Veralto dividend: cash coverage and yield
MyStockButler's October 2026 analysis: Veralto's dividend rose from $0.09 to $0.13 per share in the payment history, and Veralto's declared quarterly rate is $0.13. Veralto generated $1,014 million of free cash flow in 2025, supporting the dividend while cash also faced competing claims.
How much does Veralto pay per share?
Base dividends rise from $0.56 per share in the first window to $0.64 and then $0.72. The declared quarterly rate is $0.13, while the payment history shows increases from $0.09 to $0.13. The bear case holds each window at $0.52 because acquisitions and repurchases compete for cash. The bull case reaches $0.80, supported by $1,014 million of 2025 free cash flow. Even the base path increases more slowly than the latest 18% dividend increase.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Book value per share | 12.50 | 8.24 | 5.62 | not meaningful | not meaningful |
| Book value per share, growth | 51.7% | 46.7% | |||
| − Dividends paid, per share | 0.44 | 0.36 | 0.00 | 0.00 | |
| − Share buybacks, per share | 0.00 | 0.00 | 0.00 | 0.00 |
What this means. The 2025 and 2024 book value per share figures are our calculations, not numbers printed by the company, and the earlier figures are marked not meaningful because the company had not yet separated from its former parent.
Does Veralto's cash cover its dividend?
Free cash flow is operating cash flow after capital expenditure. In 2025, operating cash flow of $1,077 million less $63 million of capital spending produced $1,014 million of free cash flow, or about 108% of net income. Working capital explains part of the difference: unpaid invoices, inventory and supplier bills can move cash in different periods from sales and expenses.
Before independence, much of the surplus moved to Danaher. After independence, Veralto began paying dividends and retained cash, while making no buybacks until the board authorized its first repurchase program. The company then had to choose between buying its own shares and buying more businesses. Cash retained on the balance sheet preserved acquisition capacity, but paying borrowing costs while holding cash also has a cost.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| − Dividends paid | 109 | 89 | 0 | 0 | 0 |
| − Share buybacks | 0 | 0 | 0 | 0 | 0 |
| Acquisitions | 0 | 363 | 0 | 55 | 60 |
| Net cash from financing activities | -102 | -65 | -135 | -781 | -799 |
| All other financing activities | -15 | 0 | 0 | 0 | 1 |
What could change Veralto's dividend?
Veralto could reach $186.03 by October 2029, but that outcome hinges on durable growth, successful execution and investor confidence in earnings quality. For 2026, management guides to 4.0%–4.5% core sales growth and adjusted EPS of $4.35–$4.43. It also targets 25–50 basis points of adjusted operating-margin expansion and 100.0% free-cash-flow conversion.
What is Veralto's dividend yield at today's price?
Net income falls through 2024, then recovers; the recovery must prove durable. The recurring-sales base supports the company’s own free cash flow, but deferrals and supplier switching can weaken conversion from earnings. At $101.30, shares trade at about 21.13 times next-twelve-month earnings. The 0.5% dividend yield leaves the case dependent on growth, while 7.99x price to book is not a primary measure of earning power. Dividends per share increased while buybacks were zero through 2025.
| Today (Oct 21, 2026) | |
|---|---|
| Share price | 101.30 |
| P/E, next 12 months (calculated) | 21.13x |
| Dividend yield (calculated) | 0.5% |
| Latest declared regular quarterly dividend per share | 0.13 |
What this means. The market value uses the latest share count reported in July, not a share count from today, so it is an estimate.