Key Highlights

  • IG Group Holdings plc (LSE:IGG) joined the FTSE 100 on 23 March 2026 and offers a Dividend Yield of 7.73%.
  • The Interim Dividend for H1 2026 was raised to 14.46p per share, 30% of the prior full-year dividend.
  • The board remains committed to a progressive ordinary dividend.
  • Total Revenue rose 18% to £642.8m in H1 2026, with adjusted EPS up 21% to 68.9p.
  • Active customers grew 66% to 843,600.
  • The £125m buyback was paused after about £33m was completed, following the proposed Underdog acquisition.

Overview of IG Group

IG Group Holdings plc (LSE:IGG) is a global online trading and Investment platform offering access to over 10,000 financial markets, including shares, indices, forex, commodities and cryptocurrencies. It entered the FTSE 100 in March 2026 after a period of strong growth. IG changed its financial year-end from May to December in November 2025.

The 7.73% dividend yield sits alongside substantial share buybacks. IG returned £320.8m to shareholders through dividends and Buybacks in 2025.

Latest Results

For the seven-month transitional year ended 31 December 2025, IG reported record results, with total revenue for the calendar year up 7% to £1,123.4m and adjusted EPS up 5% to 115.3p. It proposed a final dividend of 28.12p, equivalent to seven-twelfths of the dividend for a full 12 months. The previous full-year dividend for the year to May 2025 was 47.2p.

For the six months ended 30 June 2026, IG delivered strong results: total revenue rose 18% to £642.8m, adjusted EPS rose 21% to 68.9p and the EBITDA Margin was 44%. Active customers grew 66% to 843,600. IG returned £221.2m to shareholders through dividends and buybacks in the period.

Dividend Policy

IG's dividend policy is progressive. The proposed interim dividend for H1 2026 was raised to 14.46p, representing 30% of the prior full-year dividend calculated by reference to the 12 months ended 31 May 2026. The board said there was no change to dividend policy.

Share Buyback

IG announced a new £125m buyback in March 2026 after extending its previous programme to £200m. The buyback was paused alongside the announcement of the proposed Acquisition of Underdog on 30 July 2026, with about £33m completed. Management expects buybacks to resume in 2027 after the company redomiciles.

Strategic Review and Underdog

IG launched a strategic review in March 2026 to ensure it captures long-term opportunities. The review is substantially complete, and IG agreed to acquire Underdog, which is expected to be EPS neutral in year one and double-digit accretive by year three. A refreshed strategy and Capital allocation framework were set for presentation in October 2026.

Dividend Cover and Capital

With adjusted EPS of 68.9p in H1 2026 and an interim dividend of 14.46p, the dividend is comfortably covered. The pro forma Solvency Ratio is expected to be within IG's 160% to 200% target range at the end of 2026.

Customer Growth Engine

The 66% rise in active customers reflects IG's investment in product propositions, Marketing and newer offerings such as share dealing and crypto. A larger customer base increases Recurring Revenue and reduces reliance on volatile trading conditions. The acquisition of Independent Reserve in January 2026 also expanded IG's crypto capabilities in Asia-Pacific. Management guides to medium-term organic revenue growth of at least 10% a year.

Risks

Risks include regulatory changes affecting CFD and crypto products, market Volatility affecting trading volumes, integration risk from Underdog and competition from rivals such as CMC Markets.

Market Sentiment

Investor sentiment has been positive given record results and FTSE 100 inclusion. Some caution surrounds the buyback pause and the size of the acquisition.

How IGG Fits an Income Portfolio

IG offers a well-covered progressive dividend with additional buyback returns, making it a total Shareholder return story rather than a pure high-yield stock.

Dividend Sustainability Scorecard

  • Dividend: progressive, interim raised to 14.46p.
  • Cover: strong, with adjusted EPS well above the dividend.
  • Buyback: paused, expected to resume in 2027.
  • Growth: revenue up 18% and customers up 66% in H1 2026.
  • Key risk: regulation and acquisition integration.

What Investors Should Watch

Watch the October 2026 strategy update, Underdog integration, redomicile progress and the resumption of buybacks.

Is the 7.73% Yield Sustainable?

IG's ordinary dividend is highly sustainable. Total shareholder returns also depend on buybacks, which are paused, so near-term total returns may be lower. LSE:IGG suits investors seeking a growing dividend from a strong, cash-generative platform.