Novartis AG (FRA:NOT0) Dividend Payout Ratio: 1.68 (As of Mar. 2026) — 100% Above Median


FRA:NOT0 Novartis AG FRA:NOT0
83 GF Score
Price €18.20
GF Value €15.09
Valuation Modestly Overvalued
! 7 Warning Signs
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What is Novartis AG Dividend Payout Ratio?

Novartis AG FRA:NOT0 83 Dividend Payout Ratio is 1.68 as of Mar. 2026, which is 100% above its 10-year median of 0.84. GuruFocus rates FRA:NOT0 with a GF Score™ of 83/100 and a GF Value™ of €15.09 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 444 Drug Manufacturers companies, Novartis AG ranks worse than 78.15% on this metric.

The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period. Novartis AG's Dividend Payout Ratio for the months ended in Mar. 2026 was 1.68.

The historical rank and industry rank for Novartis AG's Dividend Payout Ratio or its related term are showing as below:

FRA:NOT0' s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.33   Med: 0.84   Max: 1.19
Current: 0.4

During the past 13 years, the highest Dividend Payout Ratio of Novartis AG was 1.19. The lowest was 0.33. And the median was 0.84.

FRA:NOT0's Dividend Payout Ratio is ranked worse than
78.15% of 444 companies
in the Drug Manufacturers industry
Industry Median: 0.375 vs FRA:NOT0: 0.40

As of today (2026-07-02), the Dividend Yield % of Novartis AG is 1.98%.

During the past 13 years, the highest Trailing Annual Dividend Yield of Novartis AG was 4.61%. The lowest was 1.98%. And the median was 3.84%.

Novartis AG's Dividends per Share for the months ended in Mar. 2026 was €0.35.

During the past 12 months, Novartis AG's average Dividends Per Share Growth Rate was 3.70% per year. During the past 3 years, the average Dividends Per Share Growth Rate was 0.40% per year. During the past 5 years, the average Dividends Per Share Growth Rate was 3.00% per year. During the past 10 years, the average Dividends Per Share Growth Rate was 1.90% per year.

During the past 13 years, the highest 3-Year average Dividends Per Share Growth Rate of Novartis AG was 18.50% per year. The lowest was 0.00% per year. And the median was 5.30% per year.

The growth rate is calculated with least square regression.

For more information regarding to dividend, please check our Dividend Page.

* Please note that "special dividend" is not included in the calculation of dividend per share and related fields.

Novartis AG (FRA:NOT0) Dividend Payout Ratio Explanation

In dividends investing, Dividend 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.

Novartis AG Dividend Payout Ratio Related Terms

Novartis AG Dividend Payout Ratio Historical Data

* Premium members only.

The historical data trend for Novartis AG's Dividend Payout Ratio can be seen below:

* 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.

Novartis AG Dividend Payout Ratio Chart

Novartis AG Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Dividend Payout Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 0.00 0.00 0.00 0.35

Novartis AG Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Dividend Payout Ratio Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.39 0.00 0.00 0.00 1.68

FRA:NOT0 vs LLY, JNJ, ABBV: Dividend Payout Ratio Comparison

For the Drug Manufacturers - General subindustry, Novartis AG's Dividend Payout Ratio, along with its competitors' market caps and Dividend Payout Ratio 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.

Novartis AG Dividend Payout Ratio vs Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Novartis AG's Dividend Payout Ratio distribution charts can be found below:

* The bar in red indicates where Novartis AG's Dividend Payout Ratio falls into.


FRA:NOT0
83GF Score
Novartis AG FRA:NOT0
Dividend Payout Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
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Novartis AG Dividend Payout Ratio Calculation

The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period.

Novartis AG's Dividend Payout Ratio for the fiscal year that ended in Dec. 2025 is calculated as

Dividend Payout Ratio=Dividends per Share (A: Dec. 2025 )/ EPS without NRI (A: Dec. 2025 )
=0.316/ 0.911
=0.35

Novartis AG's Dividend Payout Ratio for the quarter that ended in Mar. 2026 is calculated as

Dividend Payout Ratio=Dividends per Share (Q: Mar. 2026 )/ EPS without NRI (Q: Mar. 2026 )
=0.352/ 0.209
=1.68

* 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.

Frequently Asked Questions Learn more about Dividend Payout Ratio →
What does a Dividend Payout Ratio of 1.68 mean?
Novartis AG (FRA:NOT0) has a Dividend Payout Ratio of 1.68 as of Mar. 2026. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Novartis AG and its competitors. This is 100% above median its historical median of 0.84. Over the past decade, Novartis AG's Dividend Payout Ratio has ranged from 0.33 to 1.19. According to the industry distribution chart, Novartis AG ranks #347 out of 444 companies in the Drug Manufacturers industry, placing it in the top 78.2%.
Is Novartis AG's Dividend Payout Ratio too high?
Novartis AG's current Dividend Payout Ratio of 1.68 is 100% above median its 10-year median of 0.84. Over the past 10 years, this metric has ranged from a low of 0.33 to a high of 1.19. The Drug Manufacturers industry median Dividend Payout Ratio is 0.38. Novartis AG's value of 1.68 is 348% above this industry median. Based on the distribution chart, Novartis AG ranks #347 out of 444 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Novartis AG has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Novartis AG's Dividend Payout Ratio compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Novartis AG ranks #347 out of 444 companies for Dividend Payout Ratio. This places Novartis AG in the lower half of its industry. The industry median Dividend Payout Ratio is 0.38. Novartis AG's value of 1.68 is 348% above this benchmark. Historically, Novartis AG's own Dividend Payout Ratio has ranged from 0.33 to 1.19 over the past decade. While the company's 10-year median is 0.84 vs. the industry median of 0.38, Novartis AG has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Dividend Payout Ratio for a Drug Manufacturers company?
The median Dividend Payout Ratio among Drug Manufacturers companies is 0.38, based on 444 companies in the industry. Companies in the top quartile (top 25%) have a Dividend Payout Ratio significantly above this median, while those in the bottom quartile fall well below. However, Dividend Payout Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Novartis AG's current Dividend Payout Ratio of 1.68 is 348% 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 Dividend Payout Ratio mean?
A high Dividend Payout Ratio can signal that a stock is expensive relative to its fundamentals. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Novartis AG and its competitors. For the Drug Manufacturers industry, the median Dividend Payout Ratio is 0.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Novartis AG's current Dividend Payout Ratio is 1.68, which is 100% above median its own 10-year median of 0.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Novartis AG stock overvalued right now?
Based on GuruFocus' analysis, Novartis AG (FRA:NOT0) is currently considered Modestly Overvalued. The stock's GF Value™ is €15.09, compared to a current price of €18.20 — trading 20.6% above its estimated fair value. The current Dividend Payout Ratio is 1.68, which is 100% above median its 10-year median of 0.84 and 348% above the Drug Manufacturers industry median of 0.38. Novartis AG's overall GF Score™ is 83/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Dividend Payout Ratio calculated?
Dividend Payout Ratio is calculated from a company's financial statements. For Novartis AG (FRA:NOT0), the current Dividend Payout Ratio is 1.68 as of Mar. 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 Novartis AG (FRA:NOT0) Overvalued in 2026?

Based on GuruFocus' analysis, Novartis AG stock appears to be overvalued. The current stock price of €18.20 is trading 20.6% above its estimated GF Value™ of €15.09. GuruFocus considers Novartis AG to be Modestly Overvalued.

Key valuation signals for FRA:NOT0:

  • Dividend Payout Ratio: 1.68 (100% above median its 10-year median of 0.84)
  • GF Value™: €15.09 vs. price of €18.20 (20.6% above fair value)
  • GF Score™: 83/100 with 7 warning signs
  • Industry Position: 348% above the Drug Manufacturers median (#347 of 444)

No single metric tells the full story. See the FRA:NOT0 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Novartis AG Business Description

Address Lichtstrasse 35, Basel, CHE, 4056
Novartis develops and manufactures innovative drugs. Key areas of drug development are oncology, immunology, neuroscience, respiratory, and cardiovascular, renal, and metabolic. It also has an established medicines business, which includes off-patent franchises. The company sells its products globally, with the United States constituting close to one-third of total revenue.
83GF Score

Get the complete analysis for FRA:NOT0

Dividend Payout Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€18.20
Price
€15.09
GF Value