Warner Music Group Corp.
WMGCommunication Services · Stock · quarterly payer
Forward Yield
2.86%
Annual Dividend
$0.76
Payout Ratio
89%
5-Yr Growth
9.0%
Ex-Date
May 26, 2026
Frequency
Quarterly
Summary
As of July 2026, Warner Music Group Corp. (WMG) yields 2.86% ($0.76 per share annually), with a blended fair-value estimate of $32.52 — +22% upside, so it screens as undervalued. Dividend safety grade: C (65/100). 5 years of dividend growth.
Is WMG a good dividend stock?
Yes, with caveatsWarner Music Group Corp. (WMG) pays a quarterly dividend yielding 2.86% ($0.76/yr), with 5 years of growth and a dividend-safety grade of C. It's a solid income payer, but check the caveats below before buying.
Advantages
- Never cut its dividend on record
- Strong 9.0% 5-yr dividend growth
Risks
- Elevated payout ratio (89%)
- Share price is down over the past 5 years
Key Data
- Dividend Yield
- 2.86%
- Payout Ratio
- 89%
- Annual Dividend
- $0.76
- 5-Yr Avg Growth
- 9.0%
- Ex-Dividend Date
- May 26, 2026
- Years of Growth
- 5
- Frequency
- quarterly
- Beta
- 1.29
- Market Cap
- $13.8B
- P/E Ratio
- 31.6
- 5-Yr Total Return
- -30%
- 52-Week Range
- $23.34 – $35.42
- Dividend Safety
- C · 65/100
- Ever Cut?
- No
Frequently Asked Questions
WMG Price — Last 12 Months
Daily close
Price Return
1 Year
-20%
3 Years
-20%
5 Years
-30%
52-Week Range
$23.34 – $35.42
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is WMG worth?
Undervaluedmedium confidenceOur blended fair-value estimate for Warner Music Group Corp. is $32.52 per share, versus a market price of $26.55. That implies 22% of upside — a margin of safety of about 18%.
Fair Value
$32.52
Current Price
$26.55
Upside
+22%
Margin of Safety
18%
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 7.0% annual free-cash-flow growth. We model 14.8% — below our estimate, leaving room for upside if the business executes.
Assumptions: 10.8% discount rate (CAPM), 14.8% stage-1 growth, 2.5% terminal growth, $0.84 EPS, $0.76 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
WMG 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 |
|---|---|---|---|
| May 26, 2026 | — | $0.1900 | regular |
| Feb 18, 2026 | — | $0.1900 | regular |
| Nov 19, 2025 | — | $0.1900 | regular |
| Aug 20, 2025 | — | $0.1900 | regular |
| May 27, 2025 | — | $0.1800 | regular |
| Feb 24, 2025 | — | $0.1800 | regular |
| Nov 19, 2024 | — | $0.1800 | regular |
| Aug 27, 2024 | — | $0.1800 | regular |
| May 22, 2024 | — | $0.1700 | regular |
| Feb 21, 2024 | — | $0.1700 | regular |
| Nov 20, 2023 | — | $0.1700 | regular |
| Aug 23, 2023 | — | $0.1700 | regular |
| May 22, 2023 | — | $0.1600 | regular |
| Feb 17, 2023 | — | $0.1600 | regular |
Income Calculator
At $0.76 / yr per share
