Pearson

Website: Pearson
Index: FTSE 100
EPIC: PSON
Supersector: Media
Sector: Media
Subsector: Publishing
Market Cap: £6.27B
Payout Frequency: Semi-Annual

Next Pearson Dividend

Pearson next goes ex-dividend on 19/03/2026. This will be the Final dividend for 2026.

The dividend per share amount is 17.4000p (GBP) and the payment date is 08/05/2026.

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.

Pearson Annual Dividend Yield - 2.45%

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 (994.8p) = 2.45%

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

Number of Shares:

Payment	Paid	Amount
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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	6.01%

P/E Ratio (TTM)	19.77
Forward P/E	14.49
P/FCF	10.01
Earnings Yield	5.34%
FCF Yield	9.99%
ROE	8.71%
ROCE	10.01%
Profit Margin	9.37%
Operating Margin	14.82%
Gross Margin	52%