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M&S Pledges to Double its Dividend to 8.4p

Marks and Spencer has pledged to double its dividend to 8.4p for the 2026/27 financial year and set out a plan to grow Food sales and lift margins in Fashion, Home & Beauty.

Marks and Spencer (LON: MKS) said today it will double its full-year 2026/27 dividend to 8.4p from 4.2p. The retailer, which sells Food and Fashion, Home & Beauty, announced the pledge at 7am, before the London open, alongside a plan for both businesses.

Shares in M&S were at 453.3p in a delayed quote at 14:01, up 3.6% from the previous close of 437.6p, after trading between 433.1p and 457.4p today. That is above the highest close of the past three months, 444.2p on Thursday 5 November. The shares rose on the day the plan was announced.

MKS.LSE

The statement to the London Stock Exchange set out the dividend and what follows it:

Within this context, the full year 2026/27 dividend will double to 8.4p from 4.2p. Thereafter, it is intended that dividends will grow at least in line with earnings over time.

Marks and Spencer

The doubling therefore applies to 2026/27 only. M&S said it expects free cash flow, the cash left after running costs and investment, in each of the next three years, and an investment-grade balance sheet in a net funds position, meaning more cash than debt.

It also said its £600m target for structural cost savings, meaning permanent reductions, by FY28 is on track. In Food, it aims to double sales over time, with an operating margin, or operating profit as a share of sales, of around 5%. Annual Food sales are up more than 50% since FY22.

M&S share price line drifting higher over three months, with the latest point, an intraday quote on 10 November, above the highest close of the period.
M&S shares rose above their highest close of the past three months on 10 November, the day of the dividend pledge. Last point is a delayed intraday quote, not a close.

For Fashion, Home & Beauty, the targets are online participation towards 50% with 180 highly productive stores, and margins above 10% in both channels.

M&S said its medium-term ambition is mid-to-high single-digit sales growth, with profit growth ahead of sales. It said that will need continued investment and a transformation of its end-to-end operating model.

For income-minded readers, 8.4p is the stated figure for 2026/27. Beyond that, the company intends the payout to grow at least in line with earnings.

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