Tatton Asset Management
Website:
Tatton Asset Management
Index:
AIM
EPIC: TAM
Supersector:
Financial Services
Sector:
Financial Services
Subsector:
Asset Managers
Market Cap:
£411.95M
Payout Frequency: Semi-Annual
Tatton Asset Management Dividend Analysis and Summary
Declared Dividend
- Type: Interim
- Amount: 12.0p per share (up 26.3% vs 9.5p in the prior year)
- Ex-dividend date: 27/11/2025
- Record date: 28/11/2025
- Payment date: 19/12/2025
- Total cash cost: ~£7.3m (based on ~60.96m shares)
- Stated policy: pay c.70% of adjusted earnings, split evenly between interim and final
Financial Backdrop and Coverage
- H1 FY26 adjusted EPS (fully diluted): 16.02p (+17.2% YoY). Interim dividend of 12.0p equates to c.75% of H1 adjusted EPS (coverage ~1.33x on a half-year basis).
- Group revenue: £25.7m (+18.6%); adjusted operating profit: £13.1m (+20.4%) with a 51.0% margin.
- Balance sheet: net cash £34.1m; regulatory capital resources at 386% of requirement.
- AUM/I: £25.8bn at 30 Sep 2025 (current Nov 2025: £27.1bn), supported by strong net inflows of £1.68bn in H1.
- Policy signalling: With the 70% payout split evenly, a 12.0p interim implies a potential ~24.0p full-year dividend if the final matches, which in turn implies full-year adjusted EPS of ~34p (management confidence in H2).
Analysis: Sustainability and Growth Trajectory
- Sustainability: Backed by high-margin, cash-generative operations, strong net cash, and ample regulatory headroom. The business model scales with AUM, and operating leverage is evident in margins rising to 51%.
- Growth: The 26.3% uplift in the interim signals confidence. Given H1 adjusted EPS growth (+17%) and continuing inflows to model portfolios, a higher full-year distribution (potentially ~24p) looks consistent with the stated 70% payout policy.
- Coverage: On policy, the total dividend targets ~70% of adjusted EPS (implied cover ~1.4x). H1-only cover is tighter (1.33x) but reflects the even split between interim and final against a seasonally stronger H2.
- Capital allocation: The Board reiterates the payout policy while investing for growth (e.g., up to £10m commitment to Carlos Topco Limited, c.£3.8m expected in Dec 2025), which appears manageable given cash resources.
Structural/Other Factors Affecting Future Dividends
- Conclusion of Perspective Financial Group (PFG) contract in Jan 2026: AUM linked to this relationship was £3.5bn at Sep 2025 and contributed £333m of H1 net inflows. Its conclusion could moderate inflows/revenue growth into FY27 absent replacement flows, though management remains confident in the FY29 £30bn AUM/I target.
- Share issuance: 415,407 new shares issued to satisfy options (modest dilution; dividend cash cost grows slightly with share count).
- Capital commitment: Up to £10m investment commitment over five years; Board states this will not compromise cash strength or regulatory headroom.
Risks and Flags to Dividend Stability
- Market sensitivity: AUM and fee revenues are exposed to market volatility and risk-off periods (CEO notes macro/geopolitical uncertainty).
- Client concentration/event risk: The PFG contract ending in Jan 2026 is a notable near-term headwind to inflows and scale, though diversified adviser relationships mitigate some risk.
- Pricing pressure: MPS fees remain competitive at 15 bps; while pressure is said to be easing, sustained low pricing caps revenue per unit of AUM.
- Regulatory environment: Consumer Duty generally aligns with Tatton’s model but ongoing regulatory changes can affect costs and proposition economics.
Read more
Tatton Asset Management Annual Dividend Yield - 3.21%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 19/06/2025 |
31/07/2025 |
Final |
9.50p |
GBX |
| 27/11/2025 |
19/12/2025 |
Interim |
12.0000p |
GBX |
Total (Annual Dividends Per Share):
21.50p
Dividend Yield =
Annual Dividends Per Share (21.50p)
÷ Share Price (670p)
= 3.21%
Tatton Asset Management Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 27/11/2025 |
19/12/2025 |
Interim |
12.0000p |
GBX |
| 19/06/2025 |
31/07/2025 |
Final |
9.50p |
GBX |
| 21/11/2024 |
13/12/2024 |
Interim |
9.50p |
GBX |
| 27/06/2024 |
06/08/2024 |
Final |
8.00p |
GBX |
| 23/11/2023 |
08/12/2023 |
Interim |
8.00p |
GBX |
| 06/07/2023 |
15/08/2023 |
Final |
10.0p |
GBX |
| 01/12/2022 |
16/12/2022 |
Interim |
4.50p |
GBX |
| 23/06/2022 |
02/08/2022 |
Final |
8.50p |
GBX |
| 25/11/2021 |
17/12/2021 |
Interim |
4.00p |
GBX |
| 24/06/2021 |
28/07/2021 |
Final |
7.50p |
GBX |
| 26/11/2020 |
18/12/2020 |
Interim |
3.50p |
GBX |
| 16/07/2020 |
28/08/2020 |
Final |
6.40p |
GBX |
| 21/11/2019 |
13/12/2019 |
Interim |
3.20p |
GBX |
| 13/06/2019 |
12/07/2019 |
Final |
5.60p |
GBX |
| 22/11/2018 |
14/12/2018 |
Interim |
2.80p |
GBX |
| 05/07/2018 |
10/08/2018 |
Final |
4.40p |
GBX |
| 14/12/2017 |
12/01/2018 |
Interim |
2.20p |
GBX |
| Year |
Interim |
Final |
Currency |
Total |
Change |
| 2024 |
9.500 |
8.000 |
GBX |
17.500 |
-2.770 |
| 2023 |
8.000 |
10.000 |
GBX |
18.000 |
38.460 |
| 2022 |
4.500 |
8.500 |
GBX |
13.000 |
13.040 |
| 2021 |
4.000 |
7.500 |
GBX |
11.500 |
16.160 |
| 2020 |
3.500 |
6.400 |
GBX |
9.900 |
12.500 |
| 2019 |
3.200 |
5.600 |
GBX |
8.800 |
22.220 |
| 2018 |
2.800 |
4.400 |
GBX |
7.200 |
227.270 |
| 2017 |
2.200 |
|
GBX |
2.200 |
|
Tatton Asset Management Dividend Calculator
Tatton Asset Management Dividend Growth
| Dividend Growth (1Y) |
22.86%
|
| Dividend CAGR (5Y) |
16.78%
|
| Years of Growth |
–
|
| Payout Ratio |
67.09%
|
| Buyback Yield |
-1.01%
|
| Shareholder Yield |
2.56%
|
| P/E Ratio (TTM) | 24.52 |
|---|
| Forward P/E | 19.97 |
|---|
| P/FCF | 23.15 |
|---|
| Earnings Yield | 4.13% |
|---|
| FCF Yield | 4.32% |
|---|
| ROE | 32.74% |
|---|
| ROCE | 39.35% |
|---|
| Profit Margin | 34.56% |
|---|
| Operating Margin | 45.13% |
|---|
| Gross Margin | 100% |
|---|