Petroleo Brasileiro Sa-Petrobras ADS (REP 1 Common Share) (PBR) DIvidends Date & History

Key Takeaways

• PBR offers a trailing dividend yield of 15.70%, significantly higher than peers like XOM (2.85%) and CVX (3.92%).
• Forward dividend yield stands at 7.21% with an annual rate of $1.47 per share, paid quarterly.
• Payout ratio of 55.71% indicates earnings coverage for the dividend, supported by strong free cash flow of $85 billion (TTM).
• Recent history shows variable payouts tied to oil prices, with cuts from peak yields over 40% in 2023.
• Upcoming ex-dividend date is April 24, 2026, with payment on May 28, 2026.
• High yield appeals to income investors, but political risks in Brazil warrant caution.

Dividend Overview

Petróleo Brasileiro S.A. - Petrobras (PBR), Brazil's state-controlled oil giant, maintains a shareholder remuneration policy that distributes a portion of free cash flow as dividends and interest on equity (IE), paid quarterly to ADR holders. The trailing annual dividend rate is $3.20 per share, yielding 15.70% based on recent payments influenced by elevated prior-year payouts. Looking forward, analysts project $1.47 annually, for a 7.21% yield—still attractive in the energy sector. This positions PBR as a high-yield stock rather than a dividend growth aristocrat, with payments fluctuating alongside commodity prices and cash generation from pre-salt oil fields. The policy emphasizes extraordinary dividends when financial metrics exceed targets, blending income appeal with reinvestment for growth.

Dividend History and Growth

PBR resumed consistent quarterly dividends post-2018 after a hiatus from 2014-2017 amid financial challenges. Payouts surged with high oil prices, peaking at yields over 40% in 2023 via special distributions totaling billions. For instance, 2024 ADRs received multiple payments like $0.345 and $0.223 in May, reflecting strong cash flows. However, 2025 saw moderated amounts, such as $0.131 in May and upcoming 2026 installments around $0.124 each in May and June. This variability—no long-term growth streak—stems from a policy linking ~45% of free cash flow to shareholders, prioritizing balance sheet strength and capex over steady increases. Cuts occurred as oil softened, contrasting with peers' reliability.

Dividend Sustainability and Payout Ratio

At 55.71%, PBR's payout ratio suggests the dividend consumes just over half of earnings (TTM EPS $3.04), leaving room for reinvestment or buffers. Free cash flow (TTM $85 billion) and operating cash flow ($200 billion) amply cover distributions, with recent FCF yields exceeding 30% in strong years. Debt-to-equity at 91.96% reflects a manageable load post-deleveraging, bolstered by $50.6 billion in cash. Profitability remains robust (22% margins, 28% ROE), though vulnerability to oil volatility and Brazilian politics poses risks. Overall, the forward dividend appears sustainable barring prolonged price crashes, as pre-salt production growth supports cash generation.

Dividend Compared to Industry Peers

In the integrated oil sector, PBR's forward 7.21% yield dwarfs peers: XOM at 2.85% (payout 68%), CVX 3.92% (120%), SHEL 3.72% (45%), BP 4.61% (160%), and TTE 4.77% (59%). PBR's trailing 15.70% reflects extraordinary payouts unavailable to most supermajors, whose policies favor steady growth (e.g., XOM's 43-year streak). While peers offer stability, PBR provides superior income potential, albeit with higher volatility tied to Brazil's fiscal dynamics.

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Is This Stock Attractive for Dividend Investors?

PBR suits aggressive income investors tolerant of volatility, drawn to its double-digit trailing yield and robust cash coverage amid oil's cyclicality. Those prioritizing total returns from energy exposure may appreciate pre-salt driven FCF funding payouts, outpacing sector averages. However, conservative dividend investors—favoring aristocrats like XOM with decades of raises—might shy from PBR's history of pauses and cuts, plus state influence risks. Growth-oriented holders could benefit if oil rebounds, boosting extraordinary dividends, but balance sheet deleveraging tempers upside. Overall, it fits high-conviction portfolios seeking yield premiums over stability, not broad buy-and-hold strategies. Analytical metrics highlight appeal for tactical income plays in commodities.

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