BT overhauls dividend policy as it vows ‘enhanced distributions’ for shareholders
BT has refreshed its dividend policy as the telco giant vowed to deliver “enhanced distributions” for shareholders.
The FTSE 100 member declared a final dividend of 5.87p, increasing its full-year dividend by 2 per cent to 8.32p.
BT said its new policy would be to “grow the dividend by low to mid single digit percent per annum in FY27 and onwards” until its debt achieved a BBB+ credit rating, which it said would free up cash “available for enhanced distributions to shareholders.”
The company’s previous policy was to “maintain or grow the dividend each year.”
BT posted a pre-tax profit of £1.4bn for the year to end March, a jump of 8 per cent, while revenue fell 3 per cent to £19.7bn, dragged down by a decline in international turnover as it divested some of its overseas operations.
The company, which also owns mobile network EE, maintained its revenue, profit and cash forecasts for the year as it upgraded its target for the nationwide rollout of full fibre.
BT lost 203,000 broadband customers in the first three months of 2026, bringing its total annual losses to 825,000, coming in slightly better than its expected 850,000 losses.
Chief executive Allison Kirkby said: “We have delivered on our financial guidance and we are transforming ahead of plan, offsetting headwinds while successfully competing.”