Labcorp dividend: pay and coverage
MyStockButler's October 2026 analysis: Labcorp pays $2.88 per share annually, based on a declared quarterly rate of $0.72. Its 2025 free cash flow of $1.2 billion supports the dividend, while debt and competing investment needs limit confidence in faster increases.
How much does Labcorp pay in dividends?
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Revenue | 13,951.7 | 13,008.9 | 12,161.6 | 11,863.9 | 13,136.1 |
| EPS, diluted | 10.46 | 8.84 | 4.33 | 10.94 | 22.52 |
| Dividend per share | 2.88 | 2.88 | 2.88 | 2.16 | 0.00 |
What this means. The 2021 and 2022 numbers were changed to show only the business that remained after Fortrea was spun off, so they may differ from older reports.
How much would Labcorp's dividend pay you?
$10,000 invested in Labcorp at its 0.8% dividend yield (our report of October 29, 2026) pays $80.00 in the first year, before tax. If its dividend stays flat and the dividends are reinvested, year 10 pays $85.95, with $829.42 received in all.
Before tax. Past dividend growth is not a promise. Information only, not investment advice.
Does Labcorp’s cash cover its dividend?
Labcorp used operating cash to support the business, pay shareholders, buy companies, and reduce debt. Free cash flow means cash generated by operations after spending on long-lived assets such as laboratory equipment and facilities; it is cash available for those choices.
By 2025, Labcorp had also repaid debt while drawing down cash and short-term investments. In the first nine months of 2026, it spent $451.8 million on buybacks and $178.1 million on dividends. The board’s July 8, 2026 authorization of another $1 billion permits future repurchases; it does not prove that those purchases will create value. The next test is whether acquisitions themselves earn enough to justify competing for this cash.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 1,206.0 | 1,095.9 | 748.7 | 1,335.5 | 2,424.8 |
| − Dividends paid | 240.7 | 243.1 | 254.0 | 195.2 | 0 |
| − Share buybacks | 450.0 | 250.1 | 1,000.0 | 1,100.0 | 1,668.5 |
| = Free cash flow not paid out | 515.3 | 602.7 | 40.3 | 756.3 | |
| Paid out, % of free cash flow | 57.3% | 45.0% | 167.5% | 97.0% | 68.8% |
What this means. In 2023, the company paid shareholders more than the free cash it generated, so it had to use savings or borrow money to cover the difference.
What could change Labcorp’s dividend?
The dividend begins at $2.88 per share, reflecting the declared quarterly rate of $0.72. The base case raises it to $3.00 and then $3.12 as free cash flow supports modest increases; the bear holds it at $2.88, while the bull reaches $3.12 and then $3.36. The base is supported by 2025 free cash flow of $1.2 billion, but debt and competing investment needs limit confidence in faster increases.
The view would move toward the bear case if 2027 reimbursement changes reduce Diagnostics price and mix, BLS orders convert below recognized revenue, or cash generation disappoints enough to slow buybacks.
What is Labcorp’s dividend yield today?
Free cash flow yield asks how much cash remains after capital spending, while dividend yield measures only the cash distributed to shareholders. The US 10-year Treasury yield was 5.05% on October 28, 2026, giving investors a reference return from government debt. Labcorp’s valuation therefore depends on whether its growth and cash generation justify the risks beyond that reference.
| Today (Oct 29, 2026) | |
|---|---|
| Share price | 360.25 |
| Free cash flow yield (calculated) | 4.1% |
| Dividend yield (calculated) | 0.8% |
What this means. Enterprise value includes the company's debt and subtracts its cash, so it shows what the whole business would cost rather than just the shares.