How does Nu Skin’s dividend size and frequency compare to its direct competitors in the beauty and wellness sector?

Nu Skin’s dividend – what it looks like today

1. Who are Nu Skin’s “direct competitors” in the beauty‑and‑wellness space?

The most comparable peers in terms of *direct‑selling/affiliate** distribution are Herbalife, Amway (private) and Avon/Natura. Companies that sell mainly through retail (Estée Lauder, L’Oréal, Shiseido) are also often used as benchmarks because they operate in the same “beauty & wellness” category even if their channel mix differs.*

2. Dividend size & frequency of the main public peers (as of the latest 2024‑2025 filings)

*Annualized cash per share = dividend amount × number of payments per year (4 for quarterly, 1 for annual).

3. How Nu Skin stacks up

a. Absolute cash amount

• Smaller than most peers.
  
  • Herbalife’s $0.075 quarterly payout is 25 % larger.
    
  • Avon/Natura’s $0.08 quarterly payout is 33 % larger.
    
  • L’Oréal and Shiseido pay far larger annual dividends, but those are spread over a single payment rather than four.

b. Frequency

• Quarterly – the same cadence as most U.S. dividend‑paying companies (Herbalife, PG, Amgen, etc.).
  
• European peers (L’Oréal, Shiseido) tend to pay annually; the quarterly cadence makes Nu Skin’s cash flow more predictable for income‑focused investors.

c. Yield (cash return on price)

• < 1 % – far below the 1.5‑2.7 % range seen in most comparable listed beauty‑wellness firms.
  
• The low yield reflects Nu Skin’s conservative payout ratio (≈ 12 % of earnings) versus Herbalife’s ~15‑20 % or Avon/Natura’s ~30 %.

d. Payout policy

• Conservative – Nu Skin has historically been retention‑oriented (the last cash dividend before this announcement was in 2018). The $0.06 dividend marks a re‑entry into cash‑return territory but still signals that management prefers to preserve cash for growth, product development, and its affiliate‑network expansion.
  
• Peers vary:
  
  • Herbalife uses dividend as a modest shareholder‑return tool while still investing heavily in global expansion.
    
  • L’Oréal follows a mature‑company model: larger, stable dividends funded by strong cash flow and a high payout ratio.
    
  • Estée Lauder has no cash dividend, opting for share‑based compensation and reinvestment.

e. Growth vs. income perspective

4. Bottom‑line take‑aways

In plain language:

- Size: Nu Skin’s $0.06 quarterly dividend is the smallest cash payout among the listed beauty‑wellness companies we compared. It is roughly a quarter‑to‑a‑third of what Herbalife and Avon/Natura pay each quarter.

- Frequency: The quarterly schedule matches U.S. peers (Herbalife, PG) but differs from most European beauty giants, which pay once a year.

- Yield & payout stance: At less than 1 % annual yield, Nu Skin’s dividend is considerably less attractive to income investors than the 1½‑3 % yields delivered by its peers. The low payout ratio underscores a growth‑first mindset rather than a focus on returning cash.

What this means for investors:

If you are attracted to Nu Skin for its affiliate‑driven growth story, the dividend should be viewed as a nice‑to‑have bonus rather than a primary source of return. For investors who prioritize steady cash income, other beauty‑wellness stocks—especially the more mature, retail‑oriented firms like L’Oréal, Shiseido, or even Herbalife—offer larger and higher‑yielding payouts. Nu Skin’s dividend is a signal that the board is open to returning capital, but it remains modest relative to the broader sector.