February 28, 2026 a 03:30 pm

DPZ: Dividend Analysis - Domino's Pizza, Inc.

Overview

📊 The key dividend metrics for Domino's Pizza, Inc. underline a stable history of payouts, evidenced by a 19-year streak of dividend distributions. Although the dividend yield remains modest, it's the consistency that sets it apart.

Metric	Value
Sector	Consumer Cyclical
Dividend Yield	1.79%
Current Dividend per Share	$6.97
Dividend History	19 years
Last Cut or Suspension	None

Dividend History

🗣️ Historical dividend payments highlight the longevity of dividend deliverance by the company. This record ensures investor confidence in continuous income.

Year	Dividend per Share
2026	$1.99
2025	$6.96
2024	$6.04
2023	$4.84
2022	$4.40

Dividend Growth

📈 Dividend growth rates provide insight into potential future income escalation. Over the past 5 years, Domino's has shown growth, hinting at increasing payouts for the future.

Time	Growth
3 years	16.52%
5 years	17.41%

The average dividend growth is 17.41% over 5 years. This shows moderate but steady dividend growth.

Payout Ratio

📉 Evaluating payout ratios uncovers the dividend sustainability of a company. With 39.37% based on EPS and 34.88% based on free cash flow, Domino's exhibits a sustainable dividend strategy.

Key Figure	Ratio
EPS-based	39.37%
Free cash flow-based	34.88%

The payout ratio indicates the company is using a conservative approach to maintain its dividend payments, providing assurance to investors about its dividend sustainability.

Cashflow & Capital Efficiency

✅ Critical analysis of cash flow and capital allocation reveals how effectively the company manages its resources and its ability to maintain dividends.

Metric	2025	2024	2023
Free Cash Flow Yield	4.69%	3.50%	3.36%
Earnings Yield	4.20%	4.00%	3.59%
CAPEX to Operating Cash Flow	15.22%	18.06%	17.84%
Stock-based Compensation to Revenue	0.90%	0.92%	0.84%
Free Cash Flow / Operating Cash Flow Ratio	84.78%	81.94%	82.16%

The data suggests Domino's uses its capital efficiently, maintaining robust cash flow to support ongoing dividend disbursements.

Balance Sheet & Leverage Analysis

⚠️ Thorough leverage and balance sheet analysis indicate the financial health and debt management of the enterprise, impacting dividend payments.

Metric	2025	2024	2023
Debt-to-Equity	-1.34	-1.31	-1.28
Debt-to-Assets	2.90	2.99	3.11
Net Debt to EBITDA	4.53	4.98	5.48
Current Ratio	1.65	0.56	1.49
Quick Ratio	1.50	0.52	1.34

While the company showcases an adequate liquidity position, the aggressive leverage ratios may pose risks and necessitate careful future financial management.

Fundamental Strength & Profitability

🔍 Assessment of fundamental strengths and profitability ratios determines the company's viability and efficiency.

Metric	2025	2024	2023
Return on Equity	-15.42%	-14.74%	-12.75%
Return on Assets	33.40%	33.63%	30.99%
Net Margin	12.18%	12.41%	11.59%
EBITDA Margin	21.46%	21.37%	20.75%
R&D to Revenue	0%	0%	0%

Despite innovative inefficiency, profitability remains robust, delivering strong returns on core asset bases.

Price Development

Dividend Scoring System

Category	Score
Dividend Yield	3
Dividend Stability	4
Dividend Growth	4
Payout Ratio	5
Financial Stability	3
Dividend Continuity	5
Cashflow Coverage	4
Balance Sheet Quality	2

Rating

Domino's Pizza, Inc. maintains a steady dividend profile ensuring ongoing shareholder rewards. While the company's fundamental ratios indicate some areas of concern, especially with leverage, its historical dividend reliability and modest growth potential make it a viable, though cautious, selection for dividend-savvy investors.