Research memoAir Products and Chemicals, Inc. (APD) · NYSEMemo of October 17, 2026

Air Products dividend

Air Products' current annualized dividend is $7.24 per share. Its free cash flow has moved from positive to negative while dividends continued, so the dividend was not funded by current operations after investment spending alone.

7.11
Dividend paid per share, Sep 2025
2.4%
Dividend yield
-5.8%
Real free cash flow yield
-5.6%
Free cash flow yield
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Every number traced to Air Products's filings8 chapters · 16,365 words161 sources cited

How much does Air Products pay per share?

Air Products kept raising its dividend while investment spending exceeded free cash flow, so financing helped carry the company through its expansion.

Dividends begin at the current annualized rate of $7.24. The base case reaches $7.28, then $7.48 and $7.68, extending the long record of increases at a restrained pace. The bear case holds $7.24 before cutting to $6.52, because negative free cash flow and debt could override that record. The bull case reaches $7.32, then $7.64 and $7.96, assuming stronger cash generation.

Dividend per share against free cash flow per share (US$ per share, except percentages)5.653.71Sep 20216.220.88Sep 20226.72-6.65Sep 20237.02-14.42Sep 20247.11-17.25Sep 2025Dividends paid, per shareReal free cash flow per share
What one share getsUS$ per share, except percentages
Sep 2025Sep 2024Sep 2023Sep 2022Sep 2021
Real free cash flow per share-17.25-14.42-6.650.883.71
− Dividends paid, per share7.117.026.726.225.65
− Share buybacks, per share0.000.000.000.000.00

What this means. Real free cash flow is lower because it also subtracts the value of shares given to employees as pay.

Is Air Products' dividend covered by its cash?

Free cash flow moved from positive to negative over the years shown, while dividends continued and share repurchases did not add to the cash burden. The company used operating cash, asset-sale proceeds, new borrowing and cash on hand together. Negative free cash flow does not prevent a dividend; it means the dividend is not being funded by current operations after investment spending alone.

Follow the money: where the free cash flow wentUS$ millions
Sep 2025Sep 2024Sep 2023Sep 2022Sep 2021
Free cash flow-3,765.8-3,150.0-1,420.7244.1871.0
− Dividends paid1,584.11,564.91,496.61,383.31,256.7
− Share buybacks00000
= Paid out more than the free cash flow5,357.14,740.73,033.21,144.0391.0
Paid out, % of free cash flownot meaningfulnot meaningfulnot meaningful566.7%144.3%

What this means. The company paid dividends even when its business was not generating enough free cash, so it had to use savings or borrow money.

What could change Air Products' dividend?

Management said Air Products was free-cash-flow positive year to date in fiscal 2026 and had paid $1.2 billion in dividends by its latest results call. That is an encouraging sign, but the fiscal year was incomplete, NEOM still required commissioning, and exit payments and other commitments remained. Air Products’ plan worked best where long contracts supported dedicated assets; its clean-hydrogen expansion worked only unevenly, and the final test is whether future cash can fund investment and dividends without steadily increasing debt.

The forecast's tablebase case, then bear / bull in brackets; USD millions, per share in USD, unless shown
October 2027October 2028October 2029
EBITDA5,600 (5,100 / 5,800)5,850 (5,200 / 6,300)6,120 (5,350 / 6,800)
Dividends per share7.28 (7.24 / 7.32)7.48 (6.52 / 7.64)7.68 (6.52 / 7.96)
Net debt16,400 (18,400 / 15,700)15,600 (19,700 / 14,500)14,600 (20,800 / 13,000)

What is Air Products' dividend yield today?

The October 2029 range is $218.02 to $551.57. Today's price is $299.59. The bear case has a 28% probability, the base case 55%, and the bull case 17%, reflecting stronger evidence for gradual recovery than for either failure or exceptional execution.

From the full memo · 1. The business

Air Products is a supplier of the invisible materials that keep factories, refineries, food plants and laboratories running. Its business is a long chain: build the plant, make or purify the gas, deliver it reliably, collect the customer’s dollar, and spend much of that dollar making the next delivery possible.

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