Advance Auto Parts, Inc.
AAPConsumer Cyclical · Stock · quarterly payer
Forward Yield
1.79%
Annual Dividend
$1.00
Payout Ratio
89%
5-Yr Growth
0.0%
Ex-Date
Jul 10, 2026
Frequency
Quarterly
Summary
As of July 2026, Advance Auto Parts, Inc. (AAP) yields 1.79% ($1.00 per share annually), with a blended fair-value estimate of $85.33 — +53% upside, so it screens as undervalued. Dividend safety grade: C (53/100).
Is AAP a good dividend stock?
MixedAdvance Auto Parts, Inc. (AAP) pays a quarterly dividend yielding 1.79% ($1.00/yr), with 0 years of growth and a dividend-safety grade of C. The picture is mixed — the dividend pays, but safety or growth signals are weaker than ideal.
Advantages
Risks
- Cut its dividend in 2023
- Elevated payout ratio (89%)
- Share price is down over the past 5 years
Key Data
- Dividend Yield
- 1.79%
- Payout Ratio
- 89%
- Annual Dividend
- $1.00
- 5-Yr Avg Growth
- 0.0%
- Ex-Dividend Date
- Jul 10, 2026
- Years of Growth
- 0
- Frequency
- quarterly
- Beta
- 1.05
- Market Cap
- $3.4B
- P/E Ratio
- 49.8
- 5-Yr Total Return
- -72%
- 52-Week Range
- $37.89 – $65.21
- Dividend Safety
- C · 53/100
- Ever Cut?
- Yes (2023)
Frequently Asked Questions
AAP Price — Last 12 Months
Daily close
Price Return
1 Year
-9%
3 Years
-19%
5 Years
-72%
52-Week Range
$37.89 – $65.21
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is AAP worth?
Undervaluedlow confidenceOur blended fair-value estimate for Advance Auto Parts, Inc. is $85.33 per share, versus a market price of $55.80. That implies 53% of upside — a margin of safety of about 35%.
Fair Value
$85.33
Current Price
$55.80
Upside
+53%
Margin of Safety
35%
How we get there
Discounted cash flow
Discounts projected free cash flow back to today.
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 3.2% annual free-cash-flow growth. We model 20.0% — below our estimate, leaving room for upside if the business executes.
Assumptions: 9.6% discount rate (CAPM), 20.0% stage-1 growth, 2.5% terminal growth, $1.12 EPS, $1.00 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
AAP Dividend Safety Score
Borderline
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 |
|---|---|---|---|
| Jul 10, 2026 | — | $0.2500 | regular |
| Apr 10, 2026 | — | $0.2500 | regular |
| Jan 9, 2026 | — | $0.2500 | regular |
| Oct 10, 2025 | — | $0.2500 | regular |
| Jul 11, 2025 | — | $0.2500 | regular |
| Apr 11, 2025 | — | $0.2500 | regular |
| Jan 10, 2025 | — | $0.2500 | regular |
| Oct 11, 2024 | — | $0.2500 | regular |
| Jul 12, 2024 | — | $0.2500 | regular |
| Apr 11, 2024 | — | $0.2500 | regular |
| Jan 11, 2024 | — | $0.2500 | regular |
| Oct 12, 2023 | — | $0.2500 | regular |
| Jul 13, 2023 | — | $0.2500 | regular |
| Apr 13, 2023 | — | $1.5000 | regular |
Income Calculator
At $1.00 / yr per share
