Avnet Raises Quarterly Dividend 5.71% to $0.37

Avnet Inc. (NASDAQ: AVT) raised its quarterly dividend to $0.37 per share from $0.35, an increase of 5.71%. The technology distributor’s shares traded ex-dividend on Sept. 9, 2026.

The higher rate equates to an annualized dividend of $1.48 per share. Based on a share price of $91.74, Avnet’s forward annual dividend yield is 1.6%.

The increase extends Avnet’s record of consecutive annual dividend growth to 13 years. The company has a dividend safety score of 94 out of 100, corresponding to an A grade.

Business context

Avnet distributes electronic components and provides technology and supply-chain services to customers and suppliers throughout the product lifecycle. Chief Executive Phil Gallagher said the board’s decision reflected the company’s focus on dependable shareholder returns, supported by financial strength and disciplined capital allocation. He also emphasized balancing shareholder distributions with investment in long-term growth, according to Avnet’s dividend announcement.

The increase followed a stronger fiscal 2026 operating performance. Avnet reported fiscal-year sales of $27.6 billion, up 25% from the prior year, while diluted earnings per share rose to $4.01 from $2.75. Management attributed the improvement to broad momentum across regions, end markets and customer segments. The company also reported lower inventory days and margin expansion in its fiscal 2026 results.

Cash generation was less favorable during the year. Avnet reported using $280.9 million in operating cash, compared with generating $724.5 million in the prior year, primarily because additional working capital was needed to support sales growth. In its annual filing, management said it expected future working-capital liquidation and available borrowing capacity to be sufficient for anticipated liquidity needs. The filing also identified dividends, capital spending, repurchases and potential acquisitions among possible uses of cash in fiscal 2027, according to Avnet’s Form 10-K.

What it means for income investors

The increase lifts Avnet’s annualized income stream while preserving its 13-year growth record. The 1.6% forward yield places more emphasis on dividend growth and payment durability than on a high current yield. Because the shares traded ex-dividend on Sept. 9, investors purchasing on or after that date are not entitled to this distribution.