Howden Joinery Group

Website: Howden Joinery Group
Index: FTSE 100
EPIC: HWDN
Supersector: Industrial Goods and Services
Sector: Support Services
Subsector: Industrial Suppliers
Market Cap: £4.2B
Payout Frequency: Semi-Annual

Howden Joinery Group Dividend Analysis and Summary

Headline dividend details

Proposed final dividend: 16.9p per share (up 3.7% YoY; subject to AGM approval on 07/05/2026)
Total ordinary dividend for FY2025: 21.9p per share (up 3.3% YoY)
Interim dividend (paid 2025): 5.0p per share
Ex-dividend date: 09/04/2026
Record date: 10/04/2026
Payment date: 22/05/2026
Indicative cash cost of proposed final dividend: ~£90.9m
Dividend Reinvestment Plan (DRIP): available via Computershare

Coverage and cash support

Earnings cover: FY2025 EPS 49.2p vs DPS 21.9p ? c.2.2x covered.
Cash cover: Operating cash flow £485.6m; dividends paid in 2025 £116.6m ? c.4x cash cover.
Balance sheet: year-end cash £344.5m, debt-free; £150m undrawn RCF (to Sept 2029).
Capex: £156.5m in 2025 (guidance ~£125m for 2026); ongoing but well within cash generation.
Capital returns: additional £100m share buyback announced for 2026 (after £100.2m buyback in 2025).

Sustainability and growth trajectory

Financial momentum: Revenue +4.1%, PBT +5.1%, EPS +7.9%; gross margin +110bps to 62.7% supports profitability and dividend headroom.
Policy alignment: Board targets an ordinary dividend that grows with long-term prospects and returns surplus cash when year-end cash > £250m — current position supports continued distributions.
Outlook: 2026 UK kitchen market assumed flat; cost headwinds (~£30m) to be offset by productivity savings and pricing discipline; consensus PBT ~£354m implies modest earnings growth, consistent with a progressive dividend.
Share count reduction from buybacks enhances per-share dividend capacity over time.

Structural or policy factors impacting future dividends

Capital allocation unchanged: invest for growth, progressive ordinary dividend, return surplus via buybacks; explicit surplus-cash threshold retained (£250m year-end cash).
New £100m 2026 buyback complements dividend and indicates continued surplus capital.
Operational investments (depot openings, manufacturing upgrades at Runcorn) are sizeable but planned within capex guidance; no M&A, demerger or share consolidation disclosed.
International optimisation (France relocations) ongoing; not a structural change to dividend policy but may cause isolated charges.

Risks and flags relevant to dividend stability

Market risk: UK market expected flat in 2026; sustained weakness could pressure volumes, though Howdens has a track record of market share gains and margin management.
Cost inflation: management guides to ~£30m headwinds in 2026; mitigation relies on efficiency savings and pricing.
Pension: IAS 19 deficit of £7.8m, though funding basis shows a surplus and contributions are currently suspended; triennial valuation (31/03/2026) could alter contributions if conditions worsen.
Lease obligations and ongoing capex: material but supported by strong cash generation and undrawn facilities.
FX sensitivity: euro and USD exposures modest but present in COGS.

Bottom line for dividend investors

The proposed final dividend of 16.9p (ex-div 09/04/2026) is well covered by earnings and cash.
Progressive dividend growth appears sustainable, underpinned by robust profitability, cash generation, and a disciplined capital allocation framework with surplus cash returned via buybacks.
Key watch items: 2026 trading vs flat market assumption, delivery of efficiency savings to offset cost inflation, outcome of the 2026 pension valuation, and execution of capex programs.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
10/04/2025	23/05/2025	Final	16.30p	GBX
16/10/2025	21/11/2025	Interim	5.0000p	GBX
16/10/2025	21/11/2025	Final	5.00p	GBX

Total (Annual Dividends Per Share): 26.30p

Dividend Yield = Annual Dividends Per Share (26.30p) ÷ Share Price (773p) = 3.4%

Ex Dividend Date	Payment Date	Type	Amount	Currency
09/04/2026	22/05/2026	Final	16.9000p	GBX
16/10/2025	21/11/2025	Interim	5.0000p	GBX
16/10/2025	21/11/2025	Final	5.00p	GBX
10/04/2025	23/05/2025	Final	16.30p	GBX
17/10/2024	22/11/2024	Interim	4.90p	GBX
11/04/2024	24/05/2024	Final	16.20p	GBX
12/10/2023	17/11/2023	Interim	4.80p	GBX
06/04/2023	19/05/2023	Final	15.90p	GBX
13/10/2022	18/11/2022	Interim	4.75p	GBX
04/04/2022	20/05/2022	Final	15.20p	GBX
14/10/2021	19/11/2021	Interim	4.30p	GBX
20/05/2021	18/06/2021	Final	9.10p	GBX
20/05/2021	18/06/2021	Special	9.10p	GBX
21/05/2020	19/06/2020	Final	9.10p	GBX
24/10/2019	22/11/2019	Interim	3.90p	GBX
23/05/2019	21/06/2019	Final	7.90p	GBX
25/10/2018	23/11/2018	Interim	3.70p	GBX
24/05/2018	22/06/2018	Final	7.50p	GBX
19/10/2017	17/11/2017	Interim	3.60p	GBX
18/05/2017	16/06/2017	Final	7.40p	GBX
20/10/2016	18/11/2016	Interim	3.30p	GBX
19/05/2016	17/06/2016	Final	7.10p	GBX
22/10/2015	20/11/2015	Interim	2.80p	GBX
21/05/2015	19/06/2015	Final	6.50p	GBX
23/10/2014	21/11/2014	Interim	1.90p	GBX
21/05/2014	20/06/2014	Final	4.50p	GBX
23/10/2013	22/11/2013	Interim	1.00p	GBX
22/05/2013	21/06/2013	Final	2.70p	GBX
31/10/2012	30/11/2012	Interim	0.30p	GBX
23/05/2012	22/06/2012	Final	0.50p	GBX

Year	Interim	Final	Special	Currency	Total	Change
2024	4.900	16.200		GBX	21.100	1.930
2023	4.800	15.900		GBX	20.700	3.750
2022	4.750	15.200		GBX	19.950	-11.330
2021	4.300	9.100	9.100	GBX	22.500	147.250
2020		9.100		GBX	9.100	-22.880
2019	3.900	7.900		GBX	11.800	5.350
2018	3.700	7.500		GBX	11.200	1.810
2017	3.600	7.400		GBX	11.000	5.760
2016	3.300	7.100		GBX	10.400	11.820
2015	2.800	6.500		GBX	9.300	45.310
2014	1.900	4.500		GBX	6.400	72.970
2013	1.000	2.700		GBX	3.700	362.500
2012	0.300	0.500		GBX	0.800

Number of Shares:

Payment	Paid	Amount
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