During the past 12 months, Telefonaktiebolaget L M Ericsson's average Dividends Per Share Growth Rate was 5.00% per year.
During the past 3 years, the average Dividends Per Share Growth Rate was 4.50% per year.
During the past 5 years, the average Dividends Per Share Growth Rate was 12.70% per year.
During the past 10 years, the average Dividends Per Share Growth Rate was 3.10% per year.
During the past 13 years, the highest 3-Year average Dividends Per Share Growth Rate of Telefonaktiebolaget L M Ericsson was 35.70% per year. The lowest was -37.00% per year. And the median was 4.60% per year.
The growth rate is calculated with least square regression.
For more information regarding to dividend, please check our Dividend Page.
Telefonaktiebolaget L M Ericsson (OTCPK:ERIXF) Forward Dividend Yield % Explanation
Over the long term, the return from dividends has been a significant contributor to the total returns produced by equity securities. Studies by Elroy Dimson, Paul Marsh, and Mike Staunton of Princeton University (2002) found that a market-oriented portfolio, which included reinvested dividends, would have generated nearly 85 times the wealth generated by the same portfolio relying solely on capital gains.
Dividends may also qualify a lower tax rate for investors.
In dividends investing, Payout Ratio and Dividend Growth Rate are the two most important variables for consideration. A lower payout ratio may indicate that the company has more room to increase its dividends.
Telefonaktiebolaget L M Ericsson Forward Dividend Yield % Related Terms
ERIXF vs CSCO, CIEN, MSI: Forward Dividend Yield % Comparison
For the Communication Equipment subindustry, Telefonaktiebolaget L M Ericsson's Forward Dividend Yield %, along with its competitors' market caps and Forward Dividend Yield % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Telefonaktiebolaget L M Ericsson Forward Dividend Yield % vs Hardware Industry
For the Hardware industry and Technology sector, Telefonaktiebolaget L M Ericsson's Forward Dividend Yield % distribution charts can be found below:
* The bar in red indicates where Telefonaktiebolaget L M Ericsson's Forward Dividend Yield % falls into.
Telefonaktiebolaget L M Ericsson Forward Dividend Yield % Calculation
Dividend Yield measures how much a company pays out in dividends each year relative to its share price.
Telefonaktiebolaget L M Ericsson Recent Full-Year* Dividend History
Amount
Ex-date
Record Date
Pay Date
Type
Frequency
Forex Rate
SEK 1.500000
2026-04-01
2026-04-02
2026-04-09
Cash Dividend
semi-annually
SEK:USD 0.107932
SEK 1.420000
2025-09-26
2025-09-29
2025-10-02
Cash Dividend
semi-annually
SEK:USD 0.106203
* GuruFocus has an internal rule that if the most recent dividend payment frequency is at least 4 times a year, then the full year will be calculated according to the frequency of payment or the one-year time frame, whichever is stricter.
* GuruFocus converts dividend currency to local traded share price currency in order to calculate dividend yield. Please refer to the last column "Forex Rate" in the above table.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
What does a Forward Dividend Yield % of 2.92% mean?
Telefonaktiebolaget L M Ericsson (ERIXF) has a Forward Dividend Yield % of 2.92% as of Jun. 25, 2026. Forward dividend yield is the ratio of company's expected dividends to the share price. View historical data on Telefonaktiebolaget L M Ericsson and its competitors. According to the industry distribution chart, Telefonaktiebolaget L M Ericsson ranks #476 out of 1355 companies in the Hardware industry, placing it in the top 35.1%.
Is Telefonaktiebolaget L M Ericsson's Forward Dividend Yield % too high?
Telefonaktiebolaget L M Ericsson's current Forward Dividend Yield % is 2.92%. The Hardware industry median Forward Dividend Yield % is 1.60. Telefonaktiebolaget L M Ericsson's value of 2.92% is 82.5% above this industry median. Based on the distribution chart, Telefonaktiebolaget L M Ericsson ranks #476 out of 1355 companies in the Hardware industry, which is above the industry midpoint. Overall, Telefonaktiebolaget L M Ericsson has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Telefonaktiebolaget L M Ericsson's Forward Dividend Yield % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Telefonaktiebolaget L M Ericsson ranks #476 out of 1355 companies for Forward Dividend Yield %. This puts Telefonaktiebolaget L M Ericsson in the upper half of its industry. The industry median Forward Dividend Yield % is 1.60. Telefonaktiebolaget L M Ericsson's value of 2.92% is 82.5% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward Dividend Yield % for a Hardware company?
The median Forward Dividend Yield % among Hardware companies is 1.60, based on 1,355 companies in the industry. Companies in the top quartile (top 25%) have a Forward Dividend Yield % significantly above this median, while those in the bottom quartile fall well below. However, Forward Dividend Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Telefonaktiebolaget L M Ericsson's current Forward Dividend Yield % of 2.92% is 82.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Forward Dividend Yield % mean?
A high Forward Dividend Yield % can signal that a stock is expensive relative to its fundamentals. Forward dividend yield is the ratio of company's expected dividends to the share price. View historical data on Telefonaktiebolaget L M Ericsson and its competitors. For the Hardware industry, the median Forward Dividend Yield % is 1.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Telefonaktiebolaget L M Ericsson's current Forward Dividend Yield % is 2.92%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Telefonaktiebolaget L M Ericsson stock overvalued right now?
Based on GuruFocus' analysis, Telefonaktiebolaget L M Ericsson (ERIXF) is currently considered Significantly Overvalued. The stock's GF Value™ is $7.38, compared to a current price of $11.42 — trading 54.7% above its estimated fair value. The current Forward Dividend Yield % is 2.92% and 82.5% above the Hardware industry median of 1.60. Telefonaktiebolaget L M Ericsson's overall GF Score™ is 59/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Forward Dividend Yield % calculated?
Forward Dividend Yield % is calculated from a company's financial statements. For Telefonaktiebolaget L M Ericsson (ERIXF), the current Forward Dividend Yield % is 2.92% as of Jun. 25, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Telefonaktiebolaget L M Ericsson (ERIXF) Overvalued in 2026?
Based on GuruFocus' analysis, Telefonaktiebolaget L M Ericsson stock appears to be overvalued.
The current stock price of $11.42 is trading 54.7% above its estimated GF Value™ of $7.38.
GuruFocus considers Telefonaktiebolaget L M Ericsson to be Significantly Overvalued.
Key valuation signals for ERIXF:
Forward Dividend Yield %: 2.92%
GF Value™: $7.38 vs. price of $11.42 (54.7% above fair value)
Industry Position: 82.5% above the Hardware median (#476 of 1355)
No single metric tells the full story. See the ERIXF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Telefonaktiebolaget L M Ericsson Business Description
Ericsson is a networking equipment and software provider, primarily selling mobile networking equipment and services to wireless service providers. Ericsson operates in three segments: networks, cloud software and services, and enterprise. While large wireless carriers are its largest customers, Ericsson has expanded its offerings for large enterprises. These products and services include private 5G networking, contact centers as a service, and application performance interfaces. Ericsson aims to combine its 5G network expertise with cloud-native, as-a-service platforms offering a more comprehensive hardware and software package. Ericsson also monetizes its research and development investments by licensing patents to handset manufacturers.
59GF Score
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