PACCAR dividend
PACCAR’s latest regular quarterly dividend is $0.35, and PACCAR declared an extra $1.40 per share payable in January 2026. PACCAR paid out 62.2% of its 2025 free cash flow to shareholders.
How much does PACCAR pay in dividends?
The dividend base path rises from $1.40 per share to $1.56. The bear case holds at $1.40. The bull case reaches $1.72. The latest regular quarterly dividend is $0.35, and annual dividends rose each year in the supplied five-year record. The forecast excludes the variable $1.40 special dividend paid in early 2026.
Dividends were PACCAR’s main direct return to shareholders. The company paid $2.27 billion in dividends in 2025. It also declared an extra $1.40 per share payable in January 2026. The extra payment shows that distributions can rise when profits and capital needs permit, but it is not a permanent promise.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| EPS, diluted | 4.51 | 7.90 | 8.76 | 5.75 | 3.57 |
| − Dividends paid, per share | 4.30 | 4.35 | 2.89 | 1.92 | 1.35 |
| − Share buybacks, per share | 0.03 | 0.00 | 0.00 | 0.00 | 0.00 |
What this means. Real free cash flow per share is slightly lower because it subtracts the value of shares given to employees as pay.
Is PACCAR’s dividend covered by its cash?
Free cash flow is the money left after operating costs and spending on long-lived assets such as factories and equipment. It shows what may be available for dividends, acquisitions, debt reduction or liquidity. From 2021 through 2025, PACCAR generated more free cash flow in 2025 than in 2021 and paid out 62.2% of its 2025 free cash flow to shareholders.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 3,672.8 | 3,802.2 | 3,495.0 | 2,502.0 | 1,627.6 |
| − Dividends paid | 2,267.1 | 2,288.5 | 1,518.6 | 1,004.7 | 708.0 |
| − Share buybacks | 18.4 | 0 | 0 | 0 | 0 |
| = Free cash flow not paid out | 1,387.3 | 1,513.7 | 1,976.4 | 1,497.3 | 919.6 |
| Paid out, % of free cash flow | 62.2% | 60.2% | 43.5% | 40.2% | 43.5% |
What this means. The cash flow includes the financial services business, but the cash and debt totals leave it out, so these figures cannot be compared directly.
What could change PACCAR’s dividend?
The base case would gain support if management’s market outlook and Parts growth became deliveries and revenue during 2027. Higher builds with controlled costs, continued liquidity and regular dividends would support the gradual recovery.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Normal operating profit | 3,335 (2,338 / 4,030) | 3,875 (2,660 / 4,760) | 4,095 (2,900 / 5,040) |
| Shares (millions) | 527 (528 / 527) | 528 (530 / 527) | 530 (532 / 528) |
| Dividends per share | 1.40 (1.40 / 1.40) | 1.48 (1.40 / 1.56) | 1.56 (1.40 / 1.72) |
| Enterprise value to normal operating profit | 11.00 (8.50 / 12.50) | 11.50 (8.00 / 13.50) | 12.00 (8.00 / 14.00) |
| Net debt | -10,689 (-9,386 / -11,569) | -13,250 (-10,368 / -14,948) | -15,984 (-11,567 / -18,522) |
What is PACCAR’s dividend yield against its price?
The tables show the turn: revenue peaked at $35,127.4 million in 2023 before falling to $28,444.8 million in 2025, while deliveries fell from 204,200 to 144,200. Diluted EPS fell from $8.76 to $4.51, while PACCAR’s computed free cash flow—cash from operations minus capital spending—supports a 6.3% yield against a 1.3% dividend yield. Industrial net cash was $9,252.8 million against $15,636.3 million of finance-arm borrowings in 2025.