The FTSE 100‘s home to some of the most generous dividend-paying companies in the world. And some pay eye-watering amounts per share.
Take Games Workshop (LSE:GAW) as a prime example. The company currently pays £4.85 per share each year. And that means owning just 103 shares is enough to unlock just over £500 in annual passive income.
So how much do 103 shares actually cost? And is the dividend really as good as it looks?
Crunching the numbers
At today’s share price of around 18,740p, buying 103 shares will set an investor back around £19,302.20. That’s a hefty initial outlay. But even modest investors can gradually build to this threshold over time by drip feeding money in each month.
What’s more, a £500 passive income could be just the tip of the iceberg. Games Workshop has increased its shareholder payouts for almost four years in a row. And with core revenue still growing strongly in 2026, there’s a compelling case that the dividends could keep rising from here.
A business that keeps delivering
On paper, a niche plastic miniatures manufacturer doesn’t exactly scream superb investment opportunity. But when digging deeper into the numbers, the business is remarkably brilliant.
The most recent half-year results hit yet another record high. Core revenue surged 17.3% to £316.1m, operating profit climbed 11.3% to £140.4m, and gross margins expanded from 67.5% to 69.4%. Considering all the pressure from US tariffs and higher inflationary forces, seeing margin expansion from a discretionary retail business is impressive.
Skip ahead to the most recent trading update for its full 2026 fiscal year (ending in May), management confirmed that the record sales and earnings have continued, with core revenue expected to be “not less than £625m”, up from £565m the year before, paired with pre-tax profits of at least £265m.
What could go wrong?
Probably one of the most contentious aspects of this business is its licensing revenues. This is a very high-margin source of income for the business. But it’s also exceptionally lumpy, and we’ve already seen licensing stumble drastically in recent years.
The massive success of Space Marine 2 saw Games Workshop’s royalty income surge. But with no other major video game releases in the following year, licensing revenues have effectively been slashed in half.
This isn’t a major surprise given that management warned of this possibility. But it nonetheless creates some tough profit comparables for the business.
Looking ahead, licensing income is expected to start bouncing back thanks to the upcoming releases of Dawn of War 4 and Total War: Warhammer 40,000. But if these video games fail to resonate with players, the company could once again disappoint with licensing profits as well as potentially harm the Warhammer brand among the uninitiated.
So is this a risk worth taking?
The bottom line
Management’s no stranger to lumpy cash flows. And with the company delivering record results in the midst of a cost-of-living crisis, it perfectly highlights its ability to execute and stay disciplined.
That’s a rare trait. And it’s exactly what allows businesses to keep growing their dividends for potentially decades in a row. That’s why I’ve already added Games Workshop to my income portfolio. And it’s not the only FTSE 100 stock on my radar right now…
Should you invest £5,000 in Games Workshop Group Plc right now?
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Zaven Boyrazian owns shares in Games Workshop.
