WPP Group

WPP Group Dividend Analysis and Summary

• Dividend type: Final dividend (FY2025)
• Amount: 7.5p per share (full-year FY2025 dividend: 15.0p)
• Ex-dividend date: 04/06/2026 (derived from record date)
• Record date: 05/06/2026
• Payment date: 03/07/2026
• Policy/Guidance: Board intends to maintain the annual dividend at 15.0p per share in 2026
• Context: FY2025 dividend reduced by ~62% vs FY2024 (39.4p ? 15.0p)

• Coverage (earnings): FY2025 headline diluted EPS was 63.2p, implying a payout ratio of ~24% on the new 15.0p dividend — comfortable on a headline basis. Reported EPS was negative (loss), so not covered on a statutory basis.
• Coverage (cash): FY2025 adjusted free cash flow was £202m vs dividends paid of £343m — not covered last year. For 2026, management guides adjusted operating cash flow before working capital of £800–900m, but with ~£250m cash restructuring, higher tax and interest, and a weaker H1; near-term cash coverage will remain tight.
• Trajectory: The dividend has been reset to a lower base (15.0p) and is expected to be held flat in 2026. Any growth is more likely post-2027 when the Elevate28 programme aims to restore organic growth and margins.
• Support from capital allocation: Management prioritises an investment-grade balance sheet, funding organic growth, and then shareholder returns. With leverage expected to rise in 2026 before improving, dividend growth looks constrained near term, but the reset level appears designed to be sustainable through the transformation.