Autoliv (ALV) DIvidends Date & History

Key Takeaways

• Autoliv (ALV) offers a current dividend yield of approximately 3.15%, paid quarterly at $0.87 per share.
• Annual dividend totals $3.48 per share, with a low payout ratio of 36.4% indicating strong earnings coverage.
• Recent increases: from $0.70 to $0.85 to $0.87 quarterly in 2025, showing modest growth post-2020 suspension.
• Free cash flow (FCF) payout at 21.61% and robust TTM FCF of $716 million support sustainability.
• Leverage ratio at 1.1x (below 1.5x target) and healthy balance sheet enhance dividend reliability.
• Appeals to income investors seeking stability in the auto parts sector.

Dividend Overview

Autoliv Inc. (ALV), a leading global provider of automotive safety systems, maintains a quarterly dividend policy determined by its Board of Directors. The company currently pays $0.87 per share quarterly, equating to an annual dividend of $3.48 and a yield of about 3.15% based on recent trading levels. This positions ALV as a modest-yield dividend stock rather than a high-yield or aggressive growth play. Payments are reliable, with the most recent ex-dividend date on March 4, 2026, and payment on March 19, 2026. The policy emphasizes discretion, balancing shareholder returns with reinvestment in safety technologies amid cyclical auto industry demands. While not a long-term Dividend Aristocrat due to a 2020 COVID-related suspension, ALV has resumed and steadily increased payouts since 2021.

Dividend History and Growth

Autoliv has paid quarterly dividends consistently since reinstating them in Q2 2021 after suspending in 2020 amid pandemic pressures. Pre-suspension, payments were steady at around $0.62 in 2019, with gradual increases from $0.54 in 2015. Recent history shows growth: 2022 averaged $0.645 quarterly, rising to $0.67 in 2023, $0.685 in 2024, and accelerating in 2025 with Q1-Q2 at $0.70, Q3 at $0.85 (21% jump), and Q4-Q1 2026 at $0.87 (2.4% hike). The five-year average annual growth rate stands at 20.27%, though the current streak is one year. This reflects a strategy of progressive increases supported by recovering earnings, without a formal long-term commitment but aligned with cash flow generation.

Dividend Sustainability and Payout Ratio

Autoliv's dividend appears highly sustainable, backed by a trailing 12-month payout ratio of 36.4%—well below 60% thresholds signaling caution—and an expected 32.13% forward ratio. Earnings per share (EPS) of $9.55 TTM provide ample coverage, with dividends consuming just 36% of profits. Free cash flow payout is even stronger at 21.61%, with TTM FCF at $716 million from $1.16 billion operating cash flow minus $441 million capex. Debt levels are manageable: total debt at $2.32 billion yields a leverage ratio of 1.1x (target <1.5x) and debt-to-equity of 89.78%. Current ratio of 1.05 supports liquidity. These metrics, combined with return on capital employed at 26.4%, indicate robust financial stability for ongoing payments.

Dividend Compared to Industry Peers

In the auto parts sector, Autoliv's 3.15% yield exceeds the industry average of 2.84% for auto companies. Peers like Lear (LEA) at 2.61%, BorgWarner (BWA) at 1.30%, Gentex (GNTX) at 2.2%, and Magna International (MGA) at 3.66% show ALV's offering as competitive. Aptiv (APTV) and Adient (ADNT) pay no dividends, prioritizing growth. ALV's lower payout ratio (vs. peers' higher averages) and superior FCF coverage make its profile more conservative and reliable than higher-yield options like MGA.

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Is This Stock Attractive for Dividend Investors?

Autoliv (ALV) suits conservative income investors valuing steady yields over explosive growth, given its 3.15% payout backed by low coverage ratios and strong cash flows. Those prioritizing sustainability appreciate the 36.4% earnings payout and FCF support, offering a buffer against auto industry cycles like production slowdowns. Long-term holders may find appeal in the modest growth trajectory—20.27% over five years—and balance sheet strength (1.1x leverage), which supports resilience. However, dividend growth seekers might note the short current streak and past suspension, preferring peers with longer histories. High-yield chasers could look elsewhere, as ALV emphasizes capital returns via buybacks (4.35% yield) alongside dividends for total shareholder yield near 7.5%. Overall, it fits portfolios seeking reliable auto-sector exposure without excessive risk.

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