Telefonaktiebolaget LM Ericsson (publ)
ERICTechnology · Stock · semiannual payer
Forward Yield
3.19%
Annual Dividend
$0.31
Payout Ratio
40%
5-Yr Growth
11.3%
Ex-Date
Apr 2, 2026
Frequency
Semiannual
Summary
As of July 2026, Telefonaktiebolaget LM Ericsson (publ) (ERIC) yields 3.19% ($0.31 per share annually), with a blended fair-value estimate of $14.22 — +45% upside, so it screens as undervalued. Dividend safety grade: B (72/100). 5 years of dividend growth.
Is ERIC a good dividend stock?
Yes, with caveatsTelefonaktiebolaget LM Ericsson (publ) (ERIC) pays a semiannual dividend yielding 3.19% ($0.31/yr), with 5 years of growth and a dividend-safety grade of B. It's a solid income payer, but check the caveats below before buying.
Advantages
- Comfortable payout ratio (40%)
- Strong 11.3% 5-yr dividend growth
Risks
- Cut its dividend in 2020
- Share price is down over the past 5 years
Key Data
- Dividend Yield
- 3.19%
- Payout Ratio
- 40%
- Annual Dividend
- $0.31
- 5-Yr Avg Growth
- 11.3%
- Ex-Dividend Date
- Apr 2, 2026
- Years of Growth
- 5
- Frequency
- semiannual
- Beta
- 0.52
- Market Cap
- $32.4B
- P/E Ratio
- 12.9
- 5-Yr Total Return
- -17%
- 52-Week Range
- $7.16 – $13.77
- Dividend Safety
- B · 72/100
- Ever Cut?
- Yes (2020)
Frequently Asked Questions
ERIC Price — Last 12 Months
Daily close
Price Return
1 Year
+25%
3 Years
+90%
5 Years
-17%
52-Week Range
$7.16 – $13.77
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is ERIC worth?
Undervaluedmedium confidenceOur blended fair-value estimate for Telefonaktiebolaget LM Ericsson (publ) is $14.22 per share, versus a market price of $9.82. That implies 45% of upside — a margin of safety of about 31%.
Fair Value
$14.22
Current Price
$9.82
Upside
+45%
Margin of Safety
31%
How we get there
Dividend discount
Discounts the future dividend stream back to today.
Earnings multiple (Graham)
Graham's earnings-multiple formula, anchored to bond yields.
At today's price, the market is pricing in about -10.0% annual free-cash-flow growth. We model 9.8% — below our estimate, leaving room for upside if the business executes.
Assumptions: 7.0% discount rate (CAPM), 9.8% stage-1 growth, 2.5% terminal growth, $0.76 EPS, $0.31 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
ERIC Dividend Safety Score
Safe
SmarterDividends' proprietary score, backtested against which dividends were actually cut over 15+ years (0.78 AUC). It blends a validated cut-risk model (growth streak, cut history) with current payout, cash-flow and debt. Higher is safer · not investment advice.
Dividend Growth
Total dividends per share by year
Dividend History
| Ex-Date | Pay Date | Amount | Type |
|---|---|---|---|
| Apr 2, 2026 | — | $0.1660 | regular |
| Sep 29, 2025 | — | $0.1480 | regular |
| Mar 27, 2025 | — | $0.1310 | regular |
| Oct 2, 2024 | — | $0.1330 | regular |
| Apr 4, 2024 | — | $0.1290 | regular |
| Sep 28, 2023 | — | $0.1250 | regular |
| Mar 30, 2023 | — | $0.1300 | regular |
| Sep 29, 2022 | — | $0.1160 | regular |
| Mar 30, 2022 | — | $0.1350 | regular |
| Sep 30, 2021 | — | $0.1160 | regular |
| Mar 31, 2021 | — | $0.1210 | regular |
| Oct 1, 2020 | — | $0.0850 | regular |
| Apr 1, 2020 | — | $0.0780 | regular |
| Mar 28, 2019 | — | $0.1090 | regular |
Income Calculator
At $0.31 / yr per share
