Lenovo dividend: history and cash cover
Lenovo's dividend rose from HKD 0.38 to HKD 0.422 over five years. Lenovo generated US$6,181.852 million of free cash flow and paid US$4,741.112 million to shareholders, but payments continued when free cash flow was negative or unusually weak.
How much does Lenovo pay per share?
The base dividend path grows gradually from the latest annual run rate. Dividends rose from HKD 0.38 to HKD 0.422 over five years. The forecast uses 3.5% annual growth because Lenovo maintained payments through weak periods, but recent free cash flow was negative US$22.264 million. The bear holds a pressured payout near US$0.04 per share; the bull uses 7% growth.
| Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | |
|---|---|---|---|---|---|
| − Dividends paid, per share | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 |
| = FCF not paid out, per share | 0.06 | 0.02 | 0.13 | ||
| = Paid out more than FCF, per share | 0.08 | 0.04 |
What this means. The company's own free cash flow per share is 0.21 dollars versus our 0.20 dollars because its total was rounded before being divided by the number of shares.
Does Lenovo's cash cover its dividend?
Free cash flow is the cash left after operating needs and investment in the business have been paid for. Across the five years ended March 2022–2026, Lenovo generated US$6,181.852 million of free cash flow and paid US$4,741.112 million to shareholders before payments to minority owners. The pattern was uneven: payments continued when free cash flow was negative or unusually weak. That means some distributions came from cash already held, borrowing or working-capital changes.
| Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | |
|---|---|---|---|---|---|
| Free cash flow | 2,062.673 | -172.401 | 590.549 | 1,054.618 | 2,646.413 |
| − Dividends paid | 612.512 | 608.351 | 583.273 | 578.795 | 478.822 |
| − Share buybacks | 565.261 | 252.389 | 469.955 | 204.258 | 387.496 |
| = Free cash flow not paid out | 815.033 | 230.318 | 1,732.833 | ||
| Paid out, % of free cash flow | 57.1% | not meaningful | 178.3% | 74.2% | 32.7% |
What this means. The company's own net cash and net debt numbers are rounded to whole millions, while ours keeps the exact reported amounts, so small differences are just rounding.
What could change Lenovo's dividend?
The decision points are whether ISG sustains profit as it grows, whether inventory and collections improve, and whether late-2026 Riyadh production moves from a first product to reliable customer shipments. Memory pressure is expected through the end of 2027. November 19, 2026 interim results will test profit, cash, inventory and collections. January 2028 brings the Alat bond decision: conversion reduces repayment needs but raises the share count.
What is Lenovo's dividend yield against its share price?
| Today (Oct 15, 2026) | |
|---|---|
| Share price | 25.98 |
| Free cash flow yield (calculated) | 4.9% |
| Dividend yield (calculated) | 1.6% |
What this means. The company looks much cheaper on expected profit because the next-year figure uses analysts’ forecast profit, while the last-year figure uses profit already earned.