Stryker dividend: coverage and yield
Stryker's latest quarterly dividend is $0.88 per share. Cash dividend payments were $1,284 million against $4,283 million of free cash flow, leaving the dividend well covered.
How much does Stryker pay in dividends over time?
Dividends provide modest support. The base case uses $3.69 per share in 2027 and $3.87 in 2028, reaching $4.06 in 2029. This follows the latest $0.88 quarterly dividend and roughly 5% annual increases. The bear case freezes the annual dividend at $3.52 because disruption and debt could restrain distributions. The bull case reaches $3.76 in 2027 and $4.06 in 2028, then $4.39 in 2029. Free cash flow was $4,283 million in 2025 against $1,284 million of dividends, supporting continued increases.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Revenue | 25,116 | 22,595 | 20,498 | 18,449 | 17,108 |
| EPS, diluted | 8.40 | 7.76 | 8.25 | 6.17 | 5.21 |
| Dividend per share | 3.40 | 3.24 | 3.05 | 2.84 | 2.59 |
What this means. The 2025 sales growth includes buying one business and selling another, so it does not show only growth from the company's existing businesses.
Is Stryker's dividend covered by its cash?
The dividend remained well covered. Cash dividend payments were $1,284 million, or about 30% of conventional free cash flow. That left room for debt repayment and reinvestment before acquisitions.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 4,283 | 3,487 | 3,136 | 2,036 | 2,738 |
| − Dividends paid | 1,284 | 1,219 | 1,139 | 1,051 | 950 |
| − Share buybacks | 0 | 0 | 0 | 0 | 0 |
| = Free cash flow not paid out | 2,999 | 2,268 | 1,997 | 985 | 1,788 |
| Paid to shareholders | 1,284 | 1,219 | 1,139 | 1,051 | 950 |
| Paid out, % of free cash flow | 30.0% | 35.0% | 36.3% | 51.6% | 34.7% |
What could change Stryker's dividend?
Stryker offers moderate upside through October 2029, but the outcome hinges on earnings delivery and the valuation multiple. Management guides to 8.3%–9.3% organic sales growth and $14.95–$15.10 adjusted diluted EPS for 2026. Through 2028, it targets double-digit annual adjusted EPS growth and at least 1.5 percentage points of adjusted operating-margin expansion.
What is Stryker's dividend yield today?
Free cash flow provides another test. Stryker generated $5.044 billion from operations and spent $761 million on property and equipment in 2025. But acquisitions consumed $4.960 billion. That explains why a 4.0% free-cash-flow yield is not the same as a 1.2% dividend yield: the company can use cash for acquisitions, debt repayment or reinvestment before shareholders receive it.
| Today (Oct 15, 2026) | |
|---|---|
| Share price | 281.63 |
| P/E, last 12 months (calculated) | 29.2x |
| P/E, next 12 months (calculated) | 16.9x |
| Free cash flow yield (calculated) | 4.0% |
| Real free cash flow yield (calculated) | 3.7% |
| Dividend yield (calculated) | 1.2% |
What this means. Enterprise value is higher than market value because it includes the company's debt and subtracts its cash, showing the cost of buying the whole business.