Dollarama dividend: cash coverage and yield
Dollarama pays C$0.12 per share each quarter, or C$0.48 annualized. Dollarama generated C$1.171 billion of its own free cash flow over the latest four-quarter period, but that measure is not automatically cash available for dividends or repurchases.
How much does Dollarama pay its shareholders?
Base dividends rise from C$0.52 per share in the first window to C$0.60 in the second. They reach C$0.68 in the final window. The bear path holds at C$0.48 before a modest increase, while the bull path reaches C$0.80. The current quarterly dividend is C$0.12, or C$0.48 annualized. Dividends have risen throughout the supplied history, but buybacks, Australia and the Calgary hub compete for cash.
| Feb 2026 | Feb 2025 | Jan 2024 | Jan 2023 | Jan 2022 | |
|---|---|---|---|---|---|
| EPS, diluted | 4.73 | 4.16 | 3.56 | 2.76 | 2.18 |
| Free cash flow per share | 3.55 | 3.47 | 3.05 | 1.36 | 2.37 |
| − Dividends paid, per share | 0.41 | 0.35 | 0.27 | 0.22 | 0.20 |
| − Share buybacks, per share | 3.12 | 3.88 | 2.31 | 2.37 | 3.48 |
| = FCF not paid out, per share | 0.02 | 0.47 |
Is Dollarama’s dividend covered by its cash?
Dollarama invested in stores and infrastructure, then returned nearly all available cash to shareholders.
The latest four-quarter period produced C$1.171 billion of Dollarama’s own free cash flow. Acquisition payments, equity contributions and other investments sit outside that measure, so it is not automatically cash available for dividends or repurchases.
| Feb 2026 | Feb 2025 | Jan 2024 | Jan 2023 | Jan 2022 | |
|---|---|---|---|---|---|
| Free cash flow | 983,526 | 974,370 | 866,543 | 394,470 | 722,359 |
| − Dividends paid | 113,196 | 97,244 | 76,131 | 62,975 | 60,464 |
| − Share buybacks | 864,384 | 1,090,712 | 655,869 | 688,996 | 1,059,918 |
| = Free cash flow not paid out | 5,946 | 134,543 | |||
| Paid out, % of free cash flow | 99.4% | 121.9% | 84.5% | 190.6% | 155.1% |
What could change Dollarama’s dividend?
Canadian comparable-store sales and transactions are the first test during 2027–2029. Results below the 4.0%–4.5% guidance range would move the forecast toward the bear case; stronger traffic and net openings would support the bull case.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Earnings | 1,505 (1,394 / 1,584) | 1,628 (1,424 / 1,785) | 1,751 (1,496 / 2,014) |
| Shares (millions) | 264 (266 / 263) | 260 (265 / 257) | 256 (264 / 252) |
| Dividends per share | 0.52 (0.48 / 0.52) | 0.60 (0.48 / 0.64) | 0.68 (0.52 / 0.80) |
| Price to earnings | 33.00 (24.00 / 39.00) | 31.00 (22.00 / 40.00) | 30.00 (20.00 / 40.00) |
What is Dollarama’s dividend yield today against its price?
Dollarama’s valuation demands continued earnings growth while offering little immediate cash return.