Cactus (WHD) DIvidends Date & History

Key Takeaways

• Cactus, Inc. (WHD) pays a quarterly dividend of $0.14 per share, totaling $0.56 annually, with a current dividend yield of approximately 1.04%.
• The company has raised its dividend for six consecutive years, with a five-year dividend per share compound annual growth rate (CAGR) of roughly 8.5%.
• Cactus operates with zero bank debt and held $342.8 million in cash as of December 31, 2024, providing exceptional dividend coverage.
• The payout ratio stands at approximately 16% to 26% of earnings, indicating ample room for future dividend increases.
• The dividend yield is below the oilfield services industry average, but the company's strong free cash flow and conservative balance sheet make the payout highly sustainable.

Dividend Overview

Cactus, Inc. (WHD), a Houston-based provider of wellhead and pressure control equipment serving the oil and gas industry, maintains a disciplined quarterly dividend policy. The company currently pays $0.14 per share each quarter, equating to an annualized dividend of $0.56 per share. At recent trading levels, this translates to a dividend yield of approximately 1.04%. While this yield is modest compared to the broader energy sector, Cactus has established a reliable track record of returning capital to shareholders. The company is best characterized as a dividend growth stock rather than a high-yield play. Its quarterly payout schedule follows a consistent cadence, with recent ex-dividend dates falling in March, June, September, and December. The most recent ex-dividend date was June 1, 2026, with payment made on June 18, 2026.

Dividend History and Growth

Cactus initiated its dividend program in 2019 with a quarterly payout of $0.09 per share and has increased the dividend every year since. The company now holds a six-year dividend growth streak. Annual dividend per share has risen from $0.36 in 2020 to $0.56 on a trailing twelve-month basis — a cumulative increase of over 55% in five years. The five-year dividend CAGR stands at approximately 8.5%, reflecting consistent annual raises. Notable increases include an 8.3% hike in mid-2024, when the quarterly dividend rose from $0.12 to $0.13, and a 7.7% increase in mid-2025, when it moved from $0.13 to $0.14. Cactus management has linked dividend decisions to confidence in free cash flow generation, as demonstrated by the Board's commentary alongside the 2024 increase, which explicitly cited strong cash flow performance and an improving outlook.

Dividend Sustainability and Payout Ratio

Cactus's dividend is well-insulated by a fortress-like balance sheet and robust free cash flow. The company ended fiscal year 2024 with $342.8 million in cash and cash equivalents and no bank debt outstanding. Operating cash flow for the full year 2024 reached $316.1 million, while total dividend payments and associated member distributions amounted to approximately $47 million — meaning the dividend consumed only about 15% of operating cash flow. The payout ratio based on earnings is similarly conservative, falling in the range of 16% to 26% depending on the earnings metric used. Capital expenditures for 2024 were $35.4 million, leaving substantial free cash flow (operating cash flow minus capital expenditures) after dividend obligations. This financial flexibility gives Cactus significant runway to sustain and grow the dividend even during cyclical downturns in U.S. land drilling activity. The absence of debt also insulates the dividend from interest rate pressures and refinancing risk.

Dividend Compared to Industry Peers

Within the oil and gas equipment and services industry, Cactus's dividend yield of approximately 1.04% sits at the lower end of the range. Larger peers offer notably higher yields: SLB (Schlumberger) yields approximately 2.4%, HAL (Halliburton) yields around 2.1%, BKR (Baker Hughes) yields roughly 1.4%, and NOV (NOV Inc.) yields approximately 2.9%. The industry average dividend yield is approximately 1.67%, placing Cactus meaningfully below the mean. However, Cactus distinguishes itself through a higher dividend growth rate, a spotless six-year streak of annual increases, and a far lower payout ratio than most peers, several of whom carry payout ratios above 35%. Cactus also stands out for its debt-free balance sheet, a rarity in the capital-intensive oilfield services sector. For investors prioritizing dividend safety and growth potential over current income, Cactus compares favorably to higher-yielding but more leveraged peers.

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Is This Stock Attractive for Dividend Investors?

Cactus, Inc. is likely to appeal most to dividend growth investors and long-term total return investors rather than those seeking high current income. The sub-1.1% yield is below what income-oriented investors typically require, and the company's exposure to cyclical U.S. land drilling activity means revenue and earnings can fluctuate with oil and gas capital spending trends. However, for investors with a multi-year horizon, Cactus offers a compelling combination of a growing dividend, a pristine balance sheet with zero debt, and a payout ratio that leaves abundant room for continued increases. The company's six-year dividend growth streak and mid-to-high single-digit CAGR suggest management is committed to steadily raising the dividend over time. Conservative investors may find comfort in the company's $342.8 million cash cushion, which could sustain the dividend through industry downturns without stress. Ultimately, Cactus is best suited for patient investors who value dividend reliability and growth trajectory over current yield and are comfortable with the inherent cyclicality of the energy services business.

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