Quest Diagnostics dividend
MyStockButler's October 2026 analysis: Quest Diagnostics pays $0.86 per share quarterly, with a current dividend rate of $3.44 annualized. Its free cash flow supports the dividend, but acquisitions, debt repayment and investment also compete for that cash.
How much does Quest Diagnostics pay in dividends?
The latest large distribution decision came on February 10, 2026. Quest added $1 billion to its share-repurchase authorization and raised its quarterly dividend from $0.80 to $0.86 per share. Those decisions return capital, but their success depends on what the company could have earned by investing the money elsewhere.
The current dividend rate is $3.44 annualized. The base path rises to $3.50 in 2027 and $3.76 in 2028. It reaches $4.05 in 2029. The bear holds $3.44 throughout, while the bull reaches $4.20 by 2029. The base follows five years of uninterrupted increases and strong free cash flow, though PAMA, Nova, and debt compete for cash.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Revenue | 11,035 | 9,872 | 9,252 | 9,883 | 10,788 |
| Revenue growth (calculated) | 11.8% | 6.7% | -6.4% | -8.4% | 14.3% |
| Dividend per share | 3.20 | 3.00 | 2.84 | 2.64 | 2.48 |
What this means. The 11.8 percent sales growth in 2025 includes sales from recently bought businesses, so growth from the company’s existing businesses was only 5.3 percent.
Is Quest Diagnostics’s dividend covered by its cash?
In 2021 and 2022, Quest paid shareholders more than that year’s free cash flow. Accumulated cash and proceeds from selling assets helped fund the difference, but that pattern could not continue indefinitely without another source of money.
The balance shifted in 2025. Acquisition spending fell, debt repayment resumed, and net debt declined to $5.3 billion at year-end. That remained above the $3.1 billion recorded at the end of 2021, but it demonstrated renewed financial flexibility.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 1,359 | 909 | 864 | 1,314 | 1,830 |
| − Dividends paid | 353 | 331 | 314 | 305 | 309 |
| − Share buybacks | 450 | 151 | 275 | 1,408 | 2,199 |
| = Free cash flow not paid out | 500 | 380 | 218 | ||
| = Net debt | 5,251 | 5,668 | 4,027 | 3,665 | 3,140 |
What this means. In 2022 and 2021, the company paid shareholders more cash than it generated, so it had to use savings or borrow money.
What could change Quest Diagnostics’s dividend?
The bear case gains weight in 2027 if PAMA removes roughly $120 million of revenue and costs fail to adjust. Nova conversion spending would also matter if benefits are delayed during 2027–2029.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Earnings | 1,459 (1,244 / 1,528) | 1,568 (1,316 / 1,684) | 1,685 (1,381 / 1,844) |
| Dividends per share | 3.50 (3.44 / 3.53) | 3.76 (3.44 / 3.85) | 4.05 (3.44 / 4.20) |
| Price to earnings | 19.30 (17.50 / 21.50) | 19.30 (17.10 / 21.20) | 19.10 (16.80 / 21.00) |