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Babcock International Group plc (BAB.L) logo

Babcock International Group plc

EURO STOXX 600

BAB.L/Industrials · Engineering & Construction/LSE

Dividend Yield

0.25%

£0.03 · Annual Dividend

Stock Price£9.85P/E24.7MCap48.162Last update: Jun 26, 2026 at 06:56

Dividend Safety Rating

50/ 100Caution

BAB.L's dividend shows some areas that warrant monitoring. Strengths include a 11.7% earnings payout ratio & 14.8% fcf payout ratio. Areas of concern: 0.8x current ratio & 8.4% gross margin.

Based on 14 of 15 metrics

Strengths

  • Earnings Payout Ratio: 11.7%Low earnings payout ratio leaves room to grow the dividend.
  • FCF Payout Ratio: 14.8%Free cash flow comfortably covers the dividend.
  • CFO Payout Ratio: 9.9%Operating cash flow strongly supports the payout.

Risks

  • Gross Margin: 8.4%Gross margin is low and limits flexibility.
  • Profit Margin Stability: UnstableProfit margins have been volatile.
  • Dividend Cut: YesDividend was cut or suspended in recent history.

Payout & Coverage

Very Safe
11.7%Very Safe
14.8%Very Safe
9.9%Very Safe

Balance Sheet

Caution

Profitability

Caution
44.9%Very Safe
9.6%Caution
8.4%Danger

Dividend Track Record

Danger

About Babcock International Group plc

Babcock International Group plc is a British engineering support services company specializing in aerospace, defence, and nuclear sectors. Headquartered in London, it focuses on managing complex assets and infrastructure, primarily serving public bodies such as the United Kingdom's Ministry of Defence and Network Rail, alongside civil contracts. The company operates through four key sectors: Marine, Land, Aviation, and Cavendish Nuclear, delivering through-life technical and engineering support to enhance asset performance, availability, and cost efficiency. Babcock provides frontline support, specialist training, asset management, and designs defence equipment including naval ships, weapons handling systems, secure communications, electronic warfare, and air defence solutions. With a global footprint spanning Africa, North America, South America, Europe, and Australasia, it supports defence, emergency services, energy, transport, and education sectors. Tracing its roots to 19th-century boiler manufacturing, Babcock has evolved into a FTSE 100 constituent, emphasizing sustainability and governance in its strategy to create a safe and secure world. Employing around 26,858 people, it remains a pivotal player in critical national security and infrastructure services.

Dividend Overview

Dividend Yield

0.25%

Annual Dividend

£0.03

Frequency

Annual

Payout Ratio

11.65%

FCF Payout Ratio

14.79%

52-Week Range

£9.35 - £15.27

Dividend History (2016–2025)

BAB.L annual dividend per share and yield history

Earnings & Profitability

BAB.L earnings per share and net profit margin

Key Dates

Last Ex-Dividend Date

December 4, 2025

Next Payment Date

Dividend Growth

3-Year Dividend CAGR

N/A

5-Year Dividend CAGR

N/A

10-Year Dividend CAGR

-11.65%

3-Year Total Growth

N/A

5-Year Total Growth

N/A

10-Year Total Growth

-71.01%

Income Calculator

BAB.L Dividend Calculator

Total Investment

£985.00

Annual Income

£2.50

Quarterly Income

£0.63

Monthly Income

£0.21

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Frequently Asked Questions

What is BAB.L's current dividend yield?
Babcock International Group plc (BAB.L) currently has a dividend yield of 0.25%, based on a stock price of £9.85 and an annual dividend of £0.03.
When is BAB.L's next dividend payment date?
BAB.L's next ex-dividend date is 2025-12-04 and the next payment date is —. You must own the stock before the ex-dividend date to receive the upcoming payment.
How much does BAB.L pay in dividends per year?
Babcock International Group plc paid £0.07 per share in annual dividends in 2025. The dividends are paid annual.
Has BAB.L been increasing its dividend?
Babcock International Group plc has grown its dividend at a 5-year CAGR of — and a 10-year CAGR of -11.65%.
Is BAB.L's dividend safe?
Babcock International Group plc has a payout ratio of 11.65%. A payout ratio below 60% is generally considered sustainable.
How is BAB.L's Dividend Safety Rating calculated?
The Dividend Safety Rating evaluates Babcock International Group plc's dividend sustainability across four categories: Payout & Coverage (30%), Balance Sheet (20%), Profitability (20%), and Dividend Track Record (30%). Each metric is rated from "Very Safe" to "Danger" based on industry-standard thresholds, with sector-specific adjustments for industrials companies. The overall score ranges from 0 to 100.

Want to understand how we rate dividend safety? Read our full methodology

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This page is not investment advice. The content is for informational purposes only and should not be construed as a recommendation to buy, sell, or hold any security. Always do your own research and consult a qualified financial advisor before making investment decisions.

Financial data, including dividend history, earnings, balance sheet metrics, and the Dividend Safety Rating, is provided for informational purposes only. Data may be delayed or differ from official filings. Past performance does not guarantee future results. Always verify with official sources before making investment decisions.

Market data provided by Twelve Data.