July 17, 2026 a 03:30 am
DPZ: Dividend Analysis - Domino's Pizza, Inc.
Domino's Pizza, Inc. exhibits a stable dividend profile with a commendable track record. Despite challenges in financial performance, the company's solid history of 19 consecutive years without dividend suspension reflects resilience. Currently, Domino's maintains a moderate dividend yield of 2.36% and demonstrates consistent growth, indicating potential for long-term investors.
📊 Overview
Dominos Pizza, Inc. is a player in the consumer discretionary sector, displaying a strategic focus on shareholder returns through dividends. With a dividend yield of 2.36%, it's attractive for income-seeking investors. Additionally, the firm boasts a 19-year history of dividend growth without any recorded suspensions in recent memory, underscoring management's commitment to stable cash returns.
| Metric | Value |
|---|---|
| Sector | Consumer Discretionary |
| Dividend Yield | 2.36% |
| Current Dividend per Share | 6.97 USD |
| Dividend History | 19 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
A consistent dividend history is crucial for evaluating a company's financial resilience and commitment to shareholder returns. Domino's Pizza, Inc. has steadily increased its dividends over the years, reflecting robust operational performance. This consistency can offer investors a reliable income stream.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 3.98 |
| 2025 | 6.96 |
| 2024 | 6.04 |
| 2023 | 4.84 |
| 2022 | 4.40 |
📈 Dividend Growth
Dividend growth is a key indicator of a company's earnings potential and management's commitment to returning capital to shareholders. Over the last 5 years, Domino's Pizza's dividend grew by 17.41%, showcasing its solid fundamentals and shareholder value focus.
| 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
Payout ratios are critical to assess a company's ability to sustain its dividends. Domino's Pizza maintains a payout ratio of 39.79% based on EPS and 35.42% based on free cash flow, indicating sound financial practices and the capacity to cover its dividends while investing in essential operations.
| Key Figure | Ratio |
|---|---|
| EPS-based | 39.79% |
| Free Cash Flow-based | 35.42% |
These ratios suggest that Domino's Pizza has maintained sufficient earnings and cash flows, supporting its dividend policy with room for potential growth.
🌐 Cashflow & Capital Efficiency
The analysis of cash flow and capital efficiency gives insight into the operational robustness and the firm's strategic capital allocation decisions. Key metrics are consistent, with Domino's evidencing a commendable free cash flow yield and efficient capital expenditure.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 4.69% | 3.50% | 3.36% |
| Earnings Yield | 4.20% | 4.00% | 3.59% |
| CAPEX to Operating CF | 15.20% | 18.06% | 17.84% |
| Stock-based Compensation to Revenue | 0.90% | 0.91% | 0.84% |
| Free CF / Operating CF Ratio | 84.78% | 81.94% | 82.16% |
Domino's Pizza showcases strong cash flow utilization with efficient capital use and positive cash yield, underscoring healthy capital management practices.
📄 Balance Sheet & Leverage Analysis
A strong balance sheet ensures financial resilience, with Domino's exhibiting a leverage structure aimed at optimizing capital use while maintaining liquidity. Despite high leverage ratios, operational efficiency cushions leverage risks.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | -1.34 | -1.31 | -1.28 |
| Debt-to-Assets | 2.90 | 2.99 | 3.11 |
| Debt-to-Capital | 3.93 | 4.21 | 4.57 |
| Net Debt to EBITDA | 4.89 | 4.98 | 5.48 |
| Current Ratio | 1.65 | 0.56 | 1.49 |
| Quick Ratio | 1.50 | 0.52 | 1.34 |
Analysis of debt-related metrics suggests prudent management of liabilities, ensuring liquidity and financial solvency.
📈 Fundamental Strength & Profitability
Domino's Pizza's profitability ratios reflect solid operational efficiencies and a moderate return on assets, ensuring sustained investor confidence through robust margins.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | -15.42% | -14.74% | -12.75% |
| Return on Assets | 33.40% | 33.63% | 30.99% |
| Margins: Net | 12.18% | 12.41% | 11.59% |
| Margins: EBIT | 19.56% | 19.51% | 18.95% |
| Margins: EBITDA | 21.45% | 21.37% | 20.75% |
| Margins: Gross | 39.95% | 39.28% | 38.56% |
| R&D to Revenue | 0% | 0% | 0% |
Domino's financial framework supports strong profitability, indicative of its strategic prowess and effective resource allocation.
📉 Price Development
✅ Dividend Scoring System
Below is our custom dividend scoring, gauging Domino's Pizza's dividend potential across a range of metrics.
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend Yield | 3/5 | |
| Dividend Stability | 4/5 | |
| Dividend Growth | 4/5 | |
| Payout Ratio | 4/5 | |
| Financial Stability | 3/5 | |
| Dividend Continuity | 5/5 | |
| Cashflow Coverage | 4/5 | |
| Balance Sheet Quality | 3/5 |
Total Score: 30/40
🗒️ Rating
Domino's Pizza, Inc. stands out with its reliable dividend history and competitive growth rates. Despite some concerns related to leverage, its robust cash flow and strategic operational shifts present a strong case for inclusion in an income-focused portfolio. Overall, we recommend considering Domino's Pizza as a worthwhile dividend play for long-term investors because of its consistent returns and growth prospects.
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