Rentokil Initial
Website:
Rentokil Initial
Index:
FTSE 100
EPIC: RTO
Supersector:
Industrial Goods and Services
Sector:
Support Services
Subsector:
Business Support Services
Market Cap:
£12.63B
Payout Frequency: -
Rentokil Initial Dividend Analysis and Summary
Headline Dividend Details
- Final dividend (FY25): 8.24 cents per share (USD), up 4.6% year-on-year.
- Total FY25 dividend: 12.39 cents per share, up 3.0% (progressive policy maintained).
- Ex-dividend date: 09/04/2026 (derived from record date).
- Record date: 10/04/2026; Payment date: 18/05/2026.
- Currency: Dividend first determined in USD; sterling amount to be announced on 23/04/2026 using the average closing spot rates from 20–22 April.
- DRIP election deadline: 24/04/2026.
Coverage and Sustainability
- Earnings cover: Adjusted EPS 25.91c vs DPS 12.39c ? c.2.1x covered on an adjusted basis. (On statutory total EPS of 18.62c, cover is c.1.5x.)
- Cash cover: FY25 Free Cash Flow $615m vs total FY25 DPS cash cost c.$314m ? c.2.0x covered; strong FCF conversion at 98%.
- Balance sheet: Net debt/EBITDA reduced to 2.6x (from 2.9x); liquidity headroom $2.6bn. Near-term refinancing risk reduced by €500m bond redemption (Mar-26).
- Outlook support: Guidance implies continued cost discipline (NA transformation savings targeting $100m by 2027) and margins improving; FY26 results expected “in line” with market expectations.
Dividend Growth and Policy
- Trajectory: FY25 DPS up 3.0%; final up 4.6% — consistent with a progressive dividend policy.
- Earnings/FCF alignment: Adjusted operating profit up 5.4%; strong cash generation and lower leverage underpin capacity for modest DPS growth.
- Currency note: USD-declared dividend reduces FX volatility at source; UK holders should note GBP translation timing on 23/04/2026.
Structural/Corporate Actions Relevant to Dividends
- Portfolio: Completed disposal of France Workwear (Sep-25) with net cash proceeds of c.$397m — supportive for balance sheet and capital flexibility.
- Financing: Redemption of €500m notes due May-26 (redeemed 2 Mar 2026) lowers near-term refinancing risk.
- Integration strategy: Streamlined North America approach (retain c.30 brands; expand to c.800 branches; revised systems/BI tooling) aimed at improving growth and margins by 2027.
- Capital allocation: Ongoing bolt-on M&A with anticipated ~$200m spend in 2026; one-off NA transformation costs guided at ~$70m (P&L) and $80–85m cash in FY26.
- Leadership: New CEO effective 16/03/2026; continuity of strategy and progressive dividend messaging maintained.
Risks and Flags to Dividend Stability
- Termite claims: Provision increased by $201m (closing $384m); cash settlements were $95m in 2025 with a similar outflow expected in 2026 — a continuing cash drag to monitor.
- Transformation execution: Ongoing North America transformation and systems approach carries operational risk; further one-off costs in 2026 could temporarily weigh on cash.
- Interest costs: Adjusted interest at $204m and FY26 guidance $210–$220m keep financing costs elevated despite improved leverage.
- M&A/capex: Planned bolt-ons (~$200m) and capex ($190–$200m) are affordable but compete with cash uses.
- Macro/operational: Weather disruptions, geopolitical uncertainty, FX translation for GBP holders, and North America growth momentum are ongoing variables.
Read more
Rentokil Initial Annual Dividend Yield - 1.82%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 03/04/2025 |
14/05/2025 |
Final |
5.93p |
GBX |
| 14/08/2025 |
22/09/2025 |
Interim |
4.15¢ |
USX |
Total (Annual Dividends Per Share):
9.02p
(Using exchange rate on 08/04/2026
$ = £0.74355)
Dividend Yield =
Annual Dividends Per Share (9.02p)
÷ Share Price (495.5p)
= 1.82%
Rentokil Initial Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 09/04/2026 |
18/05/2026 |
Final |
8.24¢ |
USX |
| 14/08/2025 |
22/09/2025 |
Interim |
4.15¢ |
USX |
| 03/04/2025 |
14/05/2025 |
Final |
5.93p |
GBX |
| 08/08/2024 |
16/09/2024 |
Interim |
3.16p |
GBX |
| 04/04/2024 |
15/05/2024 |
Final |
5.93p |
GBX |
| 03/08/2023 |
11/09/2023 |
Interim |
2.75p |
GBX |
| 06/04/2023 |
17/05/2023 |
Final |
5.15p |
GBX |
| 04/08/2022 |
12/09/2022 |
Interim |
2.40p |
GBX |
| 07/04/2022 |
18/05/2022 |
Final |
4.30p |
GBX |
| 05/08/2021 |
13/09/2021 |
Interim |
2.09p |
GBX |
| 08/04/2021 |
19/05/2021 |
Final |
5.41p |
GBX |
| 09/04/2020 |
20/05/2020 |
Final |
3.64p |
GBX |
| 08/08/2019 |
11/09/2019 |
Interim |
1.51p |
GBX |
| 11/04/2019 |
15/05/2019 |
Final |
3.16p |
GBX |
| 09/08/2018 |
12/09/2018 |
Interim |
1.31p |
GBX |
| 12/04/2018 |
16/05/2018 |
Final |
2.74p |
GBX |
| 10/08/2017 |
13/09/2017 |
Interim |
1.14p |
GBX |
| 06/04/2017 |
17/05/2017 |
Final |
2.38p |
GBX |
| 11/08/2016 |
14/09/2016 |
Interim |
0.99p |
GBX |
| 07/04/2016 |
18/05/2016 |
Final |
2.06p |
GBX |
| 13/08/2015 |
16/09/2015 |
Interim |
0.87p |
GBX |
| 16/04/2015 |
20/05/2015 |
Final |
1.82p |
GBX |
| 13/08/2014 |
16/09/2014 |
Interim |
0.77p |
GBX |
| 09/04/2014 |
21/05/2014 |
Final |
1.61p |
GBX |
| 21/08/2013 |
24/09/2013 |
Interim |
0.70p |
GBX |
| Year |
Interim |
Final |
Currency |
Total |
Change |
| 2024 |
3.160 |
5.930 |
GBX |
9.090 |
15.060 |
| 2023 |
2.750 |
5.150 |
GBX |
7.900 |
17.910 |
| 2022 |
2.400 |
4.300 |
GBX |
6.700 |
-10.660 |
| 2021 |
2.090 |
5.410 |
GBX |
7.500 |
106.040 |
| 2020 |
|
3.640 |
GBX |
3.640 |
-22.050 |
| 2019 |
1.510 |
3.160 |
GBX |
4.670 |
15.300 |
| 2018 |
1.310 |
2.740 |
GBX |
4.050 |
15.050 |
| 2017 |
1.140 |
2.380 |
GBX |
3.520 |
15.400 |
| 2016 |
0.990 |
2.060 |
GBX |
3.050 |
13.380 |
| 2015 |
0.870 |
1.820 |
GBX |
2.690 |
13.020 |
| 2014 |
0.770 |
1.610 |
GBX |
2.380 |
240.000 |
| 2013 |
0.700 |
|
GBX |
0.700 |
|
Rentokil Initial Dividend Calculator
Rentokil Initial Dividend Growth
| Dividend Growth (1Y) |
-0.88%
|
| Dividend CAGR (5Y) |
10.74%
|
| Years of Growth |
–
|
| Payout Ratio |
64.68%
|
| Buyback Yield |
-0.28%
|
| Shareholder Yield |
1.64%
|
| P/E Ratio (TTM) | 58.82 |
|---|
| Forward P/E | 23.08 |
|---|
| P/FCF | 22.16 |
|---|
| Earnings Yield | 2.78% |
|---|
| FCF Yield | 4.51% |
|---|
| ROE | 5.38% |
|---|
| ROCE | 7.89% |
|---|
| Profit Margin | 6.8% |
|---|
| Operating Margin | 12.7% |
|---|
| Gross Margin | 13.77% |
|---|