Rathbone Brothers

Rathbone Brothers Dividend Analysis and Summary

• Final dividend (FY2025): 68.0p per share (vs 63.0p FY2024, +7.9%), payable 13/05/2026 (subject to AGM approval on 07/05/2026).
• Total FY2025 dividend: 99.0p (vs 93.0p FY2024, +6.5%). Interim dividend of 31.0p was paid on 01/10/2025.
• Record date: 17/04/2026; Ex-dividend date: 16/04/2026 (derived as one business day before the record date).
• Earnings cover: ~1.1x on reported EPS (107.9p / 99.0p); ~1.7x on underlying EPS (170.5p / 99.0p).
• Dividend policy: Board reaffirmed a progressive dividend; 20-year dividend CAGR of 6.2%.
• Additional capital returns: £50m buyback completed on 16 Feb 2026; extension of up to £20m announced (subject to regulatory approval). Share premium reduction (June 2025) increased distributable reserves.

• Coverage and earnings quality: FY2025 dividend is “fully covered.” Underlying EPS of 170.5p provides comfortable headroom over 99.0p DPS, while statutory cover (~1.1x) is thinner but improving as integration costs fade.
• Cash generation and capital: Capital surplus of £197.5m pre-final dividend; CET1 18.0% and total capital ratio 19.4%, with strong liquidity and capital generation supporting ongoing payouts alongside buybacks.
• Profitability trajectory: Underlying PBT +4.6% to £238.1m; underlying margin 27.5% in H2 and guided to 30% by Q4 2026, underpinning dividend progression if execution stays on track.
• Business momentum: FUMA up to £115.6bn (market-led), synergy run-rate £76m achieved; however, modest net outflows in Wealth (-0.8%) and Asset Management (-4.4%) temper organic growth, leaving dividends somewhat exposed to market levels.
• Capital allocation consistency: Progressive dividend plus ongoing buybacks fits the new capital framework and share premium reduction, indicating headroom for continued returns absent adverse conditions.