Aercap Holdings (AER) DIvidends Date & History

Key Takeaways

• AerCap Holdings N.V. (AER) offers a forward dividend yield of 1.16%, paid quarterly at $0.40 per share.
• Trailing twelve-month (TTM) yield stands at 0.87%, reflecting a recent hike from $0.27 quarterly in 2025.
• Payout ratio of just 5.07% signals exceptional dividend safety, backed by TTM EPS of $21.31.
• Strong earnings coverage from net income of $3.75 billion supports ongoing payments amid aviation recovery.
• Modest yield aligns with aircraft leasing peers, prioritizing fleet growth over high payouts.
• Recent ex-dividend date was February 25, 2026, with payment on March 19, 2026.

Dividend Overview

AerCap Holdings N.V. (AER), the world's largest owner and manager of commercial aircraft, maintains a modest dividend profile suited to its capital-intensive leasing business. The company pays dividends quarterly, with a forward annual dividend of $1.60 per share, yielding 1.16% at current prices. This follows a trailing annual payout of $1.21 per share (0.87% yield). Dividends were reinstated in 2025 at $0.27 per quarter after a pandemic-related suspension, signaling a commitment to returning capital as aviation demand rebounds. AerCap is not classified as a high-yield or dividend growth stock but offers reliable income with room for expansion, given its low payout commitment targeting around $200 million annually.

Dividend History and Growth

AerCap's dividend history reflects the cyclical nature of aviation leasing. Payments were halted during the COVID-19 downturn but resumed in early 2025 with quarterly distributions of $0.27 per share, paid on March 4, June 5, September 4, and December 4. The company recently increased the quarterly dividend to $0.40, representing about a 48% hike and boosting the forward annual payout to $1.60. This adjustment underscores a strategy to reward shareholders amid robust lease demand and fleet transactions. While lacking a long-term growth streak, the progression from suspension to consistent raises demonstrates improving financial stability and a focus on sustainable capital returns without compromising aircraft investments.

Dividend Sustainability and Payout Ratio

AerCap's dividend appears highly sustainable, with a trailing payout ratio of 5.07%—far below typical thresholds for concern. This low ratio means dividends consume minimal earnings, supported by TTM EPS of $21.31 and net income of $3.75 billion. Operating cash flow reached $5.39 billion TTM, though free cash flow was negative at -$681 million due to substantial capital expenditures on aircraft acquisitions, a hallmark of the leasing model. Adjusted leverage stands at 2.1x (below the 2.7x target), and strong profitability provides ample coverage. Debt levels are manageable relative to assets, positioning AerCap to maintain or grow payouts even in volatile fuel or travel environments.

Dividend Compared to Industry Peers

In the aircraft leasing sector, AerCap's 1.16% forward yield is competitive but modest. Peer Air Lease Corporation (AL) offers a slightly higher yield of approximately 1.35%, with quarterly payments of $0.22 per share. Both firms prioritize fleet expansion and share buybacks over aggressive dividends, reflecting capital needs in a high-asset industry. Broader rental and leasing services peers often yield 1-2%, making AerCap's profile average—attractive for stability rather than top-tier income. Its superior scale and lower payout ratio provide an edge in consistency.

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Is This Stock Attractive for Dividend Investors?

AerCap Holdings N.V. (AER) may appeal to conservative dividend investors prioritizing safety over high yields, given its ultra-low 5% payout ratio and robust earnings coverage. Income seekers in cyclical sectors like aviation leasing could value the 1.16% yield amid global travel recovery and AerCap's market-leading fleet of over 2,000 aircraft. Those favoring total return might appreciate the blend of dividends, buybacks (recently $745 million), and potential growth from lease renewals and sales. However, the business model's sensitivity to fuel prices, geopolitical risks, and capex demands suits patient, long-term holders rather than yield chasers. High debt typical of lessors warrants monitoring leverage, but current metrics suggest resilience for balanced portfolios focused on sustainable income.

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