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Rentokil Initial plc (RTO.L) logo

Rentokil Initial plc

EURO STOXX 600
RTO.L|Industrials|Specialty Business Services|£4.85|P/E 60.8|MCap 122.0M|LSE

Last update: May 9, 2026 at 09:32

Dividend Safety Rating

52/ 100Caution

RTO.L's dividend shows some areas that warrant monitoring. Strengths include a 49.5% fcf payout ratio & 45.5% cfo payout ratio. Areas of concern: 103.4% earnings payout ratio & 2.6x interest coverage.

Based on 14 of 15 metrics

Strengths

  • Gross Margin: 83.9%High gross margin signals strong pricing power.
  • Earnings Stability: GrowingEarnings have been stable and supportive of the dividend.
  • FCF Payout Ratio: 49.5%Free cash flow comfortably covers the dividend.

Risks

  • Earnings Payout Ratio: 103.4%High earnings payout ratio leaves little safety margin.
  • Dividend Cut: YesDividend was cut or suspended in recent history.
  • Interest Coverage: 2.6xInterest coverage is thin relative to debt servicing.

Payout & Coverage

Caution
Earnings Payout Ratio
103.4%Danger
FCF Payout Ratio
49.5%Safe
CFO Payout Ratio
45.5%Safe
Interest Coverage
2.6xWarning

Balance Sheet

Caution
Net Debt / Total Assets
30.3%Caution
Current Ratio
1.2xCaution
Debt-to-Equity
112.0Safe

Profitability

Safe
Return on Equity
5.4%Warning
Operating Margin
13.0%Caution
Gross Margin
83.9%Very Safe
Profit Margin Stability
StableSafe

Dividend Track Record

Caution
Dividend Streak
5 yrsCaution
Dividend Cut
YesDanger
5-Year Dividend CAGR
N/AN/A
Earnings Stability
GrowingVery Safe

About Rentokil Initial plc

Rentokil Initial plc is a British business services group specializing in pest control and hygiene & wellbeing services, operating in approximately 90 countries worldwide. Founded in 1925 as a pest-control business in England, it has evolved through strategic acquisitions, including BET plc in 1996—which introduced the Initial laundry and washroom services—and the landmark $6.7 billion purchase of Terminix in 2022, solidifying its position as a global leader. The company delivers essential services to over a million customers, ranging from multinational pharmaceutical, industrial, and food production firms to local shops, restaurants, and homes, with the United States accounting for about 60% of its revenue. Its portfolio operates under prominent brands like Rentokil, Initial, Terminix, Steritech, and Ambius, encompassing rodent and insect elimination, air fresheners, feminine hygiene units, hand dryers, soap dispensers, and innovative solutions such as LED insect light traps. Headquartered in Crawley, West Sussex, Rentokil Initial plc plays a critical role in facilities management, supporting hygiene, safety, and environmental standards across commercial and residential sectors.

Dividend Overview

Dividend Yield

1.90%

Annual Dividend

£0.09

Frequency

Semi-Annual

Payout Ratio

103.41%

FCF Payout Ratio

49.46%

Stock Price

£4.85

52-Week Range

£3.35 £5.07

Dividend History (2016–2025)

RTO.L annual dividend per share and yield history

Earnings & Profitability

RTO.L earnings per share and net profit margin

Key Dates

Last Ex-Dividend Date

April 9, 2026

Next Payment Date

Dividend Growth

3-Year Dividend CAGR

10.38%

5-Year Dividend CAGR

N/A

10-Year Dividend CAGR

12.85%

3-Year Total Growth

34.48%

5-Year Total Growth

N/A

10-Year Total Growth

234.94%

Income Calculator

RTO.L Dividend Calculator

Total Investment

£484.70

Annual Income

£9.18

Quarterly Income

£2.30

Monthly Income

£0.77

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Frequently Asked Questions

What is RTO.L's current dividend yield?
Rentokil Initial plc (RTO.L) currently has a dividend yield of 1.90%, based on a stock price of £4.85 and an annual dividend of £0.09.
When is RTO.L's next dividend payment date?
RTO.L's next ex-dividend date is 2026-04-09 and the next payment date is —. You must own the stock before the ex-dividend date to receive the upcoming payment.
How much does RTO.L pay in dividends per year?
Rentokil Initial plc paid £0.09 per share in annual dividends in 2025. The dividends are paid semi-annual.
Has RTO.L been increasing its dividend?
Rentokil Initial plc has grown its dividend at a 5-year CAGR of — and a 10-year CAGR of 12.85%.
Is RTO.L's dividend safe?
Rentokil Initial plc has a payout ratio of 103.41%. The payout ratio is above 100%, which may indicate the company is paying more in dividends than it earns. This could be unsustainable long-term.
How is RTO.L's Dividend Safety Rating calculated?
The Dividend Safety Rating evaluates Rentokil Initial 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.