Law Debenture Corp

Law Debenture Corp Dividend Analysis and Summary

• Final dividend: 10.375p per ordinary share (subject to AGM approval)
• Total dividend for FY2025: 35.5p per share (up 6.0% YoY)
• Record date: 20/03/2026
• Ex-dividend date: 19/03/2026 (derived as one business day before record date)
• Payment date: 29/04/2026
• Dividend cover: 1.05x (Group revenue EPS 37.26p vs DPS 35.5p)
• Yield: 3.1% based on 10/03/2026 closing price of 1,132p
• Track record: 47 consecutive years of maintained or increased dividends (increases in 46 of those years)

• Coverage and earnings momentum: Cover of 1.05x is positive but thin; however, revenue EPS rose 11.3% YoY to 37.26p, supporting the 6% DPS increase.
• Multiple income engines: Portfolio dividend income increased 16.1% to £40.3m; the IPS business grew net revenue 7.5% and underlying PBIT 6.1%, and has funded ~one-third of dividends over the last decade—an important stabiliser through cycles.
• Balance sheet and costs: Ongoing charges remain low at 0.56%; gearing is a moderate 12% with long-dated debentures at a weighted average cost of 3.96%. New £50m term loan (SONIA+140 bps) and an undrawn £50m RCF add flexibility.
• Growth trajectory: The Board targets mid-to-high single-digit growth in IPS, while portfolio managers retain flexibility (thanks to IPS income) to own lower-yield or no-yield equities that can recycle gains into future income—supportive of continued, steady DPS progression.