Highlights

• Telecom Plus paid 50p in Ordinary Dividends across two payments with ex-dates in the last twelve months.

• The August 2026 final of 12p compares with a 57p final paid in August 2025.

• At 889p on 16 October 2026, the trailing 50p equates to a 5.62% paid yield.

• The group resells gas, electricity, broadband and mobile services, alongside insurance and Cashback card products.

Few income payouts have moved as sharply as the one at Telecom Plus (LSE:TEP). A 38p payment in December 2025 was followed by a 12p final in August 2026, a long way below the 57p final a year before. Add the two together and shareholders collected 50p during the window, a record that deserves a closer look at what sits behind it.

The payment trail

Telecom Plus went ex-dividend on 4 December 2025 for 38p, paid on 19 December 2025. The next ordinary payment went ex on 6 August 2026 for 12p, with settlement on 28 August 2026. Those two figures total 50p, and no Special Dividend appeared in the period. The payment before them, 57p, went ex on 24 July 2025. That falls outside the twelve-month window but shows how far the latest final has stepped down. Readers comparing LSE:TEP across years should therefore look at each payment separately rather than relying on a single annual total.

What the Yield says

Using the delayed price of 889p from 16 October 2026, the 50p paid in the window equates to a trailing yield of 5.62%. Yield is the dividend divided by the share price, so a different quote gives a different answer. A higher published yield of 6.23% points to a lower share price at the time it was calculated, which shows how much the figure moves with the quote. No forward payout has been confirmed, so any projection would be guesswork. Investors should treat the 12p final as the latest hard datapoint, not the 38p interim.

Business overview

Telecom Plus is a UK Utility reseller. It supplies gas, electricity, fixed-line telephony, broadband and mobile services, plus insurance, bill protection and boiler cover, under the Utility Warehouse and TML brands. It also offers a cashback card. Incorporated in 1996, it is based in London and sits in the FTSE 250 according to the index constituent list updated in September 2026. A multi-service model gives the company several Revenue lines, and households that take more than one service from a single supplier tend to stay longer, which supports recurring income.

Why a final dividend can fall

Companies often split their yearly payout into an interim and a final. The interim is declared during the year, while the final follows the annual results and reflects the board's view of profit, cash and Investment needs. When a final falls from 57p to 12p, the cause may be a lower profit, a change in dividend policy, higher spending plans or a shift in the balance between the interim and final. Shareholders in Telecom Plus should look at the explanation in the company's results and dividend policy statements instead of assuming the reduction is permanent or temporary.

Risks to weigh

The sharp drop in the final dividend is the headline risk: a payment that falls from 57p to 12p shows how quickly distributions can reset. The reason for the cut and the level of dividend cover, which compares profit with the payout, should be checked in the company's reports. Utilities resale also operates in a regulated, price-sensitive market, where wholesale energy costs and customer switching can affect margins. The share price has moved by several percentage points in a single session, which feeds straight into the yield.

Dividends and the utility reseller model

A reseller does not own the networks it uses, so its profit depends on the Margin between what it pays for energy and telecom capacity and what customers are charged, plus the commissions and fees from other services. Telecom Plus (LSE:TEP) has several lines, which can help smooth earnings, but a change in energy costs or customer behaviour can still alter the cash available for dividends. This is why the size of an annual payout can change even when the number of customers is stable, and why investors should read the explanation that accompanies each dividend announcement.

A closer look at timing

The ex-dividend dates in December and August show that the company pays in two instalments. Shareholders who bought just before 4 December 2025 received 38p, while those who bought before 6 August 2026 received 12p. A buyer today qualifies only for the next declared payment. That makes the trailing figure of 50p a record of what was paid, not a guide to the next twelve months. The gap between the 57p of July 2025 and the 12p of August 2026 is the reason many income investors prefer to watch the direction of each payment.

What to watch next

The next milestone is the interim payment for the current year, normally announced alongside half-year results. A recovery towards the earlier level, or a repeat of the lower amount, would show whether the 12p final marks a new base for LSE:TEP. Investors relying on this income should also keep an eye on the price, since a rising share price lowers the yield even if the payout is unchanged.