Xylem dividend: cash cover and outlook
MyStockButler's October 2026 analysis: Xylem's declared dividend is $0.43 quarterly, and its base case raises it to $1.80 in 2027, $1.92 in 2028, and $2.04 in 2029. Xylem's dividend is covered by its $910 million of 2025 free cash flow, while 2026 free cash flow was only $461 million through nine months.
How much does Xylem pay per share over time?
Base dividends rise from the current annualized rate to $1.80 in 2027 and $1.92 in 2028. They reach $2.04 in 2029. The bear case holds the rate at $1.72 because the board pauses increases. The bull case reaches $2.16. The base reflects five consecutive years of increases and the declared $0.43 quarterly dividend, but moderates future growth because 2026 free cash flow was only $461 million through nine months.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Dividends per share | 1.80 (1.72 / 1.84) | 1.92 (1.72 / 2.00) | 2.04 (1.72 / 2.16) |
How much would Xylem's dividend pay you?
$10,000 invested in Xylem at its 1.9% dividend yield (our report of October 28, 2026) pays $190.00 in the first year, before tax. If its dividend per share keeps changing 9.3% a year, as it did from 2021 to 2025, and the dividends are reinvested, year 10 pays $542.80, with $3,347.24 received in all.
Before tax. Past dividend growth is not a promise. Information only, not investment advice.
Does Xylem's cash cover its dividend?
Free cash flow is cash from operations less capital spending. In 2025, Xylem generated $910 million of free cash flow, about 95% of net income attributable to Xylem. It represented about 73% of adjusted net income, showing why the choice of profit denominator matters.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 910 | 942 | 566 | 388 | 330 |
| − Dividends paid | 391 | 350 | 299 | 217 | 203 |
| − Share buybacks | 0 | 0 | 0 | 46 | 60 |
| = Free cash flow not paid out | 517 | 591 | 267 | 125 | 67 |
| Paid out, % of free cash flow | 43.0% | 37.2% | 52.8% | 67.8% | 79.7% |
What could change Xylem's dividend?
The November 2026 Swedish tax hearing could resolve a SEK 837 million assessment for which Xylem has recorded no liability. Fourth-quarter 2026 results and the February outlook will test whether price and productivity protect margins as project revenue slows. During 2027, treatment projects must convert faster and metering deployments must stabilize before larger awards scheduled for late 2027 and 2028.
What is Xylem's dividend yield today against its price?
Xylem carries a 15.3x next-twelve-month earnings multiple and a 4.3% free-cash-flow yield. Its 1.9% dividend yield sits alongside debt and investment needs. Xylem’s free-cash-flow margin weakened even as reported margins improved; net debt fell through 2025, then rose in 2026 as buybacks and acquisitions used cash.
| Today (Oct 28, 2026) | |
|---|---|
| Share price | 92.86 |
| Free cash flow yield (calculated) | 4.3% |
| Real free cash flow yield (calculated) | 4.0% |
| Dividend yield (calculated) | 1.9% |
What this means. The next twelve months price-to-earnings ratio uses analysts’ guesses about future profit, so it is not guaranteed.