Canadian Tire dividend: history and cash
Canadian Tire pays an annual dividend of C$7.13 per share in 2025. Canadian Tire's dividend depends on cash surviving investment and financing needs as 2025 cash conversion weakened.
How much does Canadian Tire pay in dividends?
The dividend starts at C$7.20 annualized. The base case reaches C$7.50, consistent with the increase from C$4.83 in 2021 to C$7.13 in 2025. The bear case freezes it at C$7.20 because retail free cash flow fell to C$397.9m and bad-loan losses reached C$517.8m. The bull case reaches C$8.00 if cash generation improves.
| Jan 2026 | 2024 | 2023 | 2022 | Jan 2022 | |
|---|---|---|---|---|---|
| EPS, diluted | 10.57 | 14.91 | 3.27 | ||
| FCF per share — the company's own count | 7.31 | 21.38 | |||
| − Dividends paid, per share | 6.64 | 6.45 | 6.39 | 5.49 | 4.42 |
| − Share buybacks, per share | 8.58 | 0.53 | 6.66 | 7.17 | 2.14 |
What this means. The company's free cash flow per share is an adjusted number, not simply the cash left after all spending, and it includes dividends received from its lending business.
Is Canadian Tire's dividend covered by its cash?
That reversal drove most of the fall in available Retail free cash flow, from C$1,192.2 million in 2024 to C$397.9 million in 2025. The company’s bridge includes capital spending, lease payments and distributions from Financial Services and CT REIT, so it measures cash available to Retail from the wider system rather than simple consolidated operating cash flow.
| Jan 2026 | 2024 | 2023 | 2022 | Jan 2022 | |
|---|---|---|---|---|---|
| − Paid to minority owners | 76.9 | 70.3 | 142.1 | 143.0 | 103.5 |
| − Dividends paid | 361.7 | 359.8 | 360.8 | 325.8 | 271.1 |
| − Share buybacks | 467.2 | 29.8 | 376.1 | 425.4 | 131.1 |
| Cash and short-term investments | 174.4 | 172.9 | 85.6 | 102.0 | 707.6 |
| − Total debt | 951.5 | 1,150.8 | 2,075.9 | 979.1 | 1,009.9 |
| Paid to shareholders | 828.9 | 389.6 | 736.9 | 751.2 | 402.2 |
What this means. The company's own net debt is lower because it subtracts long-term investments and uses a different cash allocation than our calculation.
What could change Canadian Tire's dividend?
The August 13, 2026 reduction in the operating-capital forecast showed tighter capital allocation. If that discipline produces savings without weakening store productivity, the base case gains support. If transformation costs continue without measurable returns, earnings and the multiple move lower. True North promised more than C$2bn of investment and C$100m of annualized savings, so delivery against those commitments matters.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Earnings | 778 (653 / 814) | 810 (643 / 882) | 843 (632 / 937) |
| Shares (millions) | 51.40 (52.40 / 51.00) | 50.60 (52.60 / 49.80) | 49.80 (52.80 / 48.60) |
| Dividends per share | 7.30 (7.20 / 7.40) | 7.40 (7.20 / 7.70) | 7.50 (7.20 / 8.00) |
| Price to earnings | 15.00 (13.00 / 17.00) | 15.00 (11.50 / 18.50) | 15.00 (10.00 / 20.00) |
What yield does Canadian Tire's dividend offer today?
Book value is also imperfect for a group whose assets include stores, property and loyalty relationships. The dividend is more tangible, but it remains valuable only if cash survives investment and financing needs.