Explore London Stock Exchange Group's Fair Values from the Community and select yours

Readers hoping to buy London Stock Exchange Group plc (LON:LSEG) for its dividend will need to make their move shortly, as the stock is about to trade ex-dividend. The ex-dividend date generally occurs two days before the record date, which is the day on which shareholders need to be on the company's books in order to receive a dividend. The ex-dividend date is an important date to be aware of as any purchase of the stock made on or after this date might mean a late settlement that doesn't show on the record date. Therefore, if you purchase London Stock Exchange Group's shares on or after the 14th of August, you won't be eligible to receive the dividend, when it is paid on the 17th of September.

The company's next dividend payment will be UK£0.47 per share, on the back of last year when the company paid a total of UK£1.30 to shareholders. Based on the last year's worth of payments, London Stock Exchange Group stock has a trailing yield of around 1.3% on the current share price of UK£99.62. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! We need to see whether the dividend is covered by earnings and if it's growing.

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Dividends are typically paid out of company income, so if a company pays out more than it earned, its dividend is usually at a higher risk of being cut. London Stock Exchange Group paid out more than half (73%) of its earnings last year, which is a regular payout ratio for most companies.

Generally speaking, the lower a company's payout ratios, the more resilient its dividend usually is.

View our latest analysis for London Stock Exchange Group

Click here to see the company's payout ratio, plus analyst estimates of its future dividends.LSE:LSEG Historic Dividend August 9th 2025

Have Earnings And Dividends Been Growing?

Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. This is why it's a relief to see London Stock Exchange Group earnings per share are up 9.5% per annum over the last five years.

Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. London Stock Exchange Group has delivered 19% dividend growth per year on average over the past 10 years. It's encouraging to see the company lifting dividends while earnings are growing, suggesting at least some corporate interest in rewarding shareholders.

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The Bottom Line

Has London Stock Exchange Group got what it takes to maintain its dividend payments? London Stock Exchange Group has been generating some growth in earnings per share while paying out more than half of its earnings to shareholders in the form of dividends. We think there are likely better opportunities out there.

Curious what other investors think of London Stock Exchange Group? See what analysts are forecasting, with this visualisation of its historical and future estimated earnings and cash flow.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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