Prediction: Netflix Will Begin Paying a Dividend in 2027 and Beat the S&P 500 During the Next Decade

Netflix stock has declined despite record earnings and strong free cash flow generation. The company's transition from high-growth to high-margin cash-generating business, combined with aggressive buybacks ($4.8B in Q3 2026), suggests a dividend could be implemented by 2027. At a valuation of 16.4x 2026 earnings versus S&P 500's 18.7x, Netflix appears undervalued and positioned to outperform the broader market over the next decade.