Avery Dennison dividend
MyStockButler's October 2026 analysis: Avery Dennison pays a quarterly dividend of $1.00, raised in April 2026. In 2025, its real free cash flow was $684.5 million, while dividends, repurchases and acquisitions together exceeded free cash flow.
How much does Avery Dennison pay shareholders?
The balance became more demanding in 2025. Dividends, repurchases and acquisitions together exceeded free cash flow, so debt rose and cash fell. The board added a $750 million repurchase authorization in April 2025. It raised the quarterly dividend to $1.00 in April 2026. Those actions supported shareholders, but they also left less internally generated cash for investment or debt reduction.
Dividends rise from $4.12 per share to $4.60 in the base case. The forecast repeats the latest measured increase, while the bear case holds the quarterly rate at $1.00 and the bull case assumes larger annual increases. The record of annual increases supports the base case, but debt and investment needs justify the pause and faster-growth alternatives.
| 2025 | 2024 | 2023 | 2022 | Jan 2022 | |
|---|---|---|---|---|---|
| Free cash flow per share | 9.10 | 9.05 | 6.91 | 8.31 | 9.45 |
| − Dividends paid, per share | 3.68 | 3.44 | 3.17 | 2.91 | 2.63 |
| − Share buybacks, per share | 7.31 | 3.07 | 1.70 | 4.62 | 2.16 |
| = FCF not paid out, per share | 2.54 | 2.05 | 0.78 | 4.66 | |
| = Paid out more than FCF, per share | 1.89 |
How much would Avery Dennison's dividend pay you?
$10,000 invested in Avery Dennison at its 2.2% dividend yield (our report of October 27, 2026) pays $220.00 in the first year, before tax. If its dividend per share keeps changing 8.8% a year, as it did from Jan 2022 to 2025, and the dividends are reinvested, year 10 pays $619.25, with $3,837.80 received in all.
Before tax. Past dividend growth is not a promise. Information only, not investment advice.
Is Avery Dennison's dividend covered by its cash?
A “real” free-cash-flow view deducts stock compensation as an economic cost to shareholders, producing $684.5 million in 2025. Avery’s own measure was $707.1 million, up from $699.5 million, because it also deducts software and deferred spending while adding specified proceeds. Different definitions can therefore show improvement while operating cash weakens.
| 2025 | 2024 | 2023 | 2022 | Jan 2022 | |
|---|---|---|---|---|---|
| Free cash flow | 712.4 | 730.0 | 560.7 | 682.9 | 791.8 |
| − Dividends paid | 288.4 | 277.5 | 256.7 | 238.9 | 220.6 |
| − Share buybacks | 572.3 | 247.5 | 137.5 | 379.5 | 180.9 |
| = Free cash flow not paid out | 205.0 | 166.5 | 64.5 | 390.3 | |
| = Paid out more than the free cash flow | 148.3 | ||||
| Paid to shareholders | 860.7 | 525.0 | 394.2 | 618.4 | 401.5 |
What this means. The company paid shareholders more than the cash its business generated in 2025, so it had to use savings or borrow money to cover the difference.
What could change Avery Dennison's dividend?
From 2027 through 2029, sustained price recovery, productivity and stronger cash conversion would support higher margins, buybacks and valuation. Persistent price-cost pressure, underused RFID capacity or rising debt would do the opposite.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Earnings | 793 (752 / 834) | 827 (741 / 908) | 863 (739 / 984) |
| Shares (millions) | 74.20 (75.50 / 72.90) | 72.90 (75.20 / 70.70) | 71.60 (74.90 / 68.50) |
| Dividends per share | 4.12 (4.00 / 4.16) | 4.36 (4.00 / 4.48) | 4.60 (4.00 / 4.80) |
| Price to earnings | 18.00 (15.00 / 21.00) | 17.50 (14.00 / 22.00) | 17.00 (13.00 / 23.00) |
What is Avery Dennison's dividend yield today?
At $181.925 a share on October 27, 2026, Avery Dennison is priced for steady earnings that keep becoming cash.