Ecopetrol SA (EC) DIvidends Date & History

Key Takeaways

• Ecopetrol S.A. (EC) offers a forward dividend yield of approximately 5.1%, significantly above the oil and gas integrated industry average.
• Recent annual dividend of $0.65 per share, paid semi-annually, with the latest ex-dividend date April 29, 2026, and payment on May 7, 2026.
• Payout ratio around 50-82%, covered by earnings (EPS $1.36 TTM) and free cash flow of $3.2 billion over the last 12 months.
• Dividend history shows volatility with cuts during low oil prices (e.g., 2020) but strong recoveries in high-price periods like 2022.
• High debt-to-equity ratio near 100% poses risks, but operating cash flow covers debt payments.
• Attractive for yield-seeking investors tolerant of commodity cycles and emerging market exposure.

Dividend Overview

Ecopetrol S.A. (EC), Colombia's state-controlled integrated oil and gas giant, maintains a dividend policy targeting 40-60% of net income, recently applying a 50.1% payout for 2025 earnings. The forward annual dividend stands at $0.65 per share, delivering a yield of about 5.1% at recent prices around $12.64. Payments occur semi-annually or irregularly, often including ordinary and special dividends tied to oil prices and profitability. The most recent payout was $0.661 per share, ex-date April 29, 2026, paid May 7, 2026. This positions EC as a high-yield play rather than a consistent dividend growth stock, appealing to income investors in the energy sector amid volatile crude markets.

Dividend History and Growth

Ecopetrol's dividend track record reflects the cyclical nature of oil prices. Historical payouts peaked in 2022 at over $2.84 annually during high crude rallies, but plunged to $0.09 in 2020 amid COVID-19 lows. Recent years show variability: 2023 around $1.64, 2024 $1.01, with 2025-2026 payments totaling about $1.03 TTM. The company lacks a long dividend growth streak, having cut payments three times in the last three years alongside increases, prioritizing sustainability over steady hikes. Policy adjustments, like 2025's 50.1% payout (COP 110/share ordinary), balance shareholder returns with reserves for strategic investments.

Dividend Sustainability and Payout Ratio

Ecopetrol's dividend appears moderately sustainable, with a payout ratio varying 50-82% of earnings (TTM EPS $1.36 covers $0.65 comfortably). Free cash flow (FCF) of $3.2 billion TTM (operating cash $8.84B minus capex $5.68B) supports distributions, though past years fluctuated (2024 $27B positive, 2023 negative). Debt-to-equity near 100% (total debt $29B) elevates leverage risks, but interest coverage (4.2x) and operating cash covering debt (31%) provide buffers. Government ownership (88%) influences policy, favoring reserves for energy transition amid Colombia's fiscal needs.

Dividend Compared to Industry Peers

Ecopetrol's 5.1% yield outpaces integrated oil peers like Chevron (CVX) at 3.7-3.9%, ExxonMobil (XOM) at 2.6-2.7%, and ENI (E) at 3.3%. Fellow Latin American producer Petrobras (PBR) offers higher yields (often 10%+), but with greater volatility. Canadian peers like Suncor (SU) (2.8%) and Canadian Natural Resources (CNQ) (4.1%) trail EC's yield, though they boast stronger growth streaks. EC's edge suits high-yield seekers, but peers provide more stability.

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Is This Stock Attractive for Dividend Investors?

Ecopetrol S.A. (EC) appeals to income-focused investors seeking elevated yields in the energy sector, particularly those comfortable with commodity price swings and emerging market dynamics. Its 5%+ yield dwarfs majors like CVX or XOM, supported by a policy-driven 50% payout and robust FCF in strong oil environments. However, volatility—evident in past cuts during downturns—and high leverage (debt/equity ~100%) demand caution for conservative dividend growth seekers. Long-term holders may value its diversification into renewables and infrastructure, potentially stabilizing cash flows, but short-term traders should monitor oil above $70/barrel for sustainability. Balanced portfolios might allocate modestly to EC for yield enhancement without overexposure to single-name risks.

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