Ferrari (RACE) DIvidends Date & History

Key Takeaways

• Ferrari offers a forward dividend yield of 1.24%, paid annually.
• Recent dividend of €3.615 per share, up 21% from prior year, totaling €640 million.
• Payout ratio around 33-40%, well-covered by earnings and free cash flow (FCF, cash generated after capital expenditures).
• Dividend per share has grown significantly from €0.46 in 2016 to €3.615 in 2026, despite a dip in 2021.
• Modest yield compared to auto peers, reflecting focus on growth and share buybacks.
• Ex-dividend date was April 21, 2026; payment on May 5, 2026.

Dividend Overview

Ferrari (RACE) maintains a conservative dividend policy, distributing profits annually to shareholders while prioritizing reinvestment in its luxury brand. The forward annual dividend stands at $4.25 per share, yielding 1.24% based on recent stock prices around $341. This modest yield positions Ferrari as neither a high-yield stock nor a traditional dividend aristocrat, but rather a growth-oriented payer in the luxury automotive sector. Payments are made once per year, with the latest approval for €3.615 per share in 2026. The policy balances shareholder returns with strategic investments, targeting a payout ratio of around 35% of adjusted net profit.

Dividend History and Growth

Ferrari's dividend has shown robust growth over the past decade, rising from €0.46 per share in 2016 to €3.615 in 2026—a compound annual growth rate exceeding 20% in many years. Key increases include 57% in 2022, 35% in 2024, and 21% for 2026. A temporary decline of 23% occurred in 2021 amid pandemic challenges, but payments have since accelerated. Total distributions grew from €87 million in 2016 to €640 million in 2026. While not boasting a decades-long streak, Ferrari has consistently raised dividends for the past four years, underscoring a commitment to progressive returns amid premium pricing power.

Dividend Sustainability and Payout Ratio

Ferrari's dividend appears highly sustainable, supported by a payout ratio of 33.33% to 40% of earnings. This leaves ample room for growth, with FCF payout around 38%, reflecting strong cash generation from high-margin operations. The company maintains a solid balance sheet with manageable debt levels relative to its €7+ billion annual revenue base. Earnings coverage is robust, with EPS (earnings per share) comfortably exceeding dividend requirements. Ferrari's exclusivity-driven model ensures profitability resilience, positioning the dividend for continued support even in economic downturns.

Dividend Compared to Industry Peers

Ferrari's 1.24% yield is modest relative to luxury auto peers. Porsche (P911), a direct competitor in high-end sports cars, offers yields around 2.4-5.6%, bolstered by broader volume sales. Aston Martin (AML) has suspended dividends amid restructuring, highlighting sector risks. Broader automakers like Toyota average higher yields, but Ferrari's lower payout reflects its premium growth focus over income maximization, appealing to investors valuing brand scarcity over yield chasing.

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Is This Stock Attractive for Dividend Investors?

Ferrari (RACE) may appeal to dividend growth investors seeking steady increases in a luxury niche rather than high immediate income. Its low 1.24% yield suits those prioritizing capital appreciation from brand strength and pricing power over yield. Long-term holders comfortable with auto sector cyclicality could value the progressive payout history and low payout ratio, which signals room for future hikes. Conservative income seekers might find it less suitable due to the modest yield and annual cadence compared to quarterly payers. Overall, it fits portfolios blending growth and modest dividends, particularly for those bullish on Ferrari's exclusivity moat amid electrification trends.

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