September brings a more interesting outlook for dividend payments from the largest European companies after a slow August. Out of the 16 companies identified to pay dividends next month, 14 are British. AstraZeneca’s dividends and share repurchases are viewed as appropriate by Morningstar analysts despite challenges with a tough patent cliff.

Lloyds Banking Group has an adequate common equity Tier 1 ratio and follows a sound shareholder distribution policy. The bank’s previous de-risking efforts and the acquisition of MBNA have positively impacted its balance sheet and funding base, leading to improved net interest margins.

RELX returns capital to shareholders through dividends and buybacks, which are considered appropriate given its business fundamentals and relatively mature end markets. The regular buybacks are not opportunistic and are expected to be completed at around fair value, with little impact on the valuation.

Unilever’s shareholder distributions, including dividends and share repurchases, are deemed appropriate by Morningstar analysts. The company’s high dividend payout ratio is expected to be maintained, with a focus on tuck-in acquisitions in the beauty and wellbeing space.

NatWest Group has significantly de-risked its balance sheet and is returning capital to shareholders more efficiently. The UK government’s shareholding no longer poses a threat, and the bank’s distribution policy of a 50% dividend payout ratio combined with share buybacks is seen as prudent.

Barclays has an adequate common equity Tier 1 ratio and a solid balance sheet. The decision to return excess capital to shareholders through share buybacks post-pandemic is viewed positively, showing management’s flexibility in capital distribution.

London Stock Exchange Group’s dividend policy of paying out a portion of adjusted earnings is considered prudent by Morningstar analysts. The commitment to distributing excess capital to shareholders through share buybacks further supports the company’s shareholder-friendly approach.

Read more at Morningstar: UK and European Companies That Pay Dividends in September 2025