Nokia (NOK) DIvidends Date & History

Key Takeaways

• Nokia provides a forward dividend yield of 1.56%, with an annual forward dividend of $0.16 per share, paid quarterly.
• The company resumed dividends in 2019 after a suspension, maintaining quarterly payments since 2022 at around EUR 0.03-0.04 per share.
• Trailing payout ratio stands at 127%, but positive free cash flow and a net cash position of EUR 3.4 billion support ongoing payments.
• Recent one-year dividend growth of 16.77%, though historical consistency has improved post-recovery.
• Yield is comparable to peer ERIC at around 1.8%, but below CSCO's 3%.
• Suitable for investors tolerant of telecom sector volatility seeking modest income with potential growth.

Dividend Overview

Nokia Corporation (NOK), a leading telecom equipment provider, maintains a modest dividend profile with a forward yield of 1.56% and an annual payout of $0.16 per share. Dividends are distributed quarterly, reflecting the company's policy of recurring, stable payments that aim to grow over time, based on earnings, financial position, and outlook. The most recent ex-dividend date was February 3, 2026, with payment on February 12, 2026, at approximately $0.0359 per share. Nokia is neither a high-yield nor a dividend growth aristocrat but offers reliable income for telecom exposure, with total FY2024 distribution of EUR 0.14 per share.

Dividend History and Growth

Nokia resumed ordinary dividends in 2019 following a suspension in 2020 and 2021 amid business challenges. Since 2022, it has paid quarterly dividends consistently, with amounts ranging from EUR 0.02 to 0.04 per share. For FY2024, installments were EUR 0.04, 0.04, 0.03, and 0.03, totaling EUR 0.14. The AGM in April 2026 authorized up to EUR 0.14 for FY2025, with potential record dates in April, July, October 2026, and February 2027. Recent growth shows 16.77% over one year and positive trends over three years, though long-term history includes cuts and no extended growth streak. The strategy emphasizes stability post-recovery, aligning with improving 5G and network demand.

Dividend Sustainability and Payout Ratio

Nokia's trailing twelve-month (TTM) payout ratio is 126.97%, indicating dividends exceed recent earnings, which raises some caution. However, forward metrics and operational improvements suggest better coverage ahead. The company generated EUR 0.2 billion in free cash flow (FCF) in Q4 2025, with a full-year net cash balance of EUR 3.4 billion, providing ample liquidity. Debt levels are manageable relative to cash reserves, and earnings recovery in telecom supports sustainability. While not overly conservative, the balance sheet bolsters confidence in maintaining the modest payout.

Dividend Compared to Industry Peers

In the communications equipment sector, Nokia's 1.56% forward yield aligns closely with peer ERIC at 1.85%, reflecting similar modest profiles for telecom gear makers. Larger networking giant CSCO offers a higher ~3% yield, benefiting from diversified revenue. Industry averages hover around 1-2% for equipment firms, positioning NOK as average, appealing for sector-relative income without excessive risk.

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Is This Stock Attractive for Dividend Investors?

Nokia (NOK) may appeal to income investors comfortable with modest yields around 1.5% and quarterly payouts, particularly those bullish on telecom recovery and 5G deployment. Its stable post-2022 history suits moderate-risk portfolios seeking sector exposure over high income. Dividend growth investors might note recent positive trends but should weigh the lack of a long streak and past suspensions during downturns. Conservative investors may prefer peers with lower payout ratios, given the trailing 127% figure, though FCF and cash reserves mitigate concerns. Overall, it fits long-term holders tolerant of cyclical telecom volatility, balancing income with growth potential in networks and enterprise solutions, without guaranteeing future increases.

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