margin | 11.83% |
|---|
| Gross Margin | 52.73% |
|---|