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DEERFIELD, Ill. - Baxter International Inc. (NYSE:BAX) announced Tuesday that its Board of Directors has declared a quarterly cash dividend of $0.01 per share of common stock, payable on January 2, 2026, to stockholders of record as of November 28, 2025.
The quarterly dividend represents a significant reduction from previous levels, resulting in an indicated annual dividend rate of $0.04 per share. This change was previously announced during the company’s third-quarter 2025 earnings report. According to InvestingPro data, this marks a substantial 41.4% dividend reduction, ending the company’s 55-year streak of maintaining or increasing dividends.
Joel Grade, Baxter’s executive vice president and chief financial officer, stated that the dividend reduction is expected to free up more than $300 million in annual cash flow, which aligns with the company’s focus on accelerating deleveraging. The company currently carries $9.7 billion in total debt with a debt-to-equity ratio of 1.33, according to recent financial data.
Baxter International, a global medtech company, provides medical devices, connected solutions and advanced injectable technologies across various healthcare settings. The company employs approximately 38,000 people worldwide.
The dividend announcement was made in a press release issued by the company.
In other recent news, Baxter International Inc. reported its third-quarter 2025 earnings, which showed an earnings per share (EPS) of $0.69, exceeding the forecasted $0.60. Despite this positive EPS result, the company’s revenue of $2.84 billion fell short of the $2.88 billion consensus estimate. This underperformance in revenue has led to a downgrade by S&P Global Ratings, which lowered Baxter’s credit rating to ’BBB-’ from ’BBB’, citing continued revenue growth challenges and profitability issues. Furthermore, Baxter has adjusted its operational growth estimate for 2025 to 1%-2%, down from previous projections.
TD Cowen and Stifel have both lowered their price targets for Baxter International to $22, maintaining a Hold rating. TD Cowen’s adjustment follows the company’s third-quarter revenue shortfall, while Stifel cites ongoing business pressures and revised guidance for 2025. Stifel also adjusted its 2026 sales growth estimate to 1.9% year-over-year and lowered its EPS projection for 2026 to $2.20 from $2.63. These developments indicate a cautious outlook from analysts regarding Baxter’s future performance.
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