Raised again, covered many times over, and lightly levered. Oshkosh raised its quarterly dividend from $0.51 to $0.57 in January 2026, continuing annual raises in the declared series back through the 2017 fiscal year with no cut. FY2025 dividends of $130.4 million were 21.1% of $618.0 million of free cash flow. Net debt of $621.1 million is 0.5x FY2025 EBITDA of $1,139.9 million.
Key risk: Oshkosh sells cyclical defense, access-equipment, and vocational vehicles, so the coverage ratios of a good year can narrow quickly when any one end market turns down.
Changes if: Free-cash-flow payout crosses 60%, or the quarterly rate is held flat for a full year.
- ✓Cash-flow cover 21.1% of FY2025 free cash flow, pass (<60%).
- ✓Leverage Net debt/EBITDA 0.5x, pass (<3x).
- ✓Growth record Dividends declared per share rose every year in the series: $0.84 (FY2017) → $2.04 (FY2025), then $0.57/qtr in 2026; no cut in 10 years.
- ✓Trap screen Yield 1.65%, no cut, payout under 100%; not a trap pattern.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.