SSE

SSE Dividend Analysis and Summary

• Declared interim dividend: 21.4p per share (formulaic; one-third of FY24/25 full-year dividend of 64.2p).
• Ex-dividend date: 04/12/2025.
• Record date: 05/12/2025.
• Payment date: 30/01/2026.
• Scrip dividend: available. Reference pricing window 4–10/12/2025; reference price announced 11/12/2025; election deadline 02/01/2026. Scrip take-up is capped at 25% with buybacks used if necessary (FY24/25 take-up was 9.7%).
• Policy and guidance: Progressive dividend policy targeting 5–10% annual DPS growth to 2029/30 from a 64.2p FY24/25 baseline; company expects FY25/26 DPS to rise 5–10% y/y.

• Coverage: H1 adjusted EPS 36.1p vs interim DPS 21.4p (~1.7x cover) in the seasonally weaker half; interim is formulaic and final dividend is set in May after stronger H2 earnings. For context, FY24/25 adjusted EPS of 160.9p covered the 64.2p DPS by ~2.5x.
• Earnings mix: Regulated Networks contributed ~two-thirds of adjusted operating profit; SSEN Transmission profit almost doubled on rising allowed revenues. This supports dependable cash flows to fund dividends.
• Balance sheet and funding: Adjusted net debt and hybrid capital £11.4bn; FY25/26 net debt/EBITDA guided to 3.5–4.0x (kept below 4.5x through the plan). Funding for growth includes a concurrent ~£2bn equity placing, ~£2bn asset rotations, and recent hybrid issuance; investment-grade ratings reaffirmed (Moody’s Baa1, S&P BBB+).
• Growth platform: A £33bn five-year plan (to 2029/30) skews ~80% to regulated Networks, with projected ~7–9% EPS CAGR and ~80% index-linked EBITDA by 2029/30—favourable for sustaining a progressive dividend trajectory.