Zimmer Biomet Holdings (ZBH) DIvidends Date & History

Key Takeaways

• Zimmer Biomet Holdings (ZBH) offers a trailing dividend yield of 1.04%, paid quarterly at $0.24 per share.
• The payout ratio stands at 27.04%, indicating strong sustainability and ample room for potential growth.
• Free cash flow of $1.172 billion in 2025 easily covers the annual dividend obligation of approximately $190 million.
• Dividend history shows consistency with no recent cuts and modest growth over the past decade at a CAGR of about 0.87%.
• Compared to peers, ZBH's yield aligns closely with SYK (1.04%) but trails MDT (3.2%).
• Recent ex-dividend date was March 31, 2026, with payment on April 30, 2026.

Dividend Overview

Zimmer Biomet Holdings, Inc. (ZBH), a leading orthopedics and musculoskeletal healthcare company, maintains a modest dividend policy characterized by quarterly payments of $0.24 per share, equating to an annual dividend of $0.96. This delivers a trailing yield of 1.04% and a forward yield of 1.05%, based on recent share prices around $92-$95. The 5-year average yield is 0.83%, positioning ZBH as neither a high-yield nor aggressive growth stock but rather a steady payer in the growth-oriented medical devices sector. With a low payout ratio and robust cash generation, the dividend appeals to investors seeking reliability over high income.

Dividend History and Growth

Zimmer Biomet has paid dividends consistently for over a decade, with quarterly distributions stable at $0.24 per share since at least 2023. Historical data shows gradual progression: annual payouts hovered around $0.96 in recent years, following modest increases from earlier levels like $0.96 in 2016-2020. The 10-year dividend growth CAGR is approximately 0.87%, reflecting a conservative approach prioritizing reinvestment in R&D and acquisitions over rapid hikes. No dividend cuts have occurred in recent history, underscoring payment reliability amid the company's focus on orthopedics innovation.

Dividend Sustainability and Payout Ratio

The dividend's sustainability is bolstered by a payout ratio of 27.04%, well below the healthcare sector average of 39.3%, leaving significant earnings retention for growth. In 2025, ZBH generated $1.697 billion in operating cash flow and $1.172 billion in free cash flow (FCF), dwarfing the ~$190 million annual dividend. Debt levels are manageable, with debt-to-equity improving to 60.1% and operating cash flow covering interest comfortably. This financial stability supports ongoing payments even in fluctuating medtech demand.

Dividend Compared to Industry Peers

In the medical devices industry, ZBH's 1.04% yield is competitive with growth peers like Stryker (SYK) at 1.04% but lower than diversified giant Medtronic (MDT) at around 3.2%. Boston Scientific (BSX) pays no dividend, emphasizing reinvestment, while Teleflex (TFX) offers under 1%. ZBH's profile—low yield but superior coverage—suits it for conservative income alongside capital appreciation potential versus higher-yield but riskier options.

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Is This Stock Attractive for Dividend Investors?

Zimmer Biomet Holdings (ZBH) may appeal to conservative dividend investors prioritizing stability over high yields, given its low 27% payout ratio and strong FCF coverage. Those seeking modest income with growth potential in orthopedics—driven by robotics and aging demographics—could find the 1.04% yield complementary to capital gains. It suits long-term holders comfortable with sector volatility, as the consistent quarterly payouts and lack of cuts provide reliability. However, high-yield seekers may look elsewhere, like MDT, while growth-oriented dividend investors might appreciate the balance. Overall, ZBH fits portfolios blending income security with medtech exposure, though economic pressures on elective procedures warrant monitoring.

Disclaimer

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