ELC dividend: cash coverage and yield
ELC paid $1.40 per share in fiscal 2026. ELC's reported free cash flow was $1,316 million, against $508 million in dividends.
How much does ELC pay shareholders over time?
The dividend was $1.40 per share in fiscal 2026, down from $2.64 in fiscal 2024. ELC paid $508 million in dividends and also paid $300 million of deferred TOM FORD acquisition consideration. Cash therefore has to fund shareholders, brands, debt and restructuring at once.
| Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | |
|---|---|---|---|---|---|
| − Paid to minority owners, per share | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| − Dividends paid, per share | 1.39 | 1.72 | 2.62 | 2.56 | 2.30 |
| = FCF not paid out, per share | 2.21 | 0.14 | 1.37 | ||
| = Paid out more than FCF, per share | 1.06 | 2.66 |
What this means. The company's own free cash flow per share matches our count, while real free cash flow per share is lower because we subtract shares given to employees as pay.
Does ELC's cash cover its dividend?
Cash from operations was $1,773 million in fiscal 2026. Capital spending was $457 million, leaving reported free cash flow of $1,316 million.
| Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | |
|---|---|---|---|---|---|
| Free cash flow | 1,316 | 670 | 1,441 | 728 | 2,000 |
| − Dividends paid | 508 | 618 | 947 | 925 | 840 |
| − Share buybacks | 0 | 0 | 0 | 184 | 2,130 |
| = Free cash flow not paid out | 808 | 52 | 494 | ||
| Paid out, % of free cash flow | 38.6% | 92.2% | 65.7% | 152.3% | 148.5% |
What this means. In some years, the company paid shareholders more cash than the business generated, so it had to use savings or borrow money to cover the gap.
What could change ELC's dividend?
The dividend stays at $1.40 per share in the base case because the current quarterly rate is $0.35 and management has given no growth target. The bear case keeps annual dividends at $1.40 per share throughout the forecast. The bull case also keeps annual dividends at $1.40 per share throughout the forecast.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Earnings | 1,267 (767 / 1,500) | 1,533 (683 / 1,933) | 1,767 (667 / 2,300) |
| Shares (millions) | 363 (364 / 362) | 364 (365 / 363) | 365 (367 / 363) |
| Dividends per share | 1.40 (1.40 / 1.40) | 1.40 (1.40 / 1.40) | 1.40 (1.40 / 1.40) |
| Price to earnings | 24.00 (18.00 / 30.00) | 23.00 (16.00 / 31.00) | 22.00 (15.00 / 32.00) |
What is ELC's dividend yield today?
Estée Lauder Companies (The) owns beauty brands including Clinique, M·A·C and La Mer, but its shares now depend on a substantial recovery in profit. At $105.50 on October 19, 2026, shareholders value the company at $38,225.05 million.
Free cash flow is more tangible than accounting profit, but it is not the same as the dividend. Fiscal 2026 operating cash flow less capital expenditure left about $1.316 billion, while dividends used $508 million. The difference can repay debt, support reinvestment or remain in reserve. The table shows the price and the main valuation measures an investor is paying for today.