Northern Trust dividend
MyStockButler's October 2026 analysis: Northern Trust pays $0.88 each quarter, or $3.52 annualized. Northern Trust's 2025 operating cash flow was positive $5.5 billion, but roughly $2.9 billion came from collateral that may later have to be returned, so cash coverage must be read alongside liquidity and settlement obligations.
How much does Northern Trust pay in dividends?
The dividend rises gradually from the current annualized $3.52 to $3.88 per share in the base case. The bear holds at $3.52, while the bull reaches $4.08. The current quarterly rate is $0.88. The base path reflects the company’s record of annual dividends rising from $2.80 in 2021 to $3.10 in 2025. A 100% total payout target supports distributions but includes buybacks, so it does not guarantee dividend growth.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| EPS, diluted | 8.74 | 9.77 | 5.08 | 6.14 | 7.14 |
| − Dividends, per share | 3.10 | 3.00 | 3.00 | 2.90 | 2.80 |
| − Share buybacks, per share | 0.17 | ||||
| = Kept, per share | 3.07 |
What this means. Blank share buyback rows do not mean no buybacks happened; the report could not separate company repurchases from shares withheld for employee taxes.
Is Northern Trust's dividend covered by its cash?
Operating cash flow swung from negative $486 million in 2024 to positive $5.5 billion in 2025. A roughly $2.9 billion collateral inflow helped drive that change. Because collateral may later have to be returned, it is not freely distributable profit. Liquidity for withdrawals, settlements and collateral obligations comes first.
Capital returns became more assertive. On July 22, 2025, the board authorised up to $2.5 billion of common-share repurchases, although authorisation was permission rather than a promise. Northern Trust repurchased 11.0 million shares in 2025 for $1.3 billion, at an average price of $115.72. Fewer shares give each continuing shareholder a larger claim on future earnings, but only if the bank buys at sensible prices and retains enough capital for growth and losses. The quarterly common dividend rose to $0.88 on July 21, 2026.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Net income | 1,736.9 | 2,031.1 | 1,107.3 | 1,336.0 | 1,545.3 |
| − Dividends declared on common shares | 600.5 | 608.4 | 630.2 | 613.0 | 593.9 |
| − Share buybacks | 35.4 | ||||
| = Kept to grow and build capital | 645.8 | ||||
| Dividend payout ratio — its own | 35.5% | 30.7% | 59.1% | 47.2% | 39.2% |
What this means. The company's own adjusted profit removes some costs, and its payout percentage counts only dividends, while our count includes dividends and share buybacks.
What could change Northern Trust's dividend?
The base view would strengthen if 2027 NII and revenue delivery matched management’s outlook, while positive operating leverage supported gradual margin improvement through 2029. Buybacks would remain supportive, but capital requirements would limit payout flexibility.
What is Northern Trust's dividend yield today?
Dividends and buybacks return capital to shareholders, but a bank cannot distribute every dollar it earns. Northern Trust’s Common Equity Tier 1 ratio was 12.4% in September 2026. That ratio measures the highest-quality capital available to absorb losses relative to risk-weighted assets. It shows why payout capacity depends on the cushion the bank must preserve.
| Today (Oct 22, 2026) | |
|---|---|
| Share price | 166.91 |
| Market value (calculated) | 30,230.4 |
| P/E, last 12 months (calculated) | 13.1x |
| P/E, next 12 months (calculated) | 14.2x |
| Price to book (calculated) | 2.4x |
| Dividend yield (calculated) | 2.1% |
What this means. The next-year price-to-earnings number uses analysts’ expected profit, so it can change when their forecasts change.