Gen Digital (GEN) DIvidends Date & History

Key Takeaways

• Gen Digital Inc. (GEN) offers a forward dividend yield of 2.58%, significantly above the software industry average.
• Quarterly dividend of $0.125 per share, equating to an annual payout of $0.50.
• Payout ratio of 51.55% indicates strong sustainability, well-covered by earnings and free cash flow of $1.32 billion (trailing twelve months).
• No recent dividend growth, positioning GEN as a steady income play rather than a growth stock.
• Higher yield compared to cybersecurity peers like Palo Alto Networks (PANW) and CrowdStrike (CRWD), which pay no dividends.
• Recent ex-dividend date: February 13, 2026; payment date: March 11, 2026.

Dividend Overview

Gen Digital Inc. (GEN), a leader in cybersecurity software including brands like Norton and Avast, maintains a consistent quarterly dividend policy. The company pays $0.125 per share each quarter, resulting in an annual dividend of $0.50 and a forward yield of 2.58% based on a recent stock price around $19.38. This positions GEN as a modest-to-high yield stock within the technology sector, appealing to income-focused investors. The dividend is reliably paid every three months, with the most recent ex-dividend date on February 13, 2026, and payment on March 11, 2026. While not a dividend growth stock, its profile offers stability in a volatile industry.

Dividend History and Growth

Gen Digital has paid consistent quarterly dividends of $0.125 per share in recent years, with no increases or cuts observed over the trailing twelve months or the past five years, resulting in a 0% dividend growth rate (CAGR). The company, formerly NortonLifeLock, adopted this steady payout approach post its 2022 rebranding and Avast acquisition. Historical data shows flat growth, lacking a dividend increase streak, but demonstrating payment reliability amid sector challenges. This strategy prioritizes consistent returns over aggressive expansion, aligning with mature software firms focused on shareholder income.

Dividend Sustainability and Payout Ratio

The dividend appears highly sustainable, with a payout ratio of 51.55%, meaning just over half of earnings are distributed, leaving ample room for reinvestment or buffers. Trailing twelve-month levered free cash flow (FCF) stands at $1.32 billion, easily covering the annual dividend obligation estimated at around $300 million (based on outstanding shares). Debt levels are manageable in the context of recurring subscription revenue from cybersecurity products. Overall financial stability, including positive earnings coverage, supports ongoing payments without strain.

Dividend Compared to Industry Peers

In the Software - Infrastructure industry, where the average dividend yield is approximately 0.13%, GEN's 2.58% yield stands out prominently. Cybersecurity peers like CrowdStrike (CRWD) and Palo Alto Networks (PANW) offer no dividends, prioritizing growth. Broader software names such as Adobe (ADBE) also pay none, while Microsoft (MSFT) yields about 0.7% and Oracle (ORCL) around 1.3%. GEN provides above-average income relative to peers.

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Is This Stock Attractive for Dividend Investors?

Gen Digital Inc. (GEN) may appeal to conservative income investors seeking reliable yield in the technology space, particularly those comfortable with cybersecurity exposure. Its 2.58% yield, backed by a sub-52% payout ratio and robust free cash flow, offers stability without the growth expectations of high-flyers like CrowdStrike. However, the lack of dividend increases limits attraction for dividend growth enthusiasts pursuing compounding streaks. Long-term holders valuing subscription-based revenue predictability over rapid appreciation could find it suitable, especially versus non-dividend-paying peers. Balanced portfolios might allocate modestly, weighing tech sector risks like competition and economic sensitivity against income generation.

Disclaimer

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