Investec

Website: Investec
Index: FTSE 250
EPIC: INVP
Supersector: Financial Services
Sector: Financial Services
Subsector: Investment Services
Market Cap: £4.03B
Payout Frequency: Semi-Annual

Investec Dividend Analysis and Summary

Key dividend details (Ordinary shares – Investec plc, LSE: INVP)

Final dividend declared: 21.0p per share (FY2025: 20.0p)
Total FY2026 dividend: 38.5p per share (FY2025: 36.5p)
Payout ratio: 46.4% (policy: 35%–50%)
Dividend cover (by adjusted EPS 82.9p): ~2.2x
Ex-dividend date (LSE): 20/08/2026
Record date: 21/08/2026
Payment date: 15/09/2026
JSE branch register: ex-div 19/08/2026; gross cash equivalent 472.00 South African cents per share for SA-registered holders

Other dividend announcements (for completeness)

Investec plc and Investec Limited declared several preference share dividends with ex-dates falling on 19–20/08/2026 (jurisdiction dependent). These do not affect the ordinary dividend but are part of total capital distribution.

Dividend sustainability and growth – focused view

Earnings support: Adjusted EPS rose to 82.9p (+4.8% YoY), while total DPS rose to 38.5p (+5.5% YoY). Cover of ~2.2x and payout within policy (46.4%) underpin sustainability.
Balance sheet strength: CET1 ratios at 13.0% (plc) and 13.6% (Limited); strong liquidity (LCR: plc 349%, SA 185.7%). TNAV per share up 9.2%. These metrics comfortably support the dividend.
Earnings quality and risk: CLR of 36bps within the 25–45bps TTC range; cost-to-income stable at 52.9%. NII pressure from lower rates and competition is partly offset by fee income growth and associate (Rathbones) contribution.
Capital allocation discipline: Dividend sits mid-range of policy alongside a completed ~£110m share buyback (May 2025 programme), indicating balanced returns and reinvestment. Management targets increasing capital-light earnings, which is supportive for future cash distributions.
Trajectory: Management guides FY2027 as peak investment year with returns improving from FY2028; medium-term targets of ROE ~16% and ROTE ~18% by FY2030 suggest room for continued, measured DPS growth if execution remains on track.

Structural and policy factors to note

No change to dividend policy (remains 35%–50% of adjusted EPS). Current payout near the upper half suggests incremental, earnings-led DPS growth.
Rathbones/IW&I UK integration now shifts to an assets-under-advice model, potentially enhancing fee income and capital-light growth over time.
UK business progressing toward IRB capital approach (from standardised), which could improve RWA efficiency and future capital headroom.
Basel output floor reduced Investec Limited’s CET1 by ~40bps in FY2026; full phase-in by 2028 may modestly constrain SA headroom but currently well within buffers.
Small SWISS wealth acquisition (Sep 2025) and ongoing dynamic capital management continue; no demergers, share consolidations, or major structural M&A disclosed affecting dividend policy.

Risks and flags relevant to dividend stability

Motor finance redress: FCA scheme remains under legal challenge; Investec carries a £30m provision. Ultimate cost uncertain but currently viewed as adequately provided.
German cum-ex investigations: Ongoing; potential for financial penalties remains uncertain.
Rate/margin pressure: Lower rates and competitive pricing weighed on NII; near-term earnings sensitive to margin dynamics and deposit mix.
Investment spend: FY2027 flagged as peak investment year could temper near-term operating leverage; however, guidance indicates improvement from FY2028.
Macro/credit: Downside-skewed macro scenario weighting and geopolitical risks persist, though current CLR within TTC lends comfort.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
14/08/2025	29/08/2025	Final	20.00p	GBX
27/11/2025	12/12/2025	Interim	26.1986p	GBX
11/12/2025	30/12/2025	Final	17.5000p	GBX

Total (Annual Dividends Per Share): 63.70p

Dividend Yield = Annual Dividends Per Share (63.70p) ÷ Share Price (641p) = 9.94%

Ex Dividend Date	Payment Date	Type	Amount	Currency
11/12/2025	30/12/2025	Final	17.5000p	GBX
27/11/2025	12/12/2025	Interim	26.1986p	GBX
14/08/2025	29/08/2025	Final	20.00p	GBX
12/12/2024	31/12/2024	Interim	16.50p	GBX
22/08/2024	06/09/2024	Final	19.00p	GBX
07/12/2023	22/12/2023	Interim	15.50p	GBX
17/08/2023	04/09/2023	Final	17.50p	GBX
08/12/2022	09/01/2023	Interim	13.50p	GBX
21/07/2022	08/08/2022	Final	14.00p	GBX
09/12/2021	22/12/2021	Interim	11.00p	GBX
22/07/2021	10/08/2021	Final	7.50p	GBX
10/12/2020	04/01/2021	Interim	5.50p	GBX
05/12/2019	18/12/2019	Interim	11.00p	GBX
25/07/2019	12/08/2019	Final	13.50p	GBX
06/12/2018	18/12/2018	Interim	11.00p	GBX
06/12/2018	19/12/2018	Interim	11.00p	GBX
26/07/2018	13/08/2018	Final	13.50p	GBX
07/12/2017	20/12/2017	Interim	10.50p	GBX
27/07/2017	14/08/2017	Final	13.00p	GBX
08/12/2016	21/12/2016	Interim	10.0p	GBX
28/07/2016	10/08/2016	Final	11.50p	GBX
10/12/2015	23/12/2015	Interim	9.50p	GBX
30/07/2015	14/08/2015	Final	11.50p	GBX
11/12/2014	29/12/2014	Interim	8.50p	GBX
30/07/2014	15/08/2014	Final	11.00p	GBX
11/12/2013	27/12/2013	Interim	8.00p	GBX
31/07/2013	12/08/2013	Final	10.00p	GBX
12/12/2012	28/12/2012	Interim	8.00p	GBX

Year	Interim	Final	Currency	Total	Change
2024	16.500	19.000	GBX	35.500	7.570
2023	15.500	17.500	GBX	33.000	20.000
2022	13.500	14.000	GBX	27.500	48.640
2021	11.000	7.500	GBX	18.500	236.360
2020	5.500		GBX	5.500	-77.550
2019	11.000	13.500	GBX	24.500	-30.980
2018	22.000	13.500	GBX	35.500	51.060
2017	10.500	13.000	GBX	23.500	9.300
2016	10.000	11.500	GBX	21.500	2.380
2015	9.500	11.500	GBX	21.000	7.690
2014	8.500	11.000	GBX	19.500	8.330
2013	8.000	10.000	GBX	18.000	125.000
2012	8.000		GBX	8.000

Number of Shares:

Payment	Paid	Amount
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