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Greggs (LSE: GRG) Actions have dropped by 37% from the beginning of the year. But lower stock prices can often mean better phrases for investors in a long -term perspective.
In the case of FTSE 250 Food seller, dividend performance is 3.86%. Walking in the future, analysts believe how balanced this return is.
Dividend
A year ago, £ 10,000 would buy 360 Greggs shares. And because the company distributed 69 pence per share in dividends, it corresponds to 248 GBP to passive income.
However, at today’s prices, the equation looks completely different. Analysts expect the dividend to fall to 68 pens per share, which means that the investment of 360 shares is to generate £ 244.
This is not good for anyone who bought the shares a year ago. But today’s action price is 36% lower than a year ago, more than the expected decrease in dividend.
As a result, the 10,000 GBP investment in Greggs would buy 556 shares today – sufficient to generate 384 pounds of passive income. And the forecast is better at 2026.
| Year | Dividend for action | Growth % | Performance (shares price $ 17.91) |
|---|---|---|---|
| 2024 | 69p | – – | 3.85% |
| 2025 | 68p | -1.44% | 3.80% |
| 2026 | 70.7p | 3.97% | 3.95% |
Analysts expect challenges this year to be low -term. As a result, the dividend is expected to reach 70.7 pence – above its levels 2024 – in 2026.
This would mean 3.93% dividend profitability based on today’s prices (it is enough for an investment in the amount of 10,000 GBP to generate 393 GBP of passive income). This is not bad, but how is it likely?
Perspectives
I think investors have a good reason to expect growth over the next few years. I thought the latest earning report was quite bad, but I don’t consider it a problem in a low period.
The challenge that Greggs faces was a destitute sales raise. This fell from 13.7% in 2023, to 5.5% in 2024, and now to 1.7% in the first nine weeks 2025.
It’s quite a fall. And although some of them can be postponed on harsh trade conditions, it suggests that Greggs may not be as resistant in a faint economy as some investors could hope.
Nevertheless, in a low period I believe that investors have a reason for a positive one. Although similar sales may be faint, I expect that it will be compensated by a company that opens more stores.
This is not balanced in the long term. But it happened in 2025 and I expect something similar in 2026, because Greggs is still making progress towards 3000 sales points.
As a result, the forecast of 70.7 pence per share in 2026 seems likely. And 3.85% dividend performance at a time when 10-year government bonds in Great Britain give 4.75%, means growth expectations.
Long -term investing
From the income point of view, I think Greggs shares look good in the next few years. But with my own investing, I try to look beyond it in the long run.
Ultimately, Greggs will reach the final capacity in terms of stores. Since then, growth will have to come from a higher sales similar to similar, so the weakness of this record is a real problem.
In my opinion, the question is whether the price of shares is low-cost enough to make it a good investment. I am undecided and there are other possibilities that stand out more, so I will not buy now.
