A flat token dividend — covered, but unchanged for six years and worth a tenth of a percent. The $0.06 quarterly dividend ($0.24 annualized) is 14.7% of fiscal 2026 free cash flow and leverage is light at about 0.7×. But the dividend has been flat at $0.24 a year in every fiscal year from 2020 to 2026 — flat for more than three years, a caution under the §3 history test — and it has not been cut. The 0.10% yield is under 1%, which grades the card warn under §1.
Key risk: A dividend that never grows loses ground to inflation every year — and the payout signals the board prefers buybacks to dividend growth.
Changes if: The dividend is raised, or the yield rises above 1%.
- ✓FCF payout (§3) 14.7% of FY2026 free cash flow — inside the 60% pass band.
- !Dividend history (§3) Flat $0.24 in every fiscal year 2020–2026 — flat 3+ years, a caution; no cut.
- ✓Leverage (§3) About 0.7× on an approximate basis (net debt ≈$1,030m ÷ operating income + depreciation; D&A understated).
- !Yield (§1) 0.10% — under 1%, graded warn as a growth holding.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.