- CARR dividends now yield 1.68 percent as shares trade well below the 52 week high
- Five year dividend growth rate sits near 19 percent despite recent earnings pressure
- Total shareholder return has reached 67 percent over five years with dividends reinvested
Carrier Global continues to attract attention from income investors after a notable pullback in its share price. With CARR dividends yielding 1.68 percent, the stock is drawing interest from those watching the recent weakness in valuation.
Shares currently trade around 53.59, leaving the stock almost 10 percent lower than a year ago. This decline contrasts with a multi year stretch of steady revenue expansion even as EPS has slipped.
Dividend Snapshot
Carrier pays a quarterly dividend of 0.225 per share, or 0.90 annually. This produces a 1.68 percent yield, which is above the company’s five year average yield of 1.32 percent.
The most recent payout did not grow, but CARR dividends still carry an impressive five year annualized growth rate near 19 percent. Total lifetime dividends per share have reached 3.64 since Carrier became publicly traded in 2020.
The next ex dividend date is 20 January 2026, followed by payment on 9 February. This timing may appeal to investors planning income allocations for early 2026.
Where Fundamentals Stand
Carrier’s near term picture remains mixed. Organic revenue growth is slowing, and HVAC demand has softened. These trends were highlighted in the summary as a deceleration in HVAC demand is becoming a material risk.
This dynamic matters because consistent earnings strength supports long term dividend growth and dividend safety. Lower EPS does not necessarily signal structural weakness, but it does require monitoring.
Carrier has taken steps to strengthen its portfolio. These include the divestiture of Riello and the authorization of a new buyback program. Although shares trade at about 33 times earnings, this valuation is within the typical range for high quality HVAC peers.
The stock also remains well below its 52 week high of 81.09, leaving some investors to view the pullback as a possible entry opportunity for long term dividend exposure.
The Long Term Total Return Angle
Carrier’s total return over five years stands at roughly 67 percent with dividends reinvested. This was noted in the summary as stronger total shareholder return of 67 percent boosted by dividends.
This matters for investors who use DRIP strategies because even modest yielding stocks can produce strong compounding when the business grows steadily.
One key factor to watch is whether Carrier can convert its 3.7 percent revenue increase into improved margins. A stabilization or recovery in EPS would strengthen the potential for renewed dividend growth.
Income Boost Optionality
Investors seeking higher income from CARR dividends are exploring covered call strategies. Elevated option premiums have made these strategies more attractive.
For example, selling the December 62.50 call was shown to raise income potential significantly thanks to a total annualized yield of 12.1 percent. While this caps upside, it may appeal to those comfortable owning the stock at today’s valuation while monetizing volatility.
Carrier’s dividend may not be high, but it remains reliable with a strong growth history. With shares still recovering from recent weakness and ongoing portfolio adjustments, today’s valuation could represent a reasonable entry point for long term income investors who focus on CARR dividends and monitor earnings trends closely through 2026.
