Does On Holding AG (ONON) Pay a Dividend? (2026)
Last updated July 2026
Short answer
No. On Holding AG (ONON) pays no dividend, so the yield is 0% and the position generates no income while you hold it. Its earnings position, ~$312M, a margin of roughly 8%, is the reason that matters most: companies typically start paying only once earnings and free cash flow are durable enough to support a standing commitment. All of ONON's return has to come from the share price. Verify the current policy on ONON's investor relations page.
Does On Holding AG (ONON) pay a dividend?
No. There is no dividend on ONON in our data and the yield is 0%. These figures reflect the first quarter of 2026, reported on May 12, 2026, with second-quarter results scheduled for August 11, 2026, so the most recent operating data is a quarter old. On reports in Swiss francs while the shares trade in dollars, which means every USD revenue figure moves with the exchange rate and constant-currency growth ran roughly twelve percentage points above reported growth in the last quarter. On other measures the stock trades near 3.3 times sales and about 17.7 times EV/EBITDA, with roughly $1.27 billion of cash against about $676 million of debt that is largely lease liabilities, and no dividend.
This is worth stating plainly rather than hedging: if you are holding ONON for income, it does not provide any. The only way a position in it puts cash in your pocket is if you sell shares.
Why ONON pays no dividend
On Holding AG's earnings position (~$312M, a margin of roughly 8%) is the constraint. A dividend is a standing commitment that a board is very reluctant to cut once started, because a cut is read as a signal about the business. Companies therefore wait until profits and free cash flow are durable before starting one, and many never do, preferring buybacks, which can be paused without the same signalling cost.
Retaining cash is not a weakness in itself. A company that can reinvest a dollar at a high return creates more value by keeping it than by paying it out. The question is whether On Holding AG is actually earning that return on what it reinvests, which is a business question, not a dividend question.
What would have to change for ONON to start paying
Consistent profitability first, then free cash flow that comfortably exceeds what the business needs to keep growing, and then a management view that it has run out of better uses for the money. Those show up in the quarterly numbers well before any announcement, so the results are the place to watch rather than the press releases. We are not predicting whether or when that happens.
Where investors get income instead
The common approach is to hold ONON for the growth exposure and get income from somewhere else in the portfolio, rather than asking one position to do both jobs. That means dividend-paying stocks, dividend ETFs, or short-term bond and Treasury funds, sized so the income side covers what you need.
- Best dividend stocks for individual payers with long records.
- Best dividend ETFs to get a spread of payers in one holding.
- Best ETFs for monthly income if the timing of the cash matters to you.
Walnut is informational and is not an investment adviser. None of these are recommendations.
Tax: what a zero-dividend stock changes
With no dividend there is no income to report while you hold ONON, so nothing is taxable until you sell. At sale you owe capital-gains tax on the gain, at long-term rates if you held for more than a year. Compared with a dividend payer in a taxable account, which generates a tax bill every year whether you spend the cash or reinvest it, that deferral is a small structural advantage. See how stocks are taxed. This is not tax advice.
The bottom line on the ONON dividend
There is not one. On Holding AG (ONON) is a total-return holding: it either works through the share price or it does not work. If you own it, own it for that reason, and build the income part of your portfolio elsewhere. For the full picture see the ONON guide. Walnut can show how ONON fits your real portfolio. It is not an investment adviser.
Investing in On Holding AG with AI
Connect the broker you already use and ask Walnut's AI how ONON fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
Does On Holding AG (ONON) pay a dividend?
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No. On Holding AG has no dividend on record, so the yield is 0% and holding ONON produces no income. On Holding AG directs its cash back into the business, through research, capacity, acquisitions, or buybacks, rather than paying it out. Every dollar of return from ONON has to come from the share price. Verify the current policy on ONON's investor relations page, since a board can start a dividend at any time.
Why doesn't ONON pay a dividend?
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On Holding AG directs its cash back into the business, through research, capacity, acquisitions, or buybacks, rather than paying it out. Paying nothing is a deliberate choice, not a failure. A growth company that can reinvest at high returns creates more value per dollar retained than it would by handing that dollar to shareholders.
Will ONON ever pay a dividend?
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Nobody can say, and we will not guess. What usually has to happen first is a stretch of durable profitability and positive free cash flow, with enough left over after reinvestment that the company runs out of better uses for the money. Watch for those in the quarterly results rather than for an announcement. Companies also often start with buybacks before a dividend, because a buyback carries no ongoing commitment.
What is ONON's dividend yield?
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0%. There is no dividend, so there is no yield. This matters for planning: if you are building an income portfolio, ONON contributes nothing to the income side and its entire contribution is price return. It also means the position generates no taxable income while you hold it.
How do I get income if I own ONON?
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The usual approach is to pair a non-payer like ONON with holdings that do pay: dividend stocks, dividend ETFs, or bond funds, sized so the income side of the portfolio meets your needs while the growth side stays intact. Some investors sell covered calls on positions they hold, though that caps the upside that is the whole reason to own a growth name. See our guides to the best dividend stocks and best dividend ETFs. Walnut is not an investment adviser.
Do I owe tax on ONON if it pays no dividend?
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Not while you hold it. With no dividend there is no income to report, so nothing is taxable until you sell. At that point you owe capital-gains tax on the gain, at long-term rates if you held for more than a year and at ordinary-income rates if you did not. That deferral is a genuine, if minor, advantage of non-payers in a taxable account. This is not tax advice.
Is ONON a bad stock for income investors?
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It is the wrong tool for that job, which is not the same as a bad company. If you need cash from your portfolio, a stock paying nothing forces you to sell shares to generate it, which means selling into whatever price the market happens to offer. Investors who want ONON's growth exposure and also want income typically hold both, rather than expecting one holding to do both jobs.
Does ONON pay a dividend, and what does it do with its cash?
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No. On has never paid a dividend and reinvests cash into retail store openings, marketing and athlete partnerships, product development including the LightSpray automation program, and working capital to support inventory growth. The balance sheet holds roughly $1.27 billion of cash against about $676 million of debt, most of which is lease liabilities from the retail footprint rather than borrowings, leaving enterprise value slightly below market cap. Total return from ONON therefore comes entirely from share price movement, and Swiss withholding tax on dividends is not currently a consideration for US holders because there are no dividends to withhold from.
Walnut is informational, not investment advice. Dividend figures on this page come from a mid-2026 data pull and are approximate; verify the current yield, amount, schedule, and policy with ONON's investor relations page or your broker before acting on them.