Avery Dennison (AVY) DIvidends Date & History

Key Takeaways

• Avery Dennison Corporation (AVY) offers a trailing dividend yield of 2.21%, competitive in the packaging sector.
• Quarterly dividend of $0.94 per share, equating to an annual $3.76, paid consistently.
• 15-year streak of consecutive dividend increases, with 5-year growth rate around 9%.
• Payout ratio of 42.09% indicates strong sustainability, well-covered by earnings and free cash flow.
• Recent ex-dividend date: March 4, 2026; payment date: March 18, 2026.
• Financial stability supported by $881.4 million in operating cash flow (TTM) and $618.59 million levered free cash flow (TTM).

Dividend Overview

Avery Dennison Corporation (AVY), a leader in labeling and packaging materials, maintains a reliable quarterly dividend policy. The company currently pays $0.94 per share each quarter, totaling $3.76 annually, which translates to a trailing yield of 2.21% and forward yield of 2.27%. This positions AVY as a dividend growth stock rather than a high-yield play, appealing to investors seeking steady income with potential appreciation. Payments occur every three months, with the most recent ex-dividend date on March 4, 2026, and payment on March 18, 2026. The company's commitment to shareholders is evident in its long-term strategy balancing reinvestment in innovation with consistent returns.

Dividend History and Growth

Avery Dennison has a robust dividend history marked by reliability and growth. The company boasts a 15-year streak of consecutive annual increases, underscoring its dedication to shareholder value. Over the past five years, dividends have grown at an average rate of approximately 9%, with the latest quarterly payout raised to $0.94. No dividend cuts have occurred in recent decades, reflecting operational resilience amid industry cycles. This consistent upward trajectory aligns with AVY's strategy of leveraging its materials science expertise for sustainable profitability.

Dividend Sustainability and Payout Ratio

The dividend appears highly sustainable, with a payout ratio of 42.09%—well below levels that might strain finances. Earnings per share (EPS) trailing twelve months (TTM) stand at $8.79, providing ample coverage for the $3.76 annual dividend. Free cash flow (levered TTM) of $618.59 million comfortably supports dividend obligations, estimated at around $330 million annually based on outstanding shares. Operating cash flow of $881.4 million further bolsters this, despite a total debt-to-equity ratio of 176.34% (mrq), which is manageable given strong EBITDA of $1.42 billion and return on equity of 30.21% (TTM). Overall financial health supports ongoing payments and potential future raises.

Dividend Compared to Industry Peers

In the packaging and containers industry, AVY's 2.21% trailing yield is solid and aligns closely with peers. Packaging Corporation of America (PKG) offers around 2.35%, while Silgan Holdings (SLGN) yields about 2.0%. Higher-yield options like Sonoco Products (SON) at 4.46% exist, but often with higher payout ratios. Lower yields appear in AptarGroup (ATR) at 1.55% and Crown Holdings (CCK) at 1.03%. AVY's profile stands out for its growth streak amid average sector yields of 2-3%.

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Is This Stock Attractive for Dividend Investors?

Avery Dennison Corporation (AVY) may appeal to dividend growth investors prioritizing consistent raises over ultra-high yields, given its 15-year streak and 9% five-year growth rate. Income-oriented portfolios could find the 2.2% yield reliable, supported by a conservative 42% payout ratio and robust cash flows in a stable packaging sector. Long-term holders might value the balance of moderate yield, earnings coverage, and exposure to essential materials demand across industries like retail and logistics. Conservative investors may appreciate the lack of dividend cuts and strong free cash flow generation, though moderate debt levels warrant monitoring. Balanced portfolios seeking industrials with income could include AVY for diversification. Suitability depends on individual risk tolerance and market conditions; yields and growth trends provide a foundation for analysis.

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