Fonterra Co-operative Group (NZSE:FCG) Dividend Payout Ratio: 0.83 (As of Jan. 2026) — 22% Above Median

What is Fonterra Co-operative Group Dividend Payout Ratio?

Fonterra Co-operative Group NZSE:FCG -1.17% 65 Dividend Payout Ratio is 0.83 as of Jan. 2026, which is 22% above its 10-year median of 0.68. GuruFocus rates NZSE:FCG with a GF Score™ of 65/100 and a GF Value™ of NZ$2.96 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 997 Consumer Packaged Goods companies, Fonterra Co-operative Group ranks worse than 85.26% 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. Fonterra Co-operative Group's Dividend Payout Ratio for the months ended in Jan. 2026 was 0.83.

Warning Sign:

If a company's dividend payout ratio is too high, its dividend may not be sustainable. The dividend payout ratio of Fonterra Co-operative Group Ltd is 0.92, which seems too high.

The historical rank and industry rank for Fonterra Co-operative Group's Dividend Payout Ratio or its related term are showing as below:

NZSE:FCG' s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.29 Med: 0.68 Max: 2.32
Current: 0.92

During the past 13 years, the highest Dividend Payout Ratio of Fonterra Co-operative Group was 2.32. The lowest was 0.29. And the median was 0.68.

NZSE:FCG's Dividend Payout Ratio is ranked worse than
85.26% of 997 companies
in the Consumer Packaged Goods industry
Industry Median: 0.44 vs NZSE:FCG: 0.92

As of today (2026-07-04), the Dividend Yield % of Fonterra Co-operative Group is 5.81%.

During the past 13 years, the highest Trailing Annual Dividend Yield of Fonterra Co-operative Group was 18.47%. The lowest was 2.63%. And the median was 7.40%.

Fonterra Co-operative Group's Dividends per Share for the months ended in Jan. 2026 was NZ$0.23.

During the past 12 months, Fonterra Co-operative Group's average Dividends Per Share Growth Rate was 42.30% per year. During the past 3 years, the average Dividends Per Share Growth Rate was 41.30% per year.

During the past 13 years, the highest 3-Year average Dividends Per Share Growth Rate of Fonterra Co-operative Group was 87.10% per year. The lowest was -30.50% per year. And the median was 33.65% 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.

Fonterra Co-operative Group (NZSE:FCG) 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.

Fonterra Co-operative Group Dividend Payout Ratio Related Terms

Fonterra Co-operative Group Dividend Payout Ratio Historical Data

* Premium members only.

The historical data trend for Fonterra Co-operative Group'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.

Fonterra Co-operative Group Dividend Payout Ratio Chart

Fonterra Co-operative Group Annual Data

Trend

Jul16

Jul17

Jul18

Jul19

Jul20

Jul21

Jul22

Jul23

Jul24

Jul25

Dividend Payout Ratio

Get a 7-Day Free Trial

0.30

0.57

0.29

0.88

0.78

Fonterra Co-operative Group Semi-Annual Data
	Jul16	Jan17	Jul17	Jan18	Jul18	Jan19	Jul19	Jan20	Jul20	Jan21	Jul21	Jan22	Jul22	Jan23	Jul23	Jan24	Jul24	Jan25	Jul25	Jan26
Dividend Payout Ratio	Get a 7-Day Free Trial															0.93	0.75	0.63	1.11	0.83

NZSE:FCG vs KHC, GIS, HRL: Dividend Payout Ratio Comparison

For the Packaged Foods subindustry, Fonterra Co-operative Group'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.

Fonterra Co-operative Group Dividend Payout Ratio vs Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, Fonterra Co-operative Group's Dividend Payout Ratio distribution charts can be found below:

* The bar in red indicates where Fonterra Co-operative Group's Dividend Payout Ratio falls into.

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65GF Score

Fonterra Co-operative Group Ltd NZSE:FCG

Dividend Payout Ratio is just one metric. See GF Score™, valuation, warning signs, and more.

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Fonterra Co-operative Group Dividend Payout Ratio Calculation

Fonterra Co-operative Group's Dividend Payout Ratio for the fiscal year that ended in Jul. 2025 is calculated as

Dividend Payout Ratio	=	Dividends per Share (A: Jul. 2025 )	/	EPS without NRI (A: Jul. 2025 )
	=	0.313	/	0.4
	=	0.78

Fonterra Co-operative Group's Dividend Payout Ratio for the quarter that ended in Jan. 2026 is calculated as

Dividend Payout Ratio	=	Dividends per Share (Q: Jan. 2026 )	/	EPS without NRI (Q: Jan. 2026 )
	=	0.233	/	0.28
	=	0.83

Frequently Asked Questions Learn more about Dividend Payout Ratio →

What does a Dividend Payout Ratio of 0.83 mean?

Fonterra Co-operative Group (NZSE:FCG) has a Dividend Payout Ratio of 0.83 as of Jan. 2026. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Fonterra Co-operative Group and its competitors. This is 22% above median its historical median of 0.68. Over the past decade, Fonterra Co-operative Group's Dividend Payout Ratio has ranged from 0.29 to 2.32. According to the industry distribution chart, Fonterra Co-operative Group ranks #850 out of 997 companies in the Consumer Packaged Goods industry, placing it in the top 85.3%.

Is Fonterra Co-operative Group's Dividend Payout Ratio too high?

Fonterra Co-operative Group's current Dividend Payout Ratio of 0.83 is 22% above median its 10-year median of 0.68. Over the past 10 years, this metric has ranged from a low of 0.29 to a high of 2.32. The Consumer Packaged Goods industry median Dividend Payout Ratio is 0.44. Fonterra Co-operative Group's value of 0.83 is 88.6% above this industry median. Based on the distribution chart, Fonterra Co-operative Group ranks #850 out of 997 companies in the Consumer Packaged Goods industry, which is in the bottom quartile relative to peers. Overall, Fonterra Co-operative Group has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.

How does Fonterra Co-operative Group's Dividend Payout Ratio compare to KHC and GIS?

According to the Consumer Packaged Goods industry distribution chart, Fonterra Co-operative Group ranks #850 out of 997 companies for Dividend Payout Ratio. This places Fonterra Co-operative Group in the lower half of its industry. The industry median Dividend Payout Ratio is 0.44. Fonterra Co-operative Group's value of 0.83 is 88.6% above this benchmark. Historically, Fonterra Co-operative Group's own Dividend Payout Ratio has ranged from 0.29 to 2.32 over the past decade. While the company's 10-year median is 0.68 vs. the industry median of 0.44, Fonterra Co-operative Group 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 Consumer Packaged Goods company?

The median Dividend Payout Ratio among Consumer Packaged Goods companies is 0.44, based on 997 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. Fonterra Co-operative Group's current Dividend Payout Ratio of 0.83 is 88.6% 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 Fonterra Co-operative Group and its competitors. For the Consumer Packaged Goods industry, the median Dividend Payout Ratio is 0.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fonterra Co-operative Group's current Dividend Payout Ratio is 0.83, which is 22% above median its own 10-year median of 0.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Fonterra Co-operative Group stock overvalued right now?

Based on GuruFocus' analysis, Fonterra Co-operative Group (NZSE:FCG) is currently considered Significantly Overvalued. The stock's GF Value™ is NZ$2.96, compared to a current price of NZ$4.21 — trading 42.2% above its estimated fair value. The current Dividend Payout Ratio is 0.83, which is 22% above median its 10-year median of 0.68 and 88.6% above the Consumer Packaged Goods industry median of 0.44. Fonterra Co-operative Group's overall GF Score™ is 65/100 with 6 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 Fonterra Co-operative Group (NZSE:FCG), the current Dividend Payout Ratio is 0.83 as of Jan. 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 Fonterra Co-operative Group (NZSE:FCG) Overvalued in 2026?

Based on GuruFocus' analysis, Fonterra Co-operative Group stock appears to be overvalued. The current stock price of NZ$4.21 is trading 42.2% above its estimated GF Value™ of NZ$2.96. GuruFocus considers Fonterra Co-operative Group to be Significantly Overvalued.

Key valuation signals for NZSE:FCG:

Dividend Payout Ratio: 0.83 (22% above median its 10-year median of 0.68)
GF Value™: NZ$2.96 vs. price of NZ$4.21 (42.2% above fair value)
GF Score™: 65/100 with 6 warning signs
Industry Position: 88.6% above the Consumer Packaged Goods median (#850 of 997)

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

Fonterra Co-operative Group Business Description

Industry Consumer Defensive Consumer Packaged Goods

Comparable Companies NZSE:SCL NZSE:SML NZSE:CVT NZSE:MEE XSWX:NESN XPAR:BN BOG:NUTRESA TSE:2802 NSE:NESTLEIND SHSE:603288 KHC SHSE:600887 GIS SZSE:300999 LSE:ABF SGX:F34 DUB:KRZ HRL MEX:BIMBOA HKSE:00288

Address 109 Fanshawe Street, Auckland Central, Auckland, NTL, NZL, 1010

Website https://www.fonterra.com

Fonterra Co-operative Group Ltd operates predominantly in the international dairy industry. The company is involved in the collection, manufacture, and sale of milk and milk-derived products through its ingredients, Consumer and Foodservice channels. The company's reportable segments are Global Markets, Greater China, and Core Operations and the majority of the revenue is generated from its core operations segment. Its primary geographic markets is Asia, China, Australia, New Zealand, the United States, and the Rest of the world.

65GF Score

Get the complete analysis for NZSE:FCG

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

NZ$4.21

Price

NZ$2.96

GF Value

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