The Gap, Inc.
GAPConsumer Cyclical · Stock · quarterly payer
Forward Yield
3.29%
Annual Dividend
$0.70
Payout Ratio
20%
5-Yr Growth
-7.9%
Ex-Date
Oct 7, 2026
Frequency
Quarterly
Summary
As of September 2026, The Gap, Inc. (GAP) yields 3.29% ($0.70 per share annually), with a blended fair-value estimate of $25.44 — +24% upside, so it screens as undervalued. Dividend safety grade: C (65/100). 1 years of dividend growth.
Is GAP a good dividend stock?
Yes, with caveatsThe Gap, Inc. (GAP) pays a quarterly dividend yielding 3.29% ($0.70/yr), with 1 year 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 (20%)
Risks
- Cut its dividend in 2021
- Dividend has been shrinking, not growing
- Share price is down over the past 5 years
Key Data
- Dividend Yield
- 3.29%
- Payout Ratio
- 20%
- Annual Dividend
- $0.70
- 5-Yr Avg Growth
- -7.9%
- Ex-Dividend Date
- Oct 7, 2026
- Years of Growth
- 1
- Frequency
- quarterly
- Beta
- 2.06
- Market Cap
- $7.5B
- P/E Ratio
- 6.4
- 5-Yr Total Return
- -9%
- 52-Week Range
- $18.11 – $29.36
- Dividend Safety
- C · 65/100
- Ever Cut?
- Yes (2021)
Frequently Asked Questions
GAP Price — Last 12 Months
Daily close
Price Return
1 Year
-10%
3 Years
+60%
5 Years
-9%
52-Week Range
$18.11 – $29.36
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is GAP worth?
Undervaluedlow confidenceOur blended fair-value estimate for The Gap, Inc. is $25.44 per share, versus a market price of $20.54. That implies 24% of upside — a margin of safety of about 19%.
Fair Value
$25.44
Current Price
$20.54
Upside
+24%
Margin of Safety
19%
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.
At today's price, the market is pricing in about 1.9% annual free-cash-flow growth. We model 11.8% — below our estimate, leaving room for upside if the business executes.
Assumptions: 12.0% discount rate (CAPM), 11.8% stage-1 growth, 2.5% terminal growth, $3.32 EPS, $0.70 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
GAP 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 GAP dividend history →| Ex-Date | Pay Date | Amount | Type |
|---|---|---|---|
| Jul 8, 2026 | — | $0.1750 | regular |
| Apr 8, 2026 | — | $0.1750 | regular |
| Jan 7, 2026 | — | $0.1650 | regular |
| Oct 8, 2025 | — | $0.1650 | regular |
| Jul 9, 2025 | — | $0.1650 | regular |
| Apr 9, 2025 | — | $0.1650 | regular |
| Jan 8, 2025 | — | $0.1500 | regular |
| Oct 9, 2024 | — | $0.1500 | regular |
| Jul 10, 2024 | — | $0.1500 | regular |
| Apr 9, 2024 | — | $0.1500 | regular |
| Jan 2, 2024 | — | $0.1500 | regular |
| Oct 3, 2023 | — | $0.1500 | regular |
| Jul 3, 2023 | — | $0.1500 | regular |
| Apr 4, 2023 | — | $0.1500 | regular |
Income Calculator
At $0.70 / yr per share
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