Research memoAstraZeneca PLC (AZN.L) · LSEMemo of October 10, 2026

AstraZeneca dividend: pay, cash cover and yield

AstraZeneca pays a dividend per share shown across the years, and dividends took a smaller share of real free cash flow by 2025. AstraZeneca's real free cash flow after stock compensation was $7,579 million, with dividends, investment and deal payments competing for cash.

2.0%
Dividend yield
2.3%
Free cash flow yield
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Every number traced to AstraZeneca's filings8 chapters · 17,414 words252 sources cited

How much does AstraZeneca pay per share over the years?

Real free cash flow after stock compensation improved over the five-year period, and dividends took a smaller share of it by 2025. That gave AstraZeneca more room to fund research, acquisitions and manufacturing while continuing its dividend. Stock compensation is treated as a cost here because issuing shares dilutes existing shareholders.

Dividend per share against free cash flow per share (per share in US$)2.47Year to Dec 20214.48Year to Dec 20224.03Year to Dec 20234.45Year to Dec 20245.31Year to Dec 2025Free cash flow per share
What one share getsper share in US$
Year to Dec 2025Year to Dec 2024Year to Dec 2023Year to Dec 2022Year to Dec 2021
Free cash flow per share (calculated)5.314.454.034.482.47
Buybacks per share (calculated)0.000.000.000.000.00
Stock pay per share (calculated)0.460.420.370.400.43
Dividend per share3.203.102.902.902.87
Net share dilution (calculated)-0.1%0.1%0.1%9.3%8.7%

Does AstraZeneca's cash cover its dividend?

Stock-based pay is an economic cost even though it is not paid entirely in cash. Subtracting the $719 million expense gives an analytical “real” free cash flow of $7,579 million. Receivables and inventory also require attention: faster collection, factoring and bank-backed drafts can change the timing of cash without changing the underlying sale.

Where the cash wentUS$ millions
Year to Dec 2025Year to Dec 2024Year to Dec 2023Year to Dec 2022Year to Dec 2021
Real free cash flow (after stock pay) (calculated)7,5796,2995,7206,3742,908
Dividends paid4,9654,6254,4774,3643,856
Shares bought back00000
Acquisitions1,2303,7821,0991,03510,117
Returned to shareholders, share of real free cash flow (calculated)65.5%73.4%78.3%68.5%132.6%

What could change AstraZeneca's dividend?

The dividend begins at $3.30 in FY2026, which management intends to declare under its progressive policy. The base case reaches $3.60 by FY2029, bear reaches $3.39, and bull reaches $3.95. The declared interim dividend of $1.06 supports continuation, but investment and deal payments keep base growth below earnings growth.

The forecast moves toward the bear case if Farxiga generic competition and China price cuts slow revenue during 2027–2029. Weak trial results, restrictive coverage or poor testing and prescribing would reduce launch revenue and the P/E; technical approval alone may not create broad patient use. Investment running ahead of cash generation would add debt while buybacks remain absent.

The forecast's main numbersfiscal years; base case, then bear / bull in brackets; USD millions unless shown
FY2026FY2027FY2028FY2029
Revenue growth7.5 % (5.5 % / 8.5 %)7.0 % (3.0 % / 9.0 %)6.5 % (2.0 % / 9.0 %)6.5 % (1.0 % / 8.5 %)
Earnings per share (GBp per AZN.L share)534 (461 / 555)580 (452 / 637)623 (444 / 729)669 (434 / 821)
Buybacks0.00 (0.00 / 0.00)0.00 (0.00 / 0.00)0.00 (0.00 / 0.00)0.00 (0.00 / 0.00)
Dividend per share (GBp per AZN.L share)249.87 (249.87 / 249.87)257.44 (252.14 / 265.01)265.01 (254.41 / 281.67)272.58 (256.68 / 299.09)

What is AstraZeneca's dividend yield today against its share price?

Revenue has risen across the five-year table, but the latest growth rate is slower than the acquisition-influenced 2021 and 2022 comparisons. Operating margin has improved, although reported profit still moves with impairments, restructuring and other exceptional items; net debt remains substantial. Diluted EPS has risen from a near-zero 2021 base, while the company’s own free cash flow per share is lower after stock-based pay. Valuation is 23.5x trailing P/E and 13.8x next-twelve-month P/E; free-cash-flow yield is 2.3%, dividend yield is 2.0%, and buybacks are absent.

From the full memo · 1. The business

AstraZeneca is a pharmaceutical company: it turns scientific discoveries into prescription medicines and sells them through a healthcare system that sits between the company and the patient. To understand its business, follow a medicine from diagnosis to factory to payer, then follow the dollar back through research, manufacturing and partners.

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