- BF-B dividends offer a 3.25% forward yield based on a quarterly payout of $0.231 per share.
- Brown-Forman’s next ex-dividend date is September 3, 2026, with payment due October 1, 2026.
- Recent earnings and revenue declines remain the central risk to future dividend growth.
Brown-Forman (BF-B), owner of Jack Daniel’s and Woodford Reserve, closed at $28.42, up 1.4% in the latest session. Its quarterly dividend of $0.231 per share produces an annualized payout of $0.924 and a 3.25% forward yield.
That BF-B dividend yield is above the company’s reported five-year average yield of 1.89%, largely reflecting a share price below its 52-week high of $31.92. BF-B trades about 11% below that peak but has recovered materially from its $22.61 52-week low.
September dividend calendar
BF-B’s next ex-dividend date is September 3, 2026, with payment scheduled for October 1, 2026. Investors generally must own shares before the ex-dividend date to receive the upcoming $0.231 quarterly distribution.
A shareholder owning 100 shares would receive $23.10 before taxes. However, the stock price normally adjusts lower by roughly the dividend amount on the ex-dividend date, making a dividend-capture purchase not risk-free.
The more relevant question is whether Brown-Forman’s brands, cash flow, and valuation support holding the stock through multiple dividend cycles.
Dividend growth remains steady but modest
Brown-Forman’s dividend has increased at a 2.3% one-year rate, while its three-, five-, and 10-year dividend growth rates are 4.5%, 5.2%, and 5.6%, respectively. The latest quarterly dividend was unchanged from the previous payment, suggesting the most recent distribution did not include a new increase.
Its Chowder score, combining current yield and five-year dividend growth, is 8.45. That is respectable for a defensive consumer staples name, but below the double-digit range often sought by investors prioritizing high income and robust dividend growth.
Over the past decade, BF-B’s per-share dividend grew at a 7.3% compound annual rate, while reinvested dividends helped produce a 10.9% annualized total return. Historical results do not assure future returns, but they show the potential value of dividend reinvestment alongside a durable brand portfolio.
Valuation and income risk
At $28.42, Brown-Forman trades at a trailing price-to-earnings ratio of 18.3, with a market capitalization of roughly $13.0 billion. The company reports a current ratio of 3.24 and debt equal to 34% of capital.
The central risk is earnings momentum, with reported net income down 17.7% over the past year and annual revenue down 1.2%. A 3.25% yield can cushion returns, but sustained BF-B dividend growth depends on stabilizing sales and profits.
For investors comfortable with spirits-industry exposure, BF-B offers quarterly income and a long record of dividend compounding. Prospective buyers should consider scaling into positions rather than chasing the September payment and monitor the company’s September 2 earnings report for signs that earnings pressure is easing.
