Teradyne dividend: is it covered by cash?
Teradyne’s dividend is $0.52 per share on the current run rate; the forecast ranges from $0.48 to $0.72 per share. In 2025, Teradyne paid dividends and buybacks equal to 172.8% of free cash flow, so its shareholder payouts were not covered by that year’s free cash flow alone.
How much does Teradyne pay per share over time?
Dividends rise from $0.52 per share to $0.60 in the base case. That repeats the recent $0.04 annual step from $0.48 to the current $0.52 run rate. The bear case cuts the dividend to $0.48 after October 2027, while the bull case reaches $0.72 as cash generation strengthens. The board retains discretion, so neither path is guidance.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| − Dividends paid, per share | 0.48 | 0.47 | 0.41 | 0.41 | 0.36 |
| − Share buybacks, per share | 4.40 | 1.22 | 2.42 | 4.43 | 3.27 |
| = FCF not paid out, per share | 1.22 | 1.63 | |||
| = Paid out more than FCF, per share | 2.05 | 0.24 | 2.40 |
What this means. The company's own free cash flow per share is higher because it does not subtract the value of shares given to employees as pay; we subtract that cost, so our real amount is lower.
Does Teradyne’s cash cover its dividend?
The company returned more cash to shareholders than that year’s free cash flow in 2025. Dividends and buybacks were 172.8% of free cash flow, and buybacks alone were $702,095 thousand. That meant Teradyne used accumulated cash or borrowing, rather than relying only on that year’s earnings power. Such a policy can be sensible if the shares are undervalued, but the cash-flow figures alone cannot show whether the repurchases created value.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 450,406 | 474,081 | 425,589 | 414,674 | 965,894 |
| − Dividends paid | 76,313 | 76,423 | 67,878 | 69,711 | 65,977 |
| − Share buybacks | 702,095 | 198,574 | 397,241 | 752,082 | 600,000 |
| = Free cash flow not paid out | 199,084 | 299,917 | |||
| = Paid out more than the free cash flow | 328,002 | 39,530 | 407,119 | ||
| Paid out, % of free cash flow | 172.8% | 58.0% | 109.3% | 198.2% | 68.9% |
What this means. The company paid shareholders more cash than it generated in free cash flow in some years, so it used savings or borrowed money to cover the difference.
What could change Teradyne’s dividend?
Teradyne also spent on equipment and acquisitions, issued debt and ended 2025 with net cash. Its cash reserve was nevertheless much smaller than in 2021. Management has said it wants to reinvest, preserve reserves and retain capacity for acquisitions; the payout record shows that these aims compete for the same pool of money.
What is Teradyne’s dividend yield today?
Dividend yield describes the dividend at a particular share price, not the full shareholder return. Cash, debt and capital allocation must therefore be read together.
| Today (Oct 18, 2026) | |
|---|---|
| Share price | 325.00 |
| Free cash flow yield (calculated) | 0.9% |
| Real free cash flow yield (calculated) | 0.8% |
| Dividend yield (calculated) | 0.2% |
What this means. The next-year price-to-earnings ratio uses analysts’ predicted profit, so it may be wrong.