Organon & Company (OGN) Dividends

GoodMoat Analysis

Based on data as of March 26, 2026

Organon's dividend profile presents a high-yield but high-risk proposition for income investors. The 5.55% yield is attractive, but its sustainability is under significant pressure from a heavy debt load and declining revenue. The company's strong free cash flow generation is a key positive, but it is being prioritized for debt reduction over dividend growth.

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Organon offers a high dividend yield of 5.55%, which is significantly above the sector average, making it immediately attractive for income. However, a deeper analysis using the GoodMoat Quality Indicators reveals substantial risks. The dividend's sustainability is questionable due to the company's extremely leveraged balance sheet, with a Debt/Equity ratio of 11.5, far exceeding the framework's favourable threshold of low/zero debt (Debt/EBITDA < 1.0x). This massive debt burden is the primary use of cash, limiting financial flexibility. While the Free Cash Flow (FCF) Yield is exceptionally strong at 34.0%, indicating more than sufficient cash generation to cover the payout, the company is not in a position to grow the dividend. Capital allocation is necessarily focused on debt repayment. Furthermore, a -5.3% YoY revenue decline and a low profit margin of 3.0% indicate fundamental business pressure, which could threaten future cash flows. For a value investor, the high yield comes with the trade-off of high financial risk and no near-term prospect for dividend growth, as the company works to stabilize its balance sheet. Analysis based on data as of 2024-07-19.

Dividend Overview

Dividend Yield

3.01%

Dividend / Share

$0.34

Key Metrics

Market Cap

$2.93B

P/E Ratio

15.65

Forward P/E

—

EPS

$0.72

PEG Ratio

-0.05

Book Value

$2.89

Dividend Yield

3.01%

Profit Margin

3.01%

ROE

24.87%

Dividend History

Dividend Safety

OGN Dividend Analysis

Organon & Company (OGN) dividend analysis including yield, payout history, and sustainability metrics. The current dividend yield is 3.01%. The annual dividend per share is $0.34.

P/E ratio: 15.65. Profit margin: 3.01%. This page shows Organon & Company's dividend overview, key metrics, historical payout data, and dividend safety assessment to help income-focused investors evaluate the sustainability of dividend payments.

GoodMoat's dividend analyzer evaluates payout ratios, earnings coverage, and free cash flow coverage to determine how well supported Organon & Company's dividend payments are. Use this analysis alongside the company's financial statements and quality score to make informed income-investing decisions.