Gallagher dividend
Gallagher’s forecast shows dividends per share rising from $2.95 to $3.15 and then $3.35. Gallagher generated $1,785 million of free cash flow and $1,736 million of real free cash flow in 2025, with cash mainly directed to acquisitions and dividends.
How much does Gallagher pay in dividends?
The base dividend rises from $2.95 per share to $3.15 and then $3.35. The bear holds at $2.80 before a small increase to $2.86, reflecting pressure from debt and integration spending. The bull reaches $3.62 by 2029, requiring an approximately $0.91 quarterly rate. The base remains below the roughly 7.9% historical dividend growth rate because acquisitions compete for cash.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Earnings | 1,686 (1,353 / 1,785) | 1,848 (1,445 / 2,052) | 2,028 (1,540 / 2,339) |
| Shares (millions) | 256 (259 / 254) | 256 (261 / 252) | 256 (263 / 250) |
| Dividends per share | 2.95 (2.80 / 2.95) | 3.15 (2.80 / 3.21) | 3.35 (2.86 / 3.62) |
| Price to earnings | 19.00 (17.00 / 21.00) | 19.00 (16.00 / 22.00) | 18.00 (15.00 / 23.00) |
Does Gallagher’s dividend come from its cash flow?
Cash conversion asks how much reported profit becomes cash from operations. Gallagher’s “real free cash flow” starts with operating cash, subtracts capital spending and then subtracts stock-based pay. In 2025, free cash flow was $1,785 million and real free cash flow was $1,736 million. Real free cash flow represented 12.5% of revenue in 2025, compared with 20.8% in 2024.
For most of the past five years, Gallagher’s cash went mainly toward acquisitions and dividends, while new equity and debt made the AssuredPartners purchase possible.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 1,785 | 2,441 | 1,838 | 1,207.3 | 1,263.8 |
| − Dividends paid | 667 | 525 | 474 | 429.5 | 392 |
| − Share buybacks | 0 | 0 | 0 | 0 | 0 |
| = Free cash flow not paid out | 1,111 | 1,913 | 1,363 | 774.3 | 833.5 |
| − Acquisitions | 15,766 | 1,462 | 3,042 | 764.9 | 3,250.9 |
| Paid out, % of free cash flow | 37.4% | 21.5% | 25.8% | 35.6% | 31.0% |
What could change Gallagher’s dividend?
Management guides to 2026 organic growth of 6% across Brokerage and Risk Management. The split is 5% in Brokerage and 9% in Risk Management. It guides to adjusted Brokerage EBITDAC margin of 35.1%–36.3%, with underlying improvement of 40–60 basis points. AssuredPartners is expected to produce $3,025 million of revenue and $1,057 million of adjusted EBITDAC. Annualized synergies target $160 million by year-end 2026, rising to $325 million by early 2028.
What is Gallagher’s dividend yield at today’s price?
The free-cash-flow yield is modest against the 5.09% US 10-year Treasury yield on October 16, 2026. Dividends are also a small part of the return, while price to book is an imperfect guide for a serial acquirer whose balance sheet contains goodwill and acquired customer relationships.
| Today (Oct 17, 2026) | |
|---|---|
| Share price | 254.88 |
| Free cash flow yield (calculated) | 2.7% |
| Real free cash flow yield (calculated) | 2.7% |
| Dividend yield (calculated) | 1.1% |
What this means. The share price shown for today is actually the closing price from October 16, not a live price on October 17.