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Telefonaktiebolaget LM Ericsson (ERIC.B.ST) logo

Telefonaktiebolaget LM Ericsson

EURO STOXX 600
ERIC.B.ST|Technology|Communication Equipment||P/E 14.5|MCap 290.8B|NASDAQ Stockholm

Last update: May 9, 2026 at 09:32

Dividend Safety Rating

85/ 100Very Safe

ERIC.B.ST's dividend appears very safe. Strengths include a 38.7% earnings payout ratio & 29.6% fcf payout ratio. Areas of concern: Volatile profit margin stability. The dividend has been growing at a 13.70% 5-year CAGR.

Based on 15 of 15 metrics

Strengths

  • Earnings Payout Ratio: 38.7%Low earnings payout ratio leaves room to grow the dividend.
  • FCF Payout Ratio: 29.6%Free cash flow comfortably covers the dividend.
  • CFO Payout Ratio: 20.1%Operating cash flow strongly supports the payout.

Risks

  • Profit Margin Stability: VolatileProfit margins have been volatile.

Payout & Coverage

Very Safe
Earnings Payout Ratio
38.7%Very Safe
FCF Payout Ratio
29.6%Very Safe
CFO Payout Ratio
20.1%Very Safe
Interest Coverage
15.1xVery Safe

Balance Sheet

Safe
Net Debt / Total Assets
-1.3%Very Safe
Current Ratio
1.1xCaution
Debt-to-Equity
38.1Very Safe

Profitability

Safe
Return on Equity
27.0%Very Safe
Operating Margin
10.8%Caution
Gross Margin
47.2%Safe
Profit Margin Stability
VolatileWarning

Dividend Track Record

Very Safe
Dividend Streak
11+ yrsVery Safe
Dividend Cut
NoneVery Safe
5-Year Dividend CAGR
13.7%Very Safe
Earnings Stability
Mostly StableCaution

About Telefonaktiebolaget LM Ericsson

Telefonaktiebolaget LM Ericsson (publ), together with its subsidiaries, provides mobile connectivity solutions to communications service providers, enterprises, and the public sector in the Americas, Europe, the Middle East, Africa, Northeast Asia, Southeast Asia, Oceania, and India. It operates through Networks; Cloud Software and Services; Enterprise; and Other segments. The Networks segment offers hardware, software, and service offerings for intelligent, reliable and flexible 5G networks. This segment also provides energy-efficient RAN with an AI-native software architecture deployable on Ericsson silicon and third-party CPUs/GPUs; transport networks; and active/ passive antennas, as well as deployment and lifecycle management services. The Cloud Software and Services segment provides core networks, network management, business and operations support systems, and network operations delivered as managed services, including secure data and voice connectivity, service monetization and orchestration tools, and network management services. The Enterprise segment offers intelligent networking and advanced communications software solutions comprising global communications platform, wireless wide area networks (WWAN), and private 5G networks. The Other segment includes RedBee Media that prepares and distributes live and on-demand video services for broadcasters, sports leagues, and communications service providers. The company was formerly known as Allmanna Telefon AB LM Ericsson and changed its name to Telefonaktiebolaget LM Ericsson (publ) in January 1926. Telefonaktiebolaget LM Ericsson (publ) was founded in 1876 and is headquartered in Stockholm, Sweden.

Dividend Overview

Dividend Yield

2.66%

Annual Dividend

SEK 2.92

Frequency

Semi-Annual

Payout Ratio

38.73%

FCF Payout Ratio

29.58%

Stock Price

52-Week Range

SEK 65.94 SEK 112.60

Dividend History (2016–2025)

ERIC.B.ST annual dividend per share and yield history

Earnings & Profitability

ERIC.B.ST earnings per share and net profit margin

Key Dates

Next Ex-Dividend Date

September 28, 2026

Next Payment Date

Dividend Growth

3-Year Dividend CAGR

4.46%

5-Year Dividend CAGR

13.70%

10-Year Dividend CAGR

-1.75%

3-Year Total Growth

14.00%

5-Year Total Growth

90.00%

10-Year Total Growth

-16.18%

Income Calculator

ERIC.B.ST Dividend Calculator

Total Investment

SEK 0.00

Annual Income

SEK 292.00

Quarterly Income

SEK 73.00

Monthly Income

SEK 24.33

Frequently Asked Questions

What is ERIC.B.ST's current dividend yield?
Telefonaktiebolaget LM Ericsson (ERIC.B.ST) currently has a dividend yield of 2.66%, based on a stock price of — and an annual dividend of SEK 2.92.
When is ERIC.B.ST's next dividend payment date?
ERIC.B.ST's next ex-dividend date is 2026-09-28 and the next payment date is —. You must own the stock before the ex-dividend date to receive the upcoming payment.
How much does ERIC.B.ST pay in dividends per year?
Telefonaktiebolaget LM Ericsson paid SEK 2.85 per share in annual dividends in 2025. The dividends are paid semi-annual.
Has ERIC.B.ST been increasing its dividend?
Telefonaktiebolaget LM Ericsson has grown its dividend at a 5-year CAGR of 13.70% and a 10-year CAGR of -1.75%.
Is ERIC.B.ST's dividend safe?
Telefonaktiebolaget LM Ericsson has a payout ratio of 38.73%. Its free cash flow payout ratio is 29.58%. A payout ratio below 60% is generally considered sustainable.
How is ERIC.B.ST's Dividend Safety Rating calculated?
The Dividend Safety Rating evaluates Telefonaktiebolaget LM Ericsson's dividend sustainability across four categories: Payout & Coverage (30%), Balance Sheet (20%), Profitability (20%), and Dividend Track Record (30%). Each metric is rated from "Very Safe" to "Danger" based on industry-standard thresholds, with sector-specific adjustments for technology companies. The overall score ranges from 0 to 100.

Want to understand how we rate dividend safety? Read our full methodology

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This page is not investment advice. The content is for informational purposes only and should not be construed as a recommendation to buy, sell, or hold any security. Always do your own research and consult a qualified financial advisor before making investment decisions.

Financial data, including dividend history, earnings, balance sheet metrics, and the Dividend Safety Rating, is provided for informational purposes only. Data may be delayed or differ from official filings. Past performance does not guarantee future results. Always verify with official sources before making investment decisions.

Market data provided by Twelve Data.