United Rentals dividend: pay and cash coverage
MyStockButler's October 2026 analysis: United Rentals pays $1.97 a share quarterly, after starting its dividend in January 2023. Its cash coverage needs care because a rental company pays for machines before collecting years of rent.
How much does United Rentals pay per share?
URI also paid dividends and bought back shares. The dividend began in January 2023. In January 2026, URI raised the quarterly payment to $1.97 a share and authorized another $5 billion of repurchases. Debt supplied part of the funding, and net debt increased across the five-year period. That does not prove overdistribution, but it does create future interest and repayment claims. The decisive issue is therefore whether the invested money earns enough.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| EPS, diluted | 38.61 | 38.69 | 35.28 | 29.65 | 19.04 |
| Free cash flow per share | 10.25 | 6.29 | 9.23 | 10.47 | 6.74 |
| − Dividends paid, per share | 7.18 | 6.52 | 5.91 | 0.00 | 0.00 |
| − Share buybacks, per share | 29.41 | 22.53 | 14.55 | 14.09 | 0.00 |
| = FCF not paid out, per share | 6.74 |
What this means. The company's own free cash flow per share is much higher because it adds cash from selling equipment and insurance recoveries, while our count starts with cash from operations minus equipment spending.
How much would United Rentals's dividend pay you?
$10,000 invested in United Rentals at its 0.7% dividend yield (our report of October 22, 2026) pays $70.00 in the first year, before tax. If its dividend stays flat and the dividends are reinvested, year 10 pays $74.54, with $722.47 received in all.
Before tax. Past dividend growth is not a promise. Information only, not investment advice.
Does United Rentals cover its dividend with cash?
The strict view subtracts capital spending from operating cash and then subtracts stock compensation. Stock compensation may not require an immediate cash payment, but it transfers ownership to employees and can lead to repurchases that offset dilution. URI’s own free-cash-flow measure also includes proceeds from selling rental equipment, other equipment and certain insurance recoveries.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 662 | 419 | 634 | 743 | 491 |
| − Dividends paid | 464 | 434 | 406 | 0 | 0 |
| − Share buybacks | 1,900 | 1,500 | 1,000 | 1,000 | 0 |
| = Free cash flow not paid out | 491 | ||||
| Paid out, % of free cash flow | 357.1% | 461.6% | 221.8% | 134.6% | 0.0% |
What this means. The company paid shareholders more than it generated from its business in every year except 2021, so it used cash from savings, asset sales, or new borrowing to cover the difference.
What could change the United Rentals dividend?
Dividends per share rise from $8.08 in the base case to $8.89 in 2028. They reach $9.78 in 2029, reflecting another 10% January increase each year after the latest increase. The bear case holds at $7.88 because capex and distributions already absorb much of free cash flow. The bull case reaches $11.93 by 2029, requiring 15% annual increases and stronger cash generation.
What is United Rentals’ dividend yield against its price?
United Rentals is priced for growing profits, while its cash yield leaves little room for disappointment.
| Today (Oct 22, 2026) | |
|---|---|
| Share price | 1,068.98 |
| P/E, last 12 months (calculated) | 23.5x |
| Free cash flow yield (calculated) | 1.0% |
| Real free cash flow yield (calculated) | 0.8% |
| Dividend yield (calculated) | 0.7% |
What this means. Enterprise value is higher than market value because it adds the company's debt and subtracts its cash.