New Oriental dividend: history and cash cover
MyStockButler's October 2026 analysis: New Oriental paid US$0.12 per share in FY2026, after US$0.06 in FY2025 and zero in FY2023 and FY2024. Its cash generation recovered, while its policy dedicates at least 50% of the preceding year’s net income attributable to New Oriental shareholders to dividends and buybacks.
How much does New Oriental pay per share?
The dividend stays at $0.20 per share in the base case. The bear case cuts it to $0.10 after the declared FY2027 payment, while the bull case raises it to $0.24 and then $0.28. The declared FY2027 dividend supports the first year, while dividends were zero in FY2023 and FY2024, US$0.06 per share in FY2025 and US$0.12 in FY2026. The three-year policy commits at least 50% of prior-year net income to dividends and buybacks, not to dividends alone.
| May 2026 | May 2025 | May 2024 | May 2023 | |
|---|---|---|---|---|
| EPS, diluted | 0.30 | 0.23 | 0.18 | 0.10 |
| Real free cash flow per share | 0.43 | 0.36 | 0.45 | 0.44 |
| − Dividends paid, per share | 0.06 | 0.06 | 0.00 | 0.00 |
| − Share buybacks, per share | 0.14 | 0.27 | 0.04 | 0.11 |
| = FCF not paid out, per share | 0.28 | 0.07 | 0.49 | 0.38 |
What this means. The company’s free cash flow per share is higher because it does not subtract the value of shares given to employees as pay; we subtract it because those shares reduce each investor’s share of the company.
Does New Oriental’s cash cover its dividend?
Cash generation recovered as the replacement businesses developed. Capital expenditures rose from US$143.0 million in fiscal 2023 to US$283.4 million in fiscal 2024. They were US$246.9 million in fiscal 2026. Free cash flow means the cash left after operating cash flow and capital spending, so it shows what the business can invest, distribute, or hold after maintaining its long-lived assets.
New Oriental increasingly shared that cash with owners. In July 2025, it adopted a three-year plan to dedicate at least 50% of the preceding year’s net income attributable to New Oriental shareholders to dividends and buybacks. For fiscal 2027, it announced a US$0.20 dividend per common share and a new US$200 million buyback authorization. The preceding US$300 million authorization had been fully used by October 27, 2026.
| May 2026 | May 2025 | May 2024 | May 2023 | |
|---|---|---|---|---|
| Free cash flow | 780.211 | 654.654 | 873.25 | 827.963 |
| − Dividends paid | 95.179 | 98.197 | 0 | 0 |
| − Share buybacks | 230.89 | 445.495 | 62.943 | 191.628 |
| = Free cash flow not paid out | 452.96 | 110.962 | 810.307 | 636.335 |
| Paid to shareholders | 326.069 | 543.692 | 62.943 | 191.628 |
| Paid out, % of free cash flow | 41.8% | 83.1% | 7.2% | 23.1% |
What this means. Cash rose by can differ from the change in cash and short-term investments because it includes restricted cash, which is money the company cannot freely use.
What could change New Oriental’s dividend?
A move toward the bear case would begin with licensing or digital-product restrictions during FY2027–FY2028, followed by underfilled capacity or weaker retention. East Buy underperformance and continued platform concentration would add pressure through FY2029. Persistent VIE uncertainty would compress the multiple even if buybacks support EPS.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Earnings | 601 (463 / 658) | 696 (458 / 798) | 773 (459 / 940) |
| Shares (millions) | 1,515 (1,533 / 1,508) | 1,504 (1,531 / 1,487) | 1,496 (1,531 / 1,472) |
| Dividends per share | 0.20 (0.20 / 0.20) | 0.20 (0.10 / 0.24) | 0.20 (0.10 / 0.28) |
| Price to earnings | 11.00 (8.50 / 13.00) | 12.00 (7.50 / 15.00) | 12.50 (7.00 / 17.00) |