The FTSE 100 index of leading British shares contains some magnificent dividend payers.

In fact, most FTSE 100 shares pay dividends. That makes sense, as many are mature businesses with sizeable free cash flows, such as British American Tobacco and Associated British Foods.

But there are some exceptions. Here is one FTSE 100 share that currently doed not pay a dividend – and why.

Well-known fashion brand

High-end rag merchant Burberry (LSE: BURB) has had its ups and downs over the past few years. As of now, it has zero dividend.

It has not always been that way. Burberry’s 2025 dividend per share, for example, was the same as the prior year’s had been, at 61p. That would be equivalent to a 5.3% yield at the current Burberry share price.

The brand has cachet, global distribution, and a fan base. But it has had difficulties. That reflects the fact that it is expensive enough to be seen as a luxury buy by many shoppers, but not so costly that its shoppers tend to ignore the price even when times are tough. It therefore is a natural candidate to be squeezed in the middle in a weak economy.

That, combined with some past creative choices not being as popular as hoped, explains why the dividend was cut last year. It also helps explain some of the volatility in the share price.

The share price has moved around a lot

Burberry is up only 3% over the past year and is close to half of its share price five years ago.

But that high-level summary misses some of the tremendous gains some shareholders have seen over the past couple of years.

The Burberry share price more than doubled between September 2024 and March last year. It then fell sharply, but jumped 93% between April and July last year.

Weak consumer confidence remains a risk to the trenchcoat maker’s sales. Sales last year fell 2%, though that reflected a weaker exchange rate.

Free cash flow more than doubled. But at £120m, it remains well below what I think the storied brand could achieve over the longer term.

Could the dividend come back?

Once cash flows are high enough, I expect the company to bring back dividends.

But it is not there yet and there is no telling how long it might take to get there.

At the current share price, I do not find the valuation especially attractive. For now, I will not be adding this FTSE 100 firm back into my portfolio.

Still, given how far Burberry has fallen in the past five years and the fact its underlying business fundamentals continue to look decent to me, I am keeping an eye on it.

At the right price, with or without a dividend, I would happily add this share back into my portfolio. I reckon the business is attractive and has long-term potential. I just do not want to overpay. So, for now, I am watching – but not buying.

Should you invest £5,000 in Burberry Group Plc right now?

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And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Burberry Group Plc made the list?

Christopher Ruane does not hold any positions in the companies mentioned.