RELX PLC (LON:REL): A Secure Dividend Play Ahead of Ex-Dividend Date
94min read Investors counting down to RELX PLC’s (LON:REL) ex-dividend date have just four days left to secure eligibility for its upcoming dividend payout. With the ex-dividend date set for May 8, 2025, shareholders must own shares by this deadline to qualify for the final dividend of £0.448 per share, part of a total annual dividend of £0.630 per share—a 7% increase over 2024. This article explores the dividend’s sustainability, the company’s financial resilience, and risks to consider before committing capital.
Ask Aime: "Is RELX PLC's ex-dividend date approaching quickly? What's the risk of not securing shares for the final dividend?"
A Steady Dividend Machine
RELX, a global provider of information and analytics solutions, has built a reputation for reliable dividends. Its dividend yield of 1.7% (as of May 2025) may not be the highest, but its track record of consistent growth is compelling. Over the past decade, dividends have risen by an average of 9.3% annually, supported by strong earnings. The dividend cover of 2.0—meaning earnings comfortably exceed payouts—underscores its financial prudence.
Financial Strength Anchors the Payout
RELX’s 2024 results revealed robust performance:
- Revenue rose 7% to £9.434 billion, driven by growth in analytics and decision tools.
- Adjusted EPS increased 5% to £1.201, with a 10% rise in adjusted operating profit to £3.199 billion.
- The company plans £1.5 billion in share buybacks in 2025, building on £1.0 billion in 2024, further boosting shareholder returns.
Risks and Considerations
While RELX’s dividend appears sustainable, two unspecified warning signs noted in recent analyses warrant scrutiny. These could include competitive pressures in its information services segment, regulatory risks, or macroeconomic headwinds impacting corporate spending on analytics. Investors should review the company’s latest reports for clarity.
Additionally, the dividend’s modest yield (1.7%) may underwhelm income-focused investors seeking higher payouts. However, the total shareholder return—combining dividends and buybacks—remains a key advantage.
Timing the Ex-Dividend Window
The ex-dividend date (May 8) is critical: shares purchased before this date qualify for the dividend, while those bought afterward do not. The record date is May 9, and the dividend will be paid on June 19, 2025. Shareholders can also elect to receive dividends in euros instead of pounds by May 27.
Conclusion: A Solid, if Conservative, Play
RELX’s dividend is a reliable income source, backed by strong earnings and a disciplined capital allocation strategy. With a dividend cover of 2.0 and a track record of growth, the company is well-positioned to sustain payouts even amid economic uncertainty. However, investors should weigh the modest yield against the risks and consider the broader market context.
The upcoming ex-dividend date offers a clear entry point for those seeking steady returns. While the yield may not excite aggressive income seekers, RELX’s consistent growth in analytics and AI-driven solutions positions it as a defensive holding in volatile markets. As always, due diligence—particularly on the flagged risks—is essential before investing.
In summary, relx plc presents a balanced opportunity for income investors willing to prioritize stability over high yield, provided the company continues to execute its strategy amid evolving industry dynamics.
