IG Group Holdings plc (LON: IGG): Buyback Momentum and Dividend Strength in Focus

IG Group Holdings plc (LON: IGG) continued its £125 million share buyback today, repurchasing more stock as its FTSE 250 shares trade around 1,135p and feature in new rankings of top UK dividend stocks. Here’s what investors need to know on 27 November 2025.

Today’s key IG Group headlines (27 November 2025)

1. Fresh “Transaction in Own Shares” RNS

This morning, IG Group Holdings plc announced another daily tranche of its ongoing share buyback. The company disclosed that it purchased 45,260 ordinary shares on 26 November 2025, at prices between 1,028p and 1,050p per share, with a volume‑weighted average price of roughly 1,035p. ^[1]

These shares were bought from Morgan Stanley & Co. International Plc under the pre‑set instructions issued when the £125 million buyback programme began in early September. Following this latest purchase, IG now holds about 19.6 million shares in treasury, with roughly 341.9 million shares remaining in issue excluding treasury stock. ^[2]

2. IGG share price snapshot

On 27 November 2025, IGG shares closed around 1,135p (bid) to 1,137p (offer), up a fraction on the day (about 0.1%), while the FTSE 250 itself rose around 0.5%. ^[3]

At this level, external data providers estimate that IGG trades on roughly a single‑digit to low‑double‑digit P/E ratio (around 9x) with a forward dividend yield in the mid‑4% range on the London line, and closer to 6% on the US ADR. ^[4]

3. Named among top UK dividend stocks

Also today, analysis from Simply Wall St highlighted IG Group Holdings (LSE: IGG) as one of the “Top UK Dividend Stocks To Watch in November 2025”, placing it alongside other high‑profile UK payers. ^[5]

In that screen, IG:

Shows a dividend yield of about 4.1–4.2%,
Has 10+ years of largely stable and growing dividends, and
Pays out only around 44% of earnings and about one‑third of cash flow as dividends, signalling healthy cover. ^[6]

The article also notes that the shares appear to be trading below estimated fair value, with modest revenue growth forecast but slightly softer earnings expected over the next few years. ^[7]

4. Buyback programme under the spotlight

Yesterday, TipRanks reported that IG had repurchased an additional 116,946 shares as part of the same buyback, and now holds over 19 million shares in treasury. Their AI “Spark” tool currently labels the stock an “Outperform”, with a Buy rating from the most recent analyst and a price target of £13.50. ^[8]

Taken together, today’s RNS and yesterday’s buyback update reinforce a clear message: capital returns via buybacks and dividends are front and centre of IG’s current equity story.

How big is IG Group’s buyback – and how far through is it?

At its FY25 results in July, IG Group announced a new £125 million share buyback programme, on top of an already progressive dividend policy. ^[9]

A later trading update on 25 September 2025 showed that the programme: ^[10]

Begun on 4 September 2025,
Is scheduled to run until 30 January 2026, and
Had already seen around 1.5 million shares repurchased for £16.8 million by late September.

Today’s “Transaction in Own Shares” RNS confirms that buybacks are continuing at a steady daily pace, with:

45,260 shares bought on 26 November,
At prices just above 1,030p, and
Total treasury shares now around 19.6 million, equivalent to roughly 5.4% of the share count. ^[11]

For remaining shareholders, sustained buybacks at a discount to estimated fair value are earnings‑per‑share (EPS) accretive and support the share price, particularly when paired with a covered and growing dividend.

Dividend story: Why income investors are watching IGG

IG Group’s FY25 annual report and subsequent analysis paint the picture of a business that has moved from a pure growth story to a “cash‑machine plus growth options” profile.

FY25 numbers underpin the payout

For the financial year ended 31 May 2025, IG reported: ^[12]

Total revenue of about £1.08 billion, up roughly 9–10% year‑on‑year,
Net income of around £380 million, up about 24%,
A profit margin close to 36%, and
Basic EPS of about 106p (with adjusted EPS of roughly 114p).

The FY25 dividend per share was 47.2p, modestly higher than FY24, and analysts expect a further increase towards 49p in the coming year. ^[13]

On Simply Wall St’s numbers, IG’s ~4.2% yield sits comfortably above the bottom quartile of UK dividend payers (~2.1%), but a little below the top quartile (~5.6%) – suggesting a blend of income and growth rather than pure high‑yield. ^[14]

Coverage and quality

Dividend quality metrics look supportive:

Earnings payout ratio ~44% – leaving headroom for reinvestment and buybacks.
Cash payout ratio ~33%, indicating that free cash flow comfortably funds dividends. ^[15]
Dividends have been stable and growing for a decade, even through more volatile trading periods. ^[16]

Additional screens – such as a recent “3 UK Dividend Stocks With Yields Up To 4%” piece – have also flagged IGG’s yield and consistent distribution policy as notable in the current market. ^[17]

For income‑focused investors in 2025, that combination of solid cover, long track record and ongoing buybacks is exactly what many are searching for.

Business backdrop: Q1 FY26 softness, but customer growth and new assets

Today’s news sits against a backdrop of slower headline revenue growth in the new financial year, but strong customer and platform metrics.

Q1 FY26 trading update – revenue down, activity indicators up

On 25 September 2025, IG issued its Q1 FY26 trading update for the three months to 31 August 2025: ^[18]

Net trading revenue was £231.9m, down 4% year‑on‑year and 8% quarter‑on‑quarter, reflecting quieter markets.
Net interest income fell 24% year‑on‑year to £28.0m, as lower interest rates and higher pass‑through to clients kicked in.
Total revenue of £259.9m was down 7% versus both Q1 FY25 and the prior quarter.

However, the underlying franchise metrics were more positive:

Average monthly active customers increased 3% year‑on‑year.
First trades surged 42% year‑on‑year and 2% quarter‑on‑quarter, as IG stepped up marketing and broadened its product set. ^[19]

The integration of UK neobroker Freetrade – acquired for £160m and completed in April 2025 – also boosted non‑leveraged stock and ETF activity, helping push assets under administration in IG’s investments business to £7.6 billion, of which £3.0 billion relates to Freetrade. ^[20]

Strategic pivot toward crypto and younger investors

IG has been deliberately diversifying its revenue mix:

Freetrade acquisition brings a younger, self‑directed investor base and strengthens IG’s UK share‑dealing proposition. ^[21]
In September 2025, IG agreed to acquire Independent Reserve, a regulated Australian cryptocurrency exchange, for an initial enterprise value of about A$178m (roughly £85–90m), initially taking a 70% stake with options over the remainder. ^[22]
Morningstar and other outlets have framed the deal – along with the earlier sale of the US‑based Small Exchange for about $100m – as part of IG’s broader crypto and digital‑asset push, particularly in Asia‑Pacific. ^[23]

Management continues to guide that FY26 performance should broadly match market expectations for both total revenue and cash EPS, with net interest income expected to land around £100m for the year despite lower rates. ^[24]

Important structural change: New December year‑end

Another relevant context for today’s news is that IG is in the middle of changing its financial year end.

On 4 November 2025, the group confirmed that it will move its year‑end from 31 May to 31 December with immediate effect. ^[25]

That means:

The current financial period will be a seven‑month “stub” year to 31 December 2025.
IG will publish:
- A trading update for the three months to 30 November 2025 in December 2025,
- Final results for the seven‑month period plus an update for the three months to 28 February 2026 in March 2026, and
- Thereafter, full‑year results each March and interims in August. ^[26]

Crucially for income investors, the group has stated that a final dividend for the transitional seven‑month period will still be announced alongside those March results and that the dividend policy is unchanged. ^[27]

This calendar reset also explains why some third‑party data services still show a “May year‑end” historically while investors are now looking ahead to a December‑year reporting cycle.

How the market is valuing IG Group today

Pulling together today’s price, recent results and external analysis:

Share price: ~1,135p at close on 27 November 2025. ^[28]
Market capitalisation: around £3.5 billion, according to TipRanks’ latest snapshot. ^[29]
Valuation: data aggregators such as Finbox suggest a P/E of roughly 9x and a dividend yield around 4.6% on the London listing, with net income in the region of £380m. ^[30]
Analyst stance: TipRanks notes the most recent analyst rating on IGG as Buy with a £13.50 price target, while its AI “Spark” model scores the stock 71/100 and tags it as Outperform, highlighting strong profitability and a solid balance sheet but flagging slower revenue and cash‑flow growth as watch‑points. ^[31]

Put simply, IG currently trades at what looks like a discount to its own recent growth and returns profile, but the market is clearly weighing:

Softer trading volumes and net interest income in FY26,
Integration and execution risk around Freetrade and Independent Reserve, and
The broader regulatory and macro backdrop for leveraged trading and crypto.

Key risks and catalysts to watch after today

Looking beyond today’s RNS and dividend headlines, investors following IG Group may want to keep an eye on:

December 2025 trading update
The first post‑year‑end‑change update (covering the three months to 30 November) will give an early read on how Q2 FY26 is progressing in terms of revenue, client activity and the buyback’s progress. ^[32]
Seven‑month transitional results in March 2026
These results should crystallise how much of FY25’s margin uplift has carried through and how quickly Freetrade and Independent Reserve are contributing to revenue and profit. ^[33]
Regulatory and macro environment
IG’s earnings are highly sensitive to market volatility, interest rates and regulatory changes. Earlier coverage from The Times and others has emphasised how episodes of heightened volatility can push revenue and profits above expectations, but also how regulators continue to scrutinise leveraged trading and retail speculation. ^[34]
Capital allocation discipline
With a £125m buyback, a growing ordinary dividend, and acquisitions in both stockbroking and crypto, management’s ability to balance shareholder returns with strategic investment will remain in focus.

Bottom line for 27 November 2025

On 27 November 2025, the story around IG Group Holdings plc is less about dramatic new developments and more about execution of a clear strategy:

Return cash via meaningful buybacks and a progressive dividend,
Broaden the platform beyond leveraged trading into commission‑free investing and digital assets, and
Stabilise growth after a tougher FY24 by rebuilding revenue and margins.

Today’s “Transaction in Own Shares” RNS and fresh dividend‑screen inclusion reinforce IGG’s positioning as a yield‑supported, capital‑return story in the FTSE 250, trading on a discount‑style valuation while management continues to reshape the business.

This article is for information and news purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Always do your own research or consult a regulated financial adviser before making investment decisions.