Old Dominion dividend: cash coverage and yield
Old Dominion pays a $0.29 quarterly dividend, and its cash coverage has varied. Across five years, it generated $4.234 billion of free cash flow and paid $4.889 billion to shareholders.
How much does Old Dominion pay per share?
Dividends grow gradually in the base case, from $1.20 per share to $1.28. The bear holds the current annualized rate of $1.16, while the bull reaches $1.48. The base reflects the move to a $0.29 quarterly dividend and the record of annual increases, but capital spending and board discretion argue against assuming rapid growth.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| EPS, diluted | 4.84 | 5.48 | 5.63 | 6.09 | 4.45 |
| Free cash flow per share | 4.51 | 4.10 | 3.69 | 4.05 | 2.85 |
| − Dividends paid, per share | 1.11 | 1.03 | 0.80 | 0.59 | 0.40 |
| − Share buybacks, per share | 3.45 | 4.47 | 2.06 | 5.65 | 2.57 |
| = FCF not paid out, per share | 0.83 |
What this means. In 2025, the company paid shareholders 0.05 dollars per share more than the cash it generated, so it had to use other cash or borrow.
Is Old Dominion’s dividend covered by its cash?
Across the five years, Old Dominion generated $4.234 billion of free cash flow and paid $4.889 billion to shareholders. Payments exceeded that year’s free cash flow in four years, which means accumulated cash helped fund the distributions. The company was not simply handing out each year’s surplus.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 955,099 | 887,965 | 811,826 | 916,434 | 662,529 |
| − Dividends paid | 235,641 | 223,618 | 175,089 | 134,484 | 92,366 |
| − Share buybacks | 730,338 | 967,294 | 453,613 | 1,277,219 | 598,965 |
| = Free cash flow not paid out | 183,124 | ||||
| Paid out, % of free cash flow | 101.1% | 134.1% | 77.4% | 154.0% | 104.3% |
What this means. In 2024 and 2022, the company paid shareholders more cash than it generated, so it used savings or borrowed money to cover the difference.
What could change Old Dominion’s dividend?
Finally, the $380 million capital plan and actual buyback pace will determine how much operating cash becomes net cash and per-share growth. If the market sees durable improvement, the multiple can remain near or above recent history; if growth disappoints, the bear case’s 20-times valuation becomes more likely.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Normal operating profit | 1,701 (1,392 / 1,806) | 1,796 (1,300 / 2,030) | 1,876 (1,392 / 2,212) |
| Shares (millions) | 205 (206 / 204) | 203 (205 / 201) | 201 (204 / 198) |
| Dividends per share | 1.20 (1.16 / 1.24) | 1.24 (1.16 / 1.36) | 1.28 (1.16 / 1.48) |
| Enterprise value to normal operating profit | 24.00 (20.00 / 28.00) | 24.00 (18.00 / 30.00) | 25.00 (20.00 / 32.00) |
| Net debt | -595 (-715 / -401) | -864 (-920 / -510) | -1,174 (-1,189 / -714) |
What this means. Negative net debt means the company has more cash than borrowed money, which is generally safer.
What is Old Dominion’s dividend yield today?
The tables show a recovery-dependent valuation: trailing P/E is 36.3x and forward P/E is 27.9x. Current cash returns are a 2.4% free-cash-flow yield and a 0.6% dividend yield. Operating margin fell to 24.8% from 29.4%, while the 1.9% buyback yield depends on continued repurchases.