Parker dividend: cash coverage and yield
Parker pays $8.00 per share annually, with the forecast showing $8.40 in 2027, $9.24 in 2028 and $10.16 in 2029. Parker's $3,905 million of fiscal 2026 free cash flow covers its dividend, while cash also funds buybacks, acquisitions and debt reduction.
How much does Parker pay per share?
Dividends start from the current $8.00 annualized rate. The base case pays $8.40 per share in 2027, $9.24 in 2028 and $10.16 in 2029. That represents roughly 10% annual increases, close to the latest 11% raise. The bear case uses $8.20, $8.61 and $9.04 as debt and integration demands restrain increases. The bull case reaches $8.60, $10.12 and $11.96 because cash conversion remains strong. The 70-year increase record supports continued payments.
| Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | |
|---|---|---|---|---|---|
| EPS, diluted | 28.48 | 27.12 | 21.84 | 16.04 | 10.09 |
| Real free cash flow per share | 29.09 | 24.44 | 21.73 | 18.91 | 15.91 |
| − Dividends paid, per share | 7.31 | 6.61 | 6.00 | 5.41 | 4.37 |
| − Share buybacks, per share | 9.85 | 13.56 | 2.55 | 2.29 | 3.53 |
| = FCF not paid out, per share | 13.33 | 5.48 | 14.36 | 12.30 | 9.07 |
What this means. Real free cash flow per share is lower because it subtracts shares given to employees as pay, while the company’s own count does not.
Does Parker's cash cover its dividend?
Cash conversion asks how much reported earnings become money generated by the business. After capital spending, Parker produced $3,905 million of free cash flow in fiscal 2026. That equaled 107% of net income, compared with approximately 95% in fiscal 2025. Cash generation therefore strengthened even though the prior year benefited from unusually favourable tax items.
| Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | |
|---|---|---|---|---|---|
| Free cash flow | 3,905 | 3,341 | 2,984 | 2,599 | 2,211.686 |
| − Dividends paid | 936 | 861 | 781 | 703 | 569.294 |
| − Share buybacks | 1,262 | 1,766 | 332 | 297 | 460.056 |
| = Free cash flow not paid out | 1,707 | 714 | 1,870 | 1,598 | 1,181.775 |
| − Acquisitions | 1,014 | 0 | 0 | 7,146 | 0 |
| − Debt repaid | 760 | 2,105 | 2,385 | 2,341 | 18.737 |
What this means. The company's own net debt differs because it adds certain borrowing fees and subtracts more investments than our calculation, including restricted acquisition cash in 2022.
What could change Parker's dividend?
Management guides to 5.5%–8.5% reported and organic sales growth for fiscal 2027. The adjusted EPS guide is $34.25–$35.25. Adjusted segment margin is guided to 27.5%–27.9%, versus 24.5%–24.9% as reported. Standalone fiscal 2027 free cash flow is guided to $3.4 billion–$3.9 billion; that guide excludes Filtration Group and CIRCOR.
The view moves toward the bear case if FY27–FY28 sell-through fails to confirm distributor orders, or if equipment use weakens. Aerospace schedule or supplier delays through FY29 would also reduce growth and cash conversion.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Normal operating profit | 5,586 (4,850 / 6,000) | 6,006 (4,650 / 6,750) | 6,412 (4,900 / 7,540) |
| Dividends per share | 8.40 (8.20 / 8.60) | 9.24 (8.61 / 10.12) | 10.16 (9.04 / 11.96) |
| Net debt | 17,973 (17,855 / 17,999) | 15,728 (16,244 / 15,759) | 13,293 (14,389 / 13,269) |
What this means. The enterprise value to normal operating profit number shows how many dollars investors pay for each dollar of the company's normal operating profit.
What is Parker's dividend yield today?
Free cash flow is the money left after running the business and maintaining its equipment. Parker’s 3.2% free-cash-flow yield says that each $100 of market value represents about $3.20 of annual cash generation, not that the investor receives $3.20. The dividend yield was only 0.8%. Parker can use the rest for acquisitions, debt repayment or repurchases. Working capital also matters: a credit sale can produce accounting profit before the customer pays, while inventory consumes cash before it is sold.