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Bunzl Boosts Interim Dividend, Announces Share Buyback

Dividend Cover Predicted to Decrease Significantly in 2024

Key Points

• Bunzl plc plans to reduce its dividend cover in 2024 to around 265 times.
• Bunzl announced an interim dividend of 201 pence per share for 2024.
• The share price of Bunzl rose to a record high following the announcement.
• Bunzl raised its interim dividend by 10.4% to 201p from 182p in H1 2023, despite mixed results.
• The company announced a 104% increase in interim dividend per share to 201p.

Company Performance and Dividend Increase

Bunzl plc reported mixed results, but still raised its interim dividend by 10.4% to 201p. This is an increase from the 182p dividend paid in H1 2023.

The dividend increase was driven by the company's strong cash flow and its confidence in its future prospects. Bunzl also announced a £1 billion share buyback program, which is expected to be completed in 2024.

The share price of Bunzl rose by 5% in the wake of the announcements.

Analyst Commentary

Analysts have praised Bunzl's dividend increase and share buyback program as signs of the company's strength and confidence.

However, some analysts have expressed concern about the company's dividend cover, which is expected to decrease significantly in 2024.

Despite these concerns, analysts remain bullish on Bunzl's long-term prospects.

Conclusion

Bunzl's dividend increase and share buyback program are positive signs for the company's future prospects. However, investors should be aware of the potential risks associated with the company's dividend cover.