Darden dividend
MyStockButler's October 2026 analysis: Darden pays $693.0 million in dividends from fiscal 2026 free cash flow of $1,119.1 million, so the dividend itself was covered by cash. Darden's first forecast-year dividend is $6.48 per share, with the base case rising to $7.00 and then $7.56, while dividends and buybacks together exceeded free cash flow by $245.6 million.
How much does Darden pay per share?
All cases pay $6.48 in the first forecast year, based on the declared quarterly rate. The base rises to $7.00 and then $7.56, roughly matching the historical 8% growth rate. The bear stays at $6.48. The bull rises to $7.20 and then $8.00. Management supports continued dividend growth, but dividends compete with capital spending, debt and buybacks.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Shares (millions) | 111 (112 / 109) | 108 (112 / 106) | 106 (111 / 103) |
| Dividends per share | 6.48 (6.48 / 6.48) | 7.00 (6.48 / 7.20) | 7.56 (6.48 / 8.00) |
| Price to earnings | 19.00 (16.00 / 22.00) | 19.00 (15.00 / 23.00) | 19.00 (14.00 / 24.00) |
Is Darden's dividend covered by its cash?
Darden generated more free cash flow, but it distributed even more. Free cash flow rose from $887.7 million in fiscal 2022 to $1,119.1 million in fiscal 2026. Yet dividends and buybacks exceeded it every year. In fiscal 2026, dividends were $693.0 million and repurchases were $671.7 million. Together, they exceeded free cash flow by $245.6 million.
| May 2026 | May 2025 | May 2024 | May 2023 | May 2022 | |
|---|---|---|---|---|---|
| Free cash flow | 1,119.1 | 1,062.4 | 1,020.5 | 987.9 | 887.7 |
| − Dividends paid | 693.0 | 658.5 | 628.4 | 589.8 | 563.0 |
| − Share buybacks | 671.7 | 418.2 | 453.9 | 458.7 | 1,071.3 |
| = Paid out more than the free cash flow | 245.6 | 14.3 | 61.8 | 60.6 | 746.6 |
| Paid out, % of free cash flow | 121.9% | 101.3% | 106.1% | 106.1% | 184.1% |
What this means. The company paid shareholders more than the cash its business made in every year, so it had to use savings or borrow money to cover the difference.
What is Darden's dividend yield today?
Free cash flow is the cash left after a company pays for the investment needed to maintain and expand its restaurants. In fiscal 2026, Darden generated $1,853.1 million from operations and spent $734.0 million on land, buildings and equipment. That left roughly $1.12 billion before separately counted software spending and other uses. Its 4.6% free cash flow yield uses fiscal 2026 cash flow divided by the current market value of the shares, while the 3.0% dividend yield represents the cash paid directly to shareholders.
| Today (Oct 21, 2026) | |
|---|---|
| Share price | 214.555 |
| Market value (calculated) | 24,275.4 |
| Free cash flow yield, fiscal 2026 basis (calculated) | 4.6% |
| Dividend yield (calculated) | 3.0% |
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.