Domino’s dividend: payout and coverage
Domino’s pays $1.99 per quarter, or $7.96 annualized. Its 2025 free cash flow was $671.5 million and real free cash flow was $626.9 million, while recent free cash flow remained positive.
How much does Domino’s pay in dividends?
The latest declared rate is $1.99 per quarter. It annualizes to $7.96. The base case gives dividends per share of $8.56 in the first forecast window. It rises to $9.42 and then $10.36. The bear case holds dividends at $7.96 throughout. The bull case gives $8.76, $10.07 and $11.58.
| 2025 | 2024 | 2023 | Jan 2023 | Jan 2022 | |
|---|---|---|---|---|---|
| − Dividends paid, per share | 6.92 | 6.00 | 4.80 | 4.36 | 3.70 |
| − Share buybacks, per share | 10.45 | 9.42 | 7.60 | 8.14 | 35.05 |
| = FCF not paid out, per share | 2.25 | 1.32 |
What this means. The company's own free cash flow per share is higher because it does not subtract the value of shares given to employees as pay; we subtract it because those new shares reduce what each existing share gets.
Does Domino’s dividend come from free cash flow?
Free cash flow is operating cash after capital spending. In 2025, operating cash of $792.1 million less capital spending of $120.6 million left $671.5 million, above net income. That supports the quality of the reported earnings, but not necessarily their permanence.
Capital spending remains necessary even in a franchised system because Domino’s must maintain technology, supply-chain facilities and company stores. The accounts do not cleanly separate maintenance spending from growth spending. Stock compensation adds another qualification: subtracting $44.6 million of stock pay leaves analytical “real free cash flow” of $626.9 million.
| 2025 | 2024 | 2023 | Jan 2023 | Jan 2022 | |
|---|---|---|---|---|---|
| Free cash flow | 671,504 | 512,012 | 485,468 | 388,083 | 560,034 |
| − Dividends paid | 236,861 | 209,945 | 169,772 | 157,531 | 139,399 |
| − Share buybacks | 357,697 | 329,557 | 269,025 | 293,740 | 1,320,902 |
| = Free cash flow not paid out | 76,946 | 46,671 | |||
| Paid out, % of free cash flow | 88.5% | 105.4% | 90.4% | 116.3% | 260.8% |
What this means. The company sometimes paid shareholders more than the cash it generated, so it had to use savings or borrow money to cover the difference.
What could change Domino’s dividend?
The clearest bear trigger is refinancing before July 2027. Higher interest expense would reduce net income, free cash flow and repurchase capacity.
The base case would gain support if management delivered its restrained sales and store outlook while operating income continued to grow. A completed refinancing at manageable rates would also preserve the assumed moderate buyback and dividend paths.
What is Domino’s dividend yield today?
| Today (Oct 15, 2026) | |
|---|---|
| Share price | 295.89 |
| Free cash flow yield (calculated) | 6.9% |
| Real free cash flow yield (calculated) | 6.4% |
| Dividend yield (calculated) | 2.7% |
What this means. Price to book is not meaningful because the company owes more than it owns.