Booking Holdings dividend: cash, history and yield
Booking Holdings’ latest quarterly dividend was $0.42 per share, while Booking Holdings generated $9,087 million of free cash flow in 2025. Booking Holdings’ free cash flow supports continued dividend increases, but Booking Holdings’ advance merchant payments mean that support is not a guarantee.
How much does Booking Holdings pay in dividends?
Buybacks became the dominant use of that cash. In 2023, repurchases exceeded that year’s free cash flow, meaning Booking used earlier cash, investments, or borrowing. The company began its regular dividend policy in 2024, and the board authorized another $20 billion of repurchases in 2025. Buybacks reduce the number of shares sharing future earnings, while dividends send cash directly to shareholders.
Dividends remain $1.68 per share in the bear case because the latest quarterly payment was $0.42 and the board has stated an intention, rather than a fixed commitment, to pay quarterly dividends. The base case reaches $1.80, $2.01 and $2.21 by repeating the latest 9.4% annual increase. The bull case reaches $1.87, $2.22 and $2.55, requiring faster cash growth while buybacks and investment continue. Free cash flow was $9,087 million in 2025, which supports continued increases but not a guarantee.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Revenue | 26,917 | 23,739 | 21,365 | 17,090 | 10,958 |
| EPS, diluted | 6.62 | 6.91 | 4.70 | 3.05 | 1.13 |
| Dividend per share | 1.54 | 1.40 | 0.00 | 0.00 | 0.00 |
Is Booking Holdings’ dividend covered by its cash?
Free cash flow means operating cash after spending on long-lived assets such as equipment and software. Booking’s operating cash less capital spending leaves a large cash surplus because the company distributes travel supplied by hotels, airlines and other providers rather than building those assets itself.
Booking records advance merchant payments as deferred merchant bookings, a liability because cancellations may require refunds and much of the money belongs to providers. The balance was $5.27 billion at year-end 2025. Cash generation is excellent, but not every dollar is available for debt repayment or buybacks.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 9,087 | 7,894 | 6,999 | 6,186 | 2,516 |
| − Dividends paid | 1,248 | 1,174 | 0 | 0 | 0 |
| − Share buybacks | 6,440 | 6,509 | 10,377 | 6,621 | 163 |
| = Free cash flow not paid out | 1,399 | 211 | 2,353 | ||
| = Paid out more than the free cash flow | 3,378 | 435 | |||
| Paid to shareholders | 7,688 | 7,683 | 10,377 | 6,621 | 163 |
What could change Booking Holdings’ dividend?
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Earnings | 8,436 (7,319 / 8,700) | 9,184 (7,450 / 9,900) | 10,022 (7,595 / 11,253) |
| Shares (millions) | 712 (739 / 698) | 677 (728 / 649) | 645 (718 / 603) |
| Dividends per share | 1.80 (1.68 / 1.87) | 2.01 (1.68 / 2.22) | 2.21 (1.68 / 2.55) |
| Price to earnings | 16.00 (14.00 / 19.00) | 16.00 (13.00 / 20.00) | 16.00 (12.00 / 21.00) |
What is Booking Holdings’ dividend yield today?
The current free cash flow yield is 7.5%. In simple terms, $100 invested at that valuation corresponds to $7.50 of annual free cash flow. That cash can fund buybacks, dividends, debt repayment or investment; it is not automatically paid to shareholders. A lower real free cash flow yield of 7.0% gives a more conservative starting point, though its adjustment method remains unresolved.