Danaher dividend: payment, cash cover and yield
Danaher pays $0.40 per share quarterly, or $1.60 annualized; its positive free cash flow supports no cut. Danaher generated $5,260 million of free cash flow in 2025, while higher debt makes a pause credible.
How much does Danaher pay in dividends?
The dividend starts from the latest $0.40 quarterly rate, or $1.60 annualized. The base case raises it by $0.12 annually to $1.72, $1.84, and $1.96, close to the company’s record of annual increases but moderated for higher debt. The bear case holds $1.60 throughout; the bull case reaches $1.80, $2.00, and $2.20 as stronger cash generation funds faster growth. Positive free cash flow supports no cut, but debt makes a pause credible.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Earnings | 4,600 (4,100 / 4,900) | 5,100 (4,200 / 5,800) | 5,600 (4,400 / 6,800) |
| Shares (millions) | 699 (704 / 695) | 696 (704 / 688) | 693 (705 / 681) |
| Dividends per share | 1.72 (1.60 / 1.80) | 1.84 (1.60 / 2.00) | 1.96 (1.60 / 2.20) |
| Price to earnings | 25.00 (20.00 / 30.00) | 25.00 (18.00 / 32.00) | 24.00 (17.00 / 32.00) |
Is Danaher’s dividend covered by its cash?
After $1,156 million of capital spending, free cash flow was $5,260 million in 2025. That was nearly unchanged from $5,296 million in the prior year because capital spending fell from $1,392 million. Danaher does not disclose how much capital spending merely maintains the business and how much expands it.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 5,260 | 5,296 | 5,107 | 6,495 | 6,183 |
| − Dividends paid | 878 | 768 | 778 | 693 | 578 |
| − Share buybacks | 3,088 | 5,979 | 0 | 1 | 0 |
| − Acquisitions | 0 | 558 | 5,610 | 582 | 10,901 |
| Paid to shareholders | 3,966 | 6,747 | 778 | 694 | 578 |
What this means. Our “real free cash flow” is lower because it subtracts stock-based pay, so the same shareholder payout becomes a larger percentage.
What could change Danaher’s dividend?
Management guides to 3.0%–4.0% core sales growth and adjusted EPS of $8.45–$8.60 for 2026. For the September 2026 quarter, it guides to 2.0%–3.0% core growth, or 5.0% excluding respiratory testing. Adjusted earnings exclude selected costs, including $1,900 million of acquisition-related intangible amortization for 2026.
What is Danaher’s dividend yield today?
Free cash flow is cash left after operations and necessary capital spending. Danaher generated about $5.1 billion in 2023 and $5.3 billion in 2025, but timing can distort one year’s result: selling inventory without replacing it can release cash without proving stronger demand. The 3.4% free-cash-flow yield therefore needs to be judged against the 5.21% ten-year Treasury yield and against debt repayment, reinvestment, acquisitions and dividends. The 0.7% dividend yield is only the portion paid directly to shareholders.
| Today (Oct 13, 2026) | |
|---|---|
| Share price | 223.23 |
| Free cash flow yield (calculated) | 3.4% |
| Real free cash flow yield (calculated) | 3.2% |
| Dividend yield (calculated) | 0.7% |
What this means. The enterprise value is higher than the market value because it includes the company's debt and subtracts its cash, showing what it would cost to buy the whole business.