Barclays sharpens capital returns with dividends set to accelerate

Barclays PLC (LSE: BARC) is leaning more heavily on share repurchases as it seeks to deploy excess capital, supported by a solid earnings backdrop and a robust balance sheet.

The UK lender reported strong fourth-quarter results on February 10, and announced a £1 billion share buyback to begin in the first quarter of fiscal 2026, targeting £15 billion in total distributions over 2026–2028, through a combination of dividends and share buybacks.

Visible Alpha consensus shows analysts forecast dividend payments rising from £1.2 billion in 2025 to £1.9 billion in 2026, up 57% year-on-year, marking a step-change in payout policy after several years of largely flat distributions. Dividends are expected to grow at a double-digit pace through 2028, reaching about £2.4 billion.

Buybacks are projected to expand, climbing from £2.3 billion in absolute terms in 2025 to £3.1 billion in 2026, up 39% and rising to over £3.8 billion by 2028, while the number of shares repurchased is expected to recover gradually after a dip in 2025.

This article was published by Visible Alpha, part of S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.