Encompass Health Corporation
EHCHealthcare · Stock · quarterly payer
Forward Yield
0.69%
Annual Dividend
$0.84
Payout Ratio
13%
5-Yr Growth
-4.7%
Ex-Date
Oct 1, 2026
Frequency
Quarterly
Summary
As of September 2026, Encompass Health Corporation (EHC) yields 0.69% ($0.84 per share annually), with a blended fair-value estimate of $98.45 — -19% downside, so it screens as overvalued. Dividend safety grade: C (63/100). 2 years of dividend growth.
Is EHC a good dividend stock?
Yes, with caveatsEncompass Health Corporation (EHC) pays a quarterly dividend yielding 0.69% ($0.84/yr), with 2 years of growth and a dividend-safety grade of C. It's a solid income payer, but check the caveats below before buying.
Advantages
- Comfortable payout ratio (13%)
- 141% total price return over 5 years
Risks
- Cut its dividend in 2023
- Dividend has been shrinking, not growing
Key Data
- Dividend Yield
- 0.69%
- Payout Ratio
- 13%
- Annual Dividend
- $0.84
- 5-Yr Avg Growth
- -4.7%
- Ex-Dividend Date
- Oct 1, 2026
- Years of Growth
- 2
- Frequency
- quarterly
- Beta
- 0.61
- Market Cap
- $12.1B
- P/E Ratio
- 20.3
- 5-Yr Total Return
- 141%
- 52-Week Range
- $92.77 – $127.99
- Dividend Safety
- C · 63/100
- Ever Cut?
- Yes (2023)
Frequently Asked Questions
EHC Price — Last 12 Months
Daily close
Price Return
1 Year
+7%
3 Years
+95%
5 Years
+141%
52-Week Range
$92.77 – $127.99
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is EHC worth?
Overvaluedmedium confidenceOur blended fair-value estimate for Encompass Health Corporation is $98.45 per share, versus a market price of $121.75. That implies 19% of downside.
Fair Value
$98.45
Current Price
$121.75
Downside
-19%
Margin of Safety
-24%
How we get there
Discounted cash flow
Discounts projected free cash flow 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 18.5% annual free-cash-flow growth. We model 8.9% — so the price already assumes faster growth than we think is likely.
Assumptions: 7.3% discount rate (CAPM), 8.9% stage-1 growth, 2.5% terminal growth, $5.99 EPS, $0.84 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
EHC 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
Full EHC dividend history →| Ex-Date | Pay Date | Amount | Type |
|---|---|---|---|
| Jul 1, 2026 | — | $0.1900 | regular |
| Apr 1, 2026 | — | $0.1900 | regular |
| Jan 2, 2026 | — | $0.1900 | regular |
| Oct 1, 2025 | — | $0.1900 | regular |
| Jul 1, 2025 | — | $0.1700 | regular |
| Apr 1, 2025 | — | $0.1700 | regular |
| Jan 2, 2025 | — | $0.1700 | regular |
| Oct 1, 2024 | — | $0.1700 | regular |
| Jul 1, 2024 | — | $0.1500 | regular |
| Mar 28, 2024 | — | $0.1500 | regular |
| Dec 29, 2023 | — | $0.1500 | regular |
| Sep 29, 2023 | — | $0.1500 | regular |
| Jun 30, 2023 | — | $0.1500 | regular |
| Mar 31, 2023 | — | $0.1500 | regular |
Income Calculator
At $0.84 / yr per share
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