Mosaic Company (The) (MOS) DIvidends Date & History

Key Takeaways

• Mosaic Company (MOS) offers a current dividend yield of approximately 4%, paid quarterly at $0.22 per share ($0.88 annualized).
• Payout ratio stands at around 52%, indicating earnings coverage for the dividend.
• Recent dividend growth has been modest, with 7 consecutive years of increases but flat in the past year amid fertilizer market pressures.
• Sustainability is supported by earnings but challenged by negative free cash flow in recent periods.
• Higher yield than peers like CF Industries (1.7%) and NTR Nutrien (3.2%).
• Next ex-dividend date is May 21, 2026, with payment on June 2, 2026.

Dividend Overview

The Mosaic Company (MOS), a leading producer of phosphate and potash crop nutrients, maintains a quarterly dividend policy, currently paying $0.22 per share. This equates to an annualized dividend of $0.88 and a yield of about 4% based on recent stock prices. Mosaic is positioned as a high-yield stock in the basic materials sector rather than a dividend growth aristocrat, given its cyclical exposure to fertilizer prices. The company has consistently paid dividends for over 17 years, with the board declaring payments subject to financial performance and market conditions. This profile appeals to income investors seeking elevated yields from commodity producers, though volatility in crop nutrient demand influences payout stability.

Dividend History and Growth

Mosaic initiated its modern dividend era post-2011 spin-off, with payments growing significantly during high-fertilizer-price cycles. Annual dividends escalated from $0.15 per share in fiscal 2011 to peaks around $1.20 in 2022 amid booming demand. Recent history shows quarterly payouts rising from $0.21 to $0.22 in 2025, reflecting a modest increase. The company has achieved 7 consecutive years of dividend growth, with a 5-year compound annual growth rate (CAGR) of over 34%, though the past year's growth was flat at 0% due to softer phosphate margins. No cuts have occurred in the streak, but long-term strategy ties payouts to cash generation and commodity cycles rather than fixed escalation.

Dividend Sustainability and Payout Ratio

Mosaic's payout ratio of approximately 52%—calculated as dividends divided by earnings per share (EPS)—suggests the dividend is well-covered by profits, leaving room for reinvestment or growth. Trailing twelve-month (TTM) EPS supports this, with the ratio below 75%, a common sustainability threshold. However, free cash flow (FCF) coverage raises concerns, as recent periods show negative FCF due to working capital swings, maintenance capital expenditures, and inventory builds in a lower-price environment. Debt levels remain manageable at a net debt-to-EBITDA ratio under 2x, bolstering balance sheet strength. Management expects FCF improvement in 2026 with stabilizing input costs and higher volumes, indicating the dividend remains sustainable barring prolonged downturns.

Dividend Compared to Industry Peers

In the fertilizer industry, Mosaic's ~4% yield stands out as high relative to peers. CF Industries, a nitrogen leader, yields about 1.7% with a $2.00 annual dividend, prioritizing share buybacks. NTR Nutrien offers 3.2% ($2.20 annually), balancing potash, nitrogen, and retail. Smaller peer Intrepid Potash (IPI) pays no dividend, focusing on growth. Mosaic's elevated yield reflects its phosphate focus amid sector averages around 2%, making it attractive for yield but riskier in cyclical downturns.

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Is This Stock Attractive for Dividend Investors?

Mosaic Company (MOS) suits income-oriented dividend investors tolerant of commodity cycles, offering a top-tier 4% yield backed by a 52% payout ratio. Conservative investors may favor its earnings coverage and 17-year payment history, including 7 years of growth, but caution is warranted given negative recent FCF and vulnerability to phosphate price swings from global supply disruptions or farm economics. Growth-focused dividend seekers might look elsewhere amid flat recent increases and projected EPS declines. High-yield hunters in materials will appreciate the edge over CF (1.7%) or NTR (3.2%), yet the cyclical nature demands monitoring fertilizer demand from major growers like Brazil and India. Balanced portfolios could allocate modestly for yield enhancement, weighing sector recovery potential against input cost pressures.

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