Weis Markets (WMK) DIvidends Date & History

Key Takeaways

• Weis Markets pays a quarterly dividend of $0.34 per share, equating to an annual dividend of $1.36 and a forward dividend yield of approximately 1.75% based on recent trading levels.
• The dividend is supported by a conservative earnings-based payout ratio of roughly 33% to 37%, indicating that the company retains the majority of its profits for reinvestment and balance sheet strength.
• WMK has paid uninterrupted dividends for over four decades, with no dividend cuts in at least 14 consecutive years, reflecting a disciplined and shareholder-friendly capital return policy.
• Dividend growth has been modest, with the last increase occurring in late 2022, and the five-year compound annual growth rate (CAGR) stands at approximately 1.86%.
• Free cash flow (FCF) coverage has tightened due to elevated capital expenditures on store remodels and technology upgrades, making cash flow a key area to monitor for dividend sustainability.
• The company's low debt-to-equity ratio of roughly 12.7% and current ratio above 2.0 provide a strong financial cushion that supports ongoing dividend payments even during periods of weaker cash generation.

Dividend Overview

WMK — Weis Markets, Inc. — is a regional grocery chain operating approximately 200 supermarkets across seven Mid-Atlantic states. The company sits within the Consumer Staples sector, a segment known for steady demand regardless of economic conditions. Weis Markets pays a quarterly cash dividend of $0.34 per share, resulting in an annualized dividend of $1.36 per share. At recent stock prices near $78, this translates to a forward dividend yield of roughly 1.75%. The next ex-dividend date is July 27, 2026, with the payment scheduled for August 10, 2026. Weis Markets is best characterized as a modest-yield, defensive dividend stock rather than a high-yield or aggressive dividend growth play. The company's dividend is rooted in a long-standing commitment to returning capital to shareholders, supported by a conservative earnings-based payout ratio and a robust, lightly leveraged balance sheet.

Dividend History and Growth

Weis Markets has maintained a remarkably consistent dividend track record. The company has paid dividends for at least 41 consecutive years and has not reduced its payout in over 14 years. Historically, the quarterly dividend has moved gradually higher — from $0.29 per share in the early 2010s to $0.30, then $0.31, $0.32, and finally $0.34 per share, where it has remained since November 2022. The most recent increase, a 6.25% raise from $0.32 to $0.34, took effect with the November 2022 payment. Since then, the dividend has been held flat for 15 consecutive quarters. The five-year dividend growth CAGR is approximately 1.86%, reflecting a slow-but-steady approach. This pattern is consistent with a family-controlled, conservatively managed regional grocer that prioritizes financial stability and store investment over aggressive payout growth. In 2011 and 2004, the company also distributed special dividends of $1.00 per share, demonstrating a willingness to return excess capital to shareholders when circumstances permit.

Dividend Sustainability and Payout Ratio

From an earnings standpoint, Weis Markets' dividend appears well covered. The trailing twelve-month (TTM) earnings-based payout ratio ranges between 33% and 37%, depending on the reporting period. For a grocery retailer operating on thin margins — net profit margin hovers around 2% — this level of retention leaves ample room to reinvest in store upgrades, distribution infrastructure, and technology. However, the free cash flow picture warrants closer scrutiny. Heavy capital expenditures on store remodels, new locations, and e-commerce capabilities have pressured FCF in recent quarters. The FCF payout ratio has spiked in certain periods, signaling that dividend payments have at times exceeded free cash flow generation. This is partially offset by the company's strong balance sheet: Weis Markets holds approximately $199 million in cash and marketable securities against roughly $174 million in total debt, yielding a debt-to-equity ratio of just 12.7%. A current ratio above 2.0 further underscores near-term liquidity. While cash flow volatility means dividend investors should monitor capital spending trends, the company's fortress-like balance sheet provides a substantial margin of safety for continued dividend payments.

Dividend Compared to Industry Peers

Within the grocery and food retail industry, Weis Markets' dividend profile occupies a middle ground. Its yield of approximately 1.75% sits below that of larger peers such as KR (Kroger), which yields around 2.15% to 2.50%, and well below ACI (Albertsons Companies), whose yield has ranged from 3.5% to over 5%. However, WMK's yield exceeds those of big-box retailers like WMT (Walmart) at roughly 0.85% and COST (Costco) at roughly 0.59%. Among regional grocery peers, IMKTA (Ingles Markets) and VLGEA (Village Super Market) offer comparable or higher yields. WMK's earnings payout ratio of around 33% to 37% is competitive with — and in many cases lower than — its grocery peers, suggesting more room for future dividend growth or resilience during downturns. The sector median dividend yield for Consumer Defensive stocks is approximately 2.57%, placing WMK below the median, which reflects its focus on reinvestment and conservative capital allocation rather than maximizing current income.

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Is This Stock Attractive for Dividend Investors?

Weis Markets is likely to appeal most to conservative, long-term-oriented dividend investors who prioritize reliability and balance sheet strength over high current yield or rapid payout growth. The stock's 41-year dividend payment history, 14-year streak without a cut, and low earnings payout ratio make it a candidate for investors seeking a defensive income component within a diversified portfolio. Its low beta of approximately 0.44 indicates that the stock has historically been less volatile than the broader market, which may appeal to risk-averse investors. However, investors whose primary objective is maximizing current income may find the ~1.75% yield underwhelming relative to higher-yielding grocery peers or other income-oriented sectors. Similarly, dividend growth investors may be frustrated by the flat payout since late 2022 and the modest historical growth rate. The tension between strong earnings coverage and tighter free cash flow coverage also means that investors should monitor capital expenditure levels and operating cash flow trends. Overall, WMK is best suited for buy-and-hold investors who value dividend consistency, financial conservatism, and the defensive characteristics of the Consumer Staples sector over the allure of high yield or aggressive growth.

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