Baker Hughes (BKR) DIvidends Date & History

Key Takeaways

• Baker Hughes offers a current dividend yield of approximately 1.5%, paid quarterly at $0.23 per share for an annual total of $0.92.
• The payout ratio stands at around 35%, indicating strong coverage by earnings and ample room for growth.
• Dividend payments have increased for five consecutive years, reflecting consistent growth.
• Free cash flow (FCF, a measure of cash generated after capital expenditures) of $2.5 billion in 2025 supports dividend sustainability.
• Compared to peers, BKR's yield is modest versus SLB (2.3%) and HAL (1.8%).

Dividend Overview

Baker Hughes maintains a quarterly dividend policy, distributing $0.23 per share, which equates to an annual dividend of $0.92 and a yield of about 1.5% as of April 2026. The most recent ex-dividend date was February 17, 2026, with payment on February 27, 2026. The company funds these payouts from operating cash flows, underscoring a prudent approach. While not classified as a high-yield stock, BKR fits the profile of a modest dividend payer with potential for growth, particularly as it transitions toward energy technology solutions. This steady schedule appeals to investors seeking reliability over aggressive income.

Dividend History and Growth

Baker Hughes has paid dividends quarterly since reinstating them post its 2017 spin-off from GE. The quarterly rate has held steady at $0.23 since at least 2025, following gradual increases. Over the past five years, dividends have grown at an average annual rate of about 5%, achieving a five-year consecutive increase streak. Prior history traces back further under legacy structures, but recent consistency highlights a commitment to returning capital amid oilfield services volatility. No cuts have occurred in this period, and management affirms ongoing payments from operations.

Dividend Sustainability and Payout Ratio

With a payout ratio of 35%, Baker Hughes' dividend is well-covered by earnings, leaving significant flexibility for reinvestment or increases. Earnings growth has outpaced distributions, with projected ratios remaining below 40%. Strong FCF generation—$2.5 billion in fiscal 2025—provides additional buffer, exceeding annual dividend obligations by a wide margin. Moderate debt levels and robust cash from operations further bolster stability, even in cyclical energy markets. Analysts view the payout as sustainable long-term.

Dividend Compared to Industry Peers

In the oil and gas equipment & services sector, BKR's 1.5% yield trails slightly behind peers. SLB offers around 2.3%, while HAL yields about 1.8%. These comparables also pay quarterly, but higher yields reflect varying payout strategies amid similar market exposures. Baker Hughes' lower ratio prioritizes growth and buybacks, positioning it as a balanced option versus higher-yielding but potentially riskier rivals.

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Is This Stock Attractive for Dividend Investors?

Baker Hughes may appeal to conservative dividend investors prioritizing sustainability over high yields, given its low payout ratio and FCF coverage. Those focused on dividend growth could find the five-year streak and 5% CAGR encouraging, especially as the company diversifies into cleaner energy technologies. Long-term holders in the energy sector might value the steady quarterly payments amid commodity cycles. However, income seekers chasing top yields may look elsewhere, as BKR's 1.5% lags some peers. Overall, it suits balanced portfolios blending income with capital appreciation potential, though energy market risks warrant caution. Suitability depends on individual risk tolerance and sector outlook.

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