Highlights

• Cavendish paid 0.8p across two dividends, ex-dividend on 20 November 2025 and 20 August 2026.

• The 0.8p total equates to an 11.43% Yield on the 7.00p price recorded on 29 October 2026.

• The second payment, 0.5p, is higher than the 0.3p paid in the first, a rise of two-thirds.

• The firm advises public and private companies on broking, mergers and acquisitions, Debt advisory and Capital raising from London.

Tiny amounts, big percentages. Cavendish (LSE:CAV) is an advisory and broking house whose shares trade at single-digit pence, so a combined 0.8p of dividends lifts the trailing yield above 11%. The picture hinges on a price that has been moving about, which makes the Dividend sequence the thing to understand.

Two small payments

The first dividend, 0.3p, went ex on 20 November 2025, with the Record Date on 21 November and payment on 10 December 2025. The second, 0.5p, went ex on 20 August 2026, with the record date on 21 August and payment on 15 September 2026. Their sum is 0.8p, which matches the annual figure published elsewhere. Neither payment was marked special. For holders of the company, the increase from 0.3p to 0.5p is the notable feature.

Yield and price swings

On the delayed price of 7.00p recorded on 29 October 2026, 0.8p equates to a paid yield of 11.43%. An earlier quote of 8.60p on 23 September would have meant 9.30%, the figure published elsewhere. With the price so low, a move of half a penny shifts the yield by well over a percentage point. No forward payout has been confirmed, so the trailing figure should be treated as a record, not an expectation.

The business

Cavendish is a London-based Investment bank providing corporate advisory, broking, M&A, debt advisory and capital-raising services to public and private companies. It was founded in 2007 and, as Cavendish Financial plc, took its current name in January 2025. The shares trade on AIM, and neither the FTSE 250 nor the FTSE SmallCap lists checked included it. Its fees come from advising on transactions, raising capital for clients and trading in shares as a broker.

How advisory firms earn income

Advisory and broking Revenue depends on deal activity. When companies are raising money or being bought and sold, fees flow in; when markets are quiet, income can drop quickly. This makes Earnings uneven, and a steady dividend requires either reserves or a diversified mix of revenue. Cavendish (LSE:CAV) combines advisory work with broking, which provides some regular income, although share market activity remains the main driver.

Understanding the sub-10p share price

A share priced at 7p moves in very small steps, and each step is a large percentage of the price. This effect magnifies both gains and losses and can make yields change quickly. It also means that a yield above 11% may reflect market caution as much as generosity. Readers should look at the trend in profit, the size of the dividend relative to earnings and the quality of the company's cash position.

What could go wrong

A published trailing Payout Ratio of about 470% of earnings, if accurate, would mean payments exceed profit, so this should be checked in the company's filings. A share price that fell from 8.60p to 7.00p within five weeks also shows the volatility. Smaller companies on AIM may have limited trading volume, which can make it harder to buy or sell. Check the latest results for cover.

Deal cycles and dividends

Advisory firms tend to earn most of their revenue in periods when companies are raising capital and making acquisitions. In quiet markets, even a well-run firm may find fees falling. A dividend of 0.8p is small in absolute terms, which means the cost to the company is modest, yet the payout ratio can still look high if profit is low. Cavendish (LSE:CAV) therefore needs a steady pipeline of work to support payments.

A cautious way to read a high yield

A double-digit yield should prompt a check of the share price history, the earnings trend and the balance sheet. If the share price has fallen because of falling profit, the yield will look high just before the dividend is cut. If the price has fallen for general market reasons, the dividend may be safe. For the company, the recent fall from 8.60p to 7.00p makes it important to read the next results carefully.

Inflation and the real value of income

A dividend that stays the same loses buying power when prices rise. If Inflation runs at 3% a year, a payment of 10p is worth about 7.4p in today's money after ten years. Companies that raise their dividends at least in line with inflation help to protect the real value of the income. Investors can compare the growth in the payment with the rate of inflation.

What to watch next

The next milestones for LSE:CAV are the interim results and the dividend declaration. Investors should look for the Volume of advisory mandates, the strength of the pipeline and any change in the board's stance on distributions. A repeat of 0.5p would support the current rate, while a lower amount would suggest caution.