MillerKnoll (NASDAQ:MLKN) Is Paying Out A Dividend Of $0.1875

The board of MillerKnoll, Inc. (NASDAQ:MLKN) has announced that it will pay a dividend on the 15th of January, with investors receiving $0.1875 per share. This makes the dividend yield 4.4%, which will augment investor returns quite nicely.

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MillerKnoll's Projections Indicate Future Payments May Be Unsustainable

Estimates Indicate MillerKnoll's Could Struggle to Maintain Dividend Payments In The Future

MillerKnoll's Future Dividends May Potentially Be At Risk

We like to see robust dividend yields, but that doesn't matter if the payment isn't sustainable. Even though MillerKnoll isn't generating a profit, it is generating healthy free cash flows that easily cover the dividend. This gives us some comfort about the level of the dividend payments.

Earnings per share is forecast to rise by 103.3% over the next year. However, if the dividend continues along recent trends, it could start putting pressure on the balance sheet with the payout ratio getting very high over the next year.NasdaqGS:MLKN Historic Dividend October 28th 2025

View our latest analysis for MillerKnoll

Dividend Volatility

The company's dividend history has been marked by instability, with at least one cut in the last 10 years. The annual payment during the last 10 years was $0.56 in 2015, and the most recent fiscal year payment was $0.75. This means that it has been growing its distributions at 3.0% per annum over that time. It's encouraging to see some dividend growth, but the dividend has been cut at least once, and the size of the cut would eliminate most of the growth anyway, which makes this less attractive as an income investment.

Dividend Growth May Be Hard To Achieve

With a relatively unstable dividend, it's even more important to see if earnings per share is growing. Unfortunately, MillerKnoll's earnings per share has been essentially flat over the past five years, which means the dividend may not be increased each year.

The Dividend Could Prove To Be Unreliable

Overall, it's nice to see a consistent dividend payment, but we think that longer term, the current level of payment might be unsustainable. The payments haven't been particularly stable and we don't see huge growth potential, but with the dividend well covered by cash flows it could prove to be reliable over the short term. We don't think MillerKnoll is a great stock to add to your portfolio if income is your focus.

Story Continues

Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. For example, we've identified 2 warning signs for MillerKnoll (1 shouldn't be ignored!) that you should be aware of before investing. Is MillerKnoll not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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