CF Industries Holding (CF) DIvidends Date & History

Key Takeaways

• CF Industries Holdings (CF) pays a quarterly dividend of $0.50 per share, equating to an annual payout of $2.00.
• Forward dividend yield stands at 1.63%, below the five-year average of 2.04%.
• Payout ratio of 22.3% indicates strong sustainability, well-covered by earnings and free cash flow exceeding $1.75 billion annually.
• Dividend has grown at a five-year CAGR of 10.76%, with total annual payout rising from $1.20 in 2020 to $2.00.
• Upcoming ex-dividend date is May 15, 2026, with payment on May 29, 2026.
• Yield lags peers like MOS (3.8%) but offers superior coverage.

Dividend Overview

CF Industries Holdings (CF), a leading nitrogen fertilizer producer, maintains a consistent quarterly dividend policy. The company currently pays $0.50 per share each quarter, totaling $2.00 annually. This delivers a forward dividend yield of 1.63% and a trailing yield of 1.61%, positioning CF as a modest dividend stock rather than a high-yield play. Payments occur reliably every three months, with the next ex-dividend date set for May 15, 2026, and payment on May 29, 2026. While not a dividend growth aristocrat, CF's payouts reflect a strategy balancing shareholder returns with reinvestment in its capital-intensive operations amid volatile fertilizer markets.

Dividend History and Growth

Since resuming dividends post-2015, CF Industries has demonstrated steady growth and consistency. The annual dividend has increased from $1.20 in 2020 to $2.00 today, reflecting a five-year compound annual growth rate (CAGR) of 10.76%. Quarterly payments have held at $0.50 per share since 2024, following prior hikes from around $0.30. No cuts have occurred in over a decade, underscoring commitment despite nitrogen price cycles. Recent declarations, such as the January 2026 announcement for a February payment, affirm ongoing reliability. This profile suits investors valuing stability over aggressive expansion.

Dividend Sustainability and Payout Ratio

CF's dividend appears highly sustainable, supported by a low payout ratio of 22.3%—meaning only a fraction of earnings is distributed, leaving ample room for growth or downturns. Free cash flow (FCF) reached $1.756 billion in 2024, easily covering the $390 million annual dividend (based on shares outstanding). Robust earnings coverage, manageable debt, and strong balance sheet further bolster confidence. In a cyclical industry, this conservative approach mitigates risks from commodity volatility.

Dividend Compared to Industry Peers

In the fertilizer sector, CF's 1.63% yield trails peers like MOS (3.8% forward) and NTR (around 3.4%), which offer higher income but potentially higher payout ratios. CF prioritizes nitrogen production efficiency, resulting in lower yields but superior FCF generation and sustainability compared to phosphate-focused rivals. This makes it relatively attractive for quality-focused income strategies within the industry.

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Is This Stock Attractive for Dividend Investors?

CF Industries Holdings (CF) appeals to conservative dividend investors seeking reliability over high yields. Its low 22.3% payout ratio and billion-dollar FCF provide a safety margin in the cyclical fertilizer market, where nitrogen prices fluctuate with global agriculture and energy costs. Income-oriented portfolios may value the steady quarterly $0.50 payouts, backed by decades of operational expertise. Dividend growth enthusiasts could appreciate the 10.76% five-year CAGR, though recent stability tempers expectations for rapid hikes. Long-term holders might find balance in CF's shareholder returns, including buybacks alongside dividends. However, volatility-sensitive investors should note sector risks, making it less ideal for pure yield chasers favoring peers like MOS.

Disclaimer

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