Pearson
Website:
Pearson
Index:
FTSE 100
EPIC: PSON
Supersector:
Media
Sector:
Media
Subsector:
Publishing
Market Cap:
£6.21B
Payout Frequency: Semi-Annual
Pearson Dividend Analysis and Summary
Key Dividend Details
- Dividend type: Final
- Amount: 17.4p per share
- FY25 total dividend: 25.2p (up 5% year-on-year)
- Ex-dividend date: 19/03/2026 (derived from record date)
- Record date: 20/03/2026
- Payment date: 08/05/2026
- Estimated cash outflow for final dividend: ~£109m
- Dividend cover: ~2.6x by adjusted EPS (25.2p vs 64.5p), payout ratio ~39%
- Currency: GBP
- DRIP: Available; election deadline 16/04/2026
How Well Is the Dividend Supported?
- Earnings and cash support: Adjusted EPS 64.5p (+4%); free cash flow £527m (+8%). Free cash flow conversion 125% in 2025 including the £97m State Aid tax refund; excluding this, conversion was a strong ~98% (top end of guidance).
- Cash generation quality: Operating cash conversion 93% despite higher working capital from strong Q4 sales.
- Balance sheet: Net debt £1.1bn, net debt/adjusted EBITDA 1.3x; liquidity ~£1.3bn and a new $800m RCF add flexibility.
- Outlook/guidance: 2026 adjusted operating profit guidance £640m–£685m; free cash flow conversion guided at 90%–100%, consistent with sustaining the dividend.
Sustainability and Growth Trajectory
- Policy execution: A further 5% uplift in the full-year dividend aligns with a progressive approach, underpinned by robust cash conversion.
- Coverage: At ~2.6x by adjusted EPS and ~39% payout, the dividend remains conservatively covered.
- Capital allocation: The completed £350m 2025 buyback and the new £350m buyback (Jan 2026) signal confidence and should reduce the ongoing cash cost of dividends via a lower share count.
- Earnings momentum: Mid-single digit sales growth and margin progress (AOP margin 17.2%) support ongoing dividend growth, while platform convergence is expected to add c.£15m p.a. to adjusted operating profit in HE over six years.
Structural or Policy Changes Affecting Future Dividends
- Share buybacks: £350m completed in 2025 (c.5% share count reduction); a further £350m buyback commenced in Jan 2026 (c.7m shares repurchased to 25 Feb 2026). Positive for per-share metrics; increases cash outflows near term.
- Management change: CFO transition (new CFO joins 30/03/2026; assumes role 08/05/2026). No stated change to dividend policy, but monitoring warranted during transition.
- M&A: Acquisition of eDynamic Learning for £168m (modest scale); no immediate dividend policy implications.
- Operating segment evolution (Workforce Skills to Enterprise Learning & Skills) is strategic, with no direct dividend policy change.
Risks and Flags Relevant to Dividend Stability
- Higher finance costs: 2026 adjusted net finance costs guided at ~£80m (partly buyback-related), a drag on earnings.
- Leverage trend: Net debt rose to £1.1bn; continued buybacks and M&A require sustained cash generation to avoid upward leverage drift.
- Operational headwinds: Loss of the New Jersey assessment contract and PDRI headwinds imply a softer Q1 2026 before growth resumes; monitor execution.
- FX sensitivity: Every 1c move in £:$ impacts adjusted operating profit by ~£5m; USD weakness could pressure reported results.
- One-offs in cash flow: 2025 FCF benefited from a £97m State Aid tax repayment; underlying conversion remains healthy, but the one-off boost won’t repeat.
- Tax uncertainty (Brazil): Potential exposure disclosed; management assesses low likelihood of adverse outcome; limited near-term cash impact expected.
Read more
Pearson Annual Dividend Yield - 2.52%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 20/03/2025 |
09/05/2025 |
Final |
16.60p |
GBX |
| 14/08/2025 |
15/09/2025 |
Interim |
7.80p |
GBX |
Total (Annual Dividends Per Share):
24.40p
Dividend Yield =
Annual Dividends Per Share (24.40p)
÷ Share Price (966.4p)
= 2.52%
Pearson Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 19/03/2026 |
08/05/2026 |
Final |
17.4000p |
GBX |
| 14/08/2025 |
15/09/2025 |
Interim |
7.80p |
GBX |
| 20/03/2025 |
09/05/2025 |
Final |
16.60p |
GBX |
| 08/08/2024 |
16/09/2024 |
Interim |
7.40p |
GBX |
| 21/03/2024 |
03/05/2024 |
Final |
15.70p |
GBX |
| 10/08/2023 |
18/09/2023 |
Interim |
7.00p |
GBX |
| 23/03/2023 |
05/05/2023 |
Final |
14.90p |
GBX |
| 11/08/2022 |
20/09/2022 |
Interim |
6.60p |
GBX |
| 24/03/2022 |
06/05/2022 |
Final |
14.20p |
GBX |
| 12/08/2021 |
20/09/2021 |
Interim |
6.30p |
GBX |
| 25/03/2021 |
07/05/2021 |
Final |
13.50p |
GBX |
| 13/08/2020 |
21/09/2020 |
Interim |
6.00p |
GBX |
| 26/03/2020 |
07/05/2020 |
Final |
13.50p |
GBX |
| 15/08/2019 |
13/09/2019 |
Interim |
6.00p |
GBX |
| 04/04/2019 |
10/05/2019 |
Final |
13.00p |
GBX |
| 16/08/2018 |
14/09/2018 |
Interim |
5.50p |
GBX |
| 05/04/2018 |
11/05/2018 |
Final |
12.00p |
GBX |
| 17/08/2017 |
15/09/2017 |
Interim |
5.00p |
GBX |
| 06/04/2017 |
12/05/2017 |
Final |
34.00p |
GBX |
| 18/08/2016 |
16/09/2016 |
Interim |
18.00p |
GBX |
| 07/04/2016 |
06/05/2016 |
Final |
34.00p |
GBX |
| 13/08/2015 |
11/09/2015 |
Interim |
18.00p |
GBX |
| 02/04/2015 |
01/05/2015 |
Final |
34.00p |
GBX |
| 13/08/2014 |
12/09/2014 |
Interim |
17.00p |
GBX |
| 02/04/2014 |
02/05/2014 |
Final |
32.00p |
GBX |
| 14/08/2013 |
13/09/2013 |
Interim |
16.00p |
GBX |
| 03/04/2013 |
03/05/2013 |
Final |
30.00p |
GBX |
| 15/08/2012 |
14/09/2012 |
Interim |
15.00p |
GBX |
| 04/04/2012 |
04/05/2012 |
Final |
28.00p |
GBX |
| 17/08/2011 |
16/09/2011 |
Interim |
14.00p |
GBX |
| 06/04/2011 |
06/05/2011 |
Final |
25.70p |
GBX |
| 18/08/2010 |
17/09/2010 |
Interim |
13.00p |
GBX |
| 07/04/2010 |
07/05/2010 |
Final |
23.30p |
GBX |
| 19/08/2009 |
18/09/2009 |
Interim |
12.20p |
GBX |
| 08/04/2009 |
08/05/2009 |
Final |
22.00p |
GBX |
| 20/08/2008 |
19/09/2008 |
Interim |
11.80p |
GBX |
| 09/04/2008 |
09/05/2008 |
Final |
20.50p |
GBX |
| 22/08/2007 |
21/09/2007 |
Interim |
11.10p |
GBX |
| 04/04/2007 |
11/05/2007 |
Final |
18.80p |
GBX |
| 24/08/2005 |
23/09/2005 |
Interim |
10.00p |
GBX |
| 06/04/2005 |
06/05/2005 |
Final |
15.70p |
GBX |
| 25/08/2004 |
24/09/2004 |
Interim |
9.70p |
GBX |
| Year |
Interim |
Final |
Currency |
Total |
Change |
| 2024 |
7.400 |
16.600 |
GBX |
24.000 |
5.720 |
| 2023 |
7.000 |
15.700 |
GBX |
22.700 |
5.580 |
| 2022 |
6.600 |
14.900 |
GBX |
21.500 |
4.870 |
| 2021 |
6.300 |
14.200 |
GBX |
20.500 |
5.120 |
| 2020 |
6.000 |
13.500 |
GBX |
19.500 |
-40.000 |
| 2019 |
6.000 |
26.500 |
GBX |
32.500 |
85.710 |
| 2018 |
5.500 |
12.000 |
GBX |
17.500 |
-55.120 |
| 2017 |
5.000 |
34.000 |
GBX |
39.000 |
-25.000 |
| 2016 |
18.000 |
34.000 |
GBX |
52.000 |
0.000 |
| 2015 |
18.000 |
34.000 |
GBX |
52.000 |
6.120 |
| 2014 |
17.000 |
32.000 |
GBX |
49.000 |
6.520 |
| 2013 |
16.000 |
30.000 |
GBX |
46.000 |
6.970 |
| 2012 |
15.000 |
28.000 |
GBX |
43.000 |
8.310 |
| 2011 |
14.000 |
25.700 |
GBX |
39.700 |
9.360 |
| 2010 |
13.000 |
23.300 |
GBX |
36.300 |
6.140 |
| 2009 |
12.200 |
22.000 |
GBX |
34.200 |
5.880 |
| 2008 |
11.800 |
20.500 |
GBX |
32.300 |
8.020 |
| 2007 |
11.100 |
18.800 |
GBX |
29.900 |
16.340 |
| 2005 |
10.000 |
15.700 |
GBX |
25.700 |
164.940 |
| 2004 |
9.700 |
|
GBX |
9.700 |
|
Pearson Dividend Calculator
Pearson Dividend Growth
| Dividend Growth (1Y) |
5%
|
| Dividend CAGR (5Y) |
5.26%
|
| Years of Growth |
7
|
| Payout Ratio |
47.76%
|
| Buyback Yield |
3.47%
|
| Shareholder Yield |
5.98%
|
| P/E Ratio (TTM) | 19.62 |
|---|
| Forward P/E | 14.38 |
|---|
| P/FCF | 9.9 |
|---|
| Earnings Yield | 5.4% |
|---|
| FCF Yield | 10.1% |
|---|
| ROE | 8.71% |
|---|
| ROCE | 9.53% |
|---|
| Profit Margin | 9.37% |
|---|
| Operating Margin | 14.12% |
|---|
| Gross Margin | 52% |
|---|