BP dividend
BP’s dividend rose from 8.32 to 8.66 cents per quarter. In 2025, dividends and buybacks exceeded BP’s free-cash-flow measure by 11.75 US cents per share, so cash did not cover all shareholder distributions.
How much does BP pay in dividends?
The tables show net debt falling sharply from 2021, then rising between 2024 and 2025. Real free cash flow per share fell from its 2022 peak to 44.64 US cents in 2025; the company’s own free cash flow per share was 51.41 US cents, while dividends and buybacks exceeded it by 11.75 US cents per share. The 5.8% real free-cash-flow yield deducts stock-based pay; enterprise value includes claims ahead of shareholders, while leases sit outside reported net debt. The 4.5% dividend yield is income, not promised total return.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Real free cash flow per share | 44.64 | 47.53 | 82.13 | 137.49 | 49.44 |
| − Dividends paid, per share | 31.79 | 29.75 | 27.09 | 22.95 | 21.24 |
| − Share buybacks, per share | 28.19 | 42.38 | 44.61 | 52.64 | 15.55 |
| = FCF not paid out, per share | 11.63 | 64.54 | 14.20 | ||
| = Paid out more than FCF, per share | 11.75 | 19.85 |
Is BP’s dividend covered by its cash?
In 2022, strong free cash flow supported shareholder payments, debt repayment and acquisitions, including Archaea. As cash generation weakened, BP continued paying dividends and buying back shares. Because those distributions leave the company, BP had to use existing cash, borrow, sell assets or accept less financial flexibility when they exceeded free cash flow.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 8,181 | 9,167 | 15,194 | 26,902 | 10,643 |
| − Dividends paid | 5,059 | 5,003 | 4,809 | 4,358 | 4,304 |
| − Share buybacks | 4,486 | 7,127 | 7,918 | 9,996 | 3,151 |
| = Free cash flow not paid out | 2,064 | 12,254 | 2,877 | ||
| = Paid out more than the free cash flow | 1,870 | 3,338 |
What could change BP’s dividend?
The dividend base case moves from 0.35 dollars per share to 0.379 dollars. The bear case falls to 0.23 dollars, while the bull case reaches 0.423 dollars. The base follows BP’s expectation of at least 4% annual dividend growth and the recent increase from 8.32 to 8.66 cents per quarter. The bear case reflects the risk that weaker cash flow and debt needs override that policy; dividends and buybacks already exceeded BP’s 2025 free-cash-flow measure when combined.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| EBITDA | 40,500 (30,000 / 48,000) | 38,000 (27,000 / 47,000) | 39,000 (28,500 / 49,000) |
| Dividends per share | 0.35 (0.31 / 0.36) | 0.36 (0.27 / 0.39) | 0.38 (0.23 / 0.42) |
| Enterprise value to ebitda | 4.00 (3.40 / 4.80) | 4.10 (3.00 / 5.00) | 4.20 (3.20 / 5.20) |
| Net debt | 16,012 (23,212 / 11,112) | 13,012 (27,312 / 1,012) | 9,612 (27,612 / -8,688) |
What is BP’s dividend yield today?
A dividend is cash paid to shareholders. Its yield measures that payment against the purchase price, but it is not a promised total return because the share price can fall. The dividend increase announced with the second-quarter results therefore helps the income case, but it does not settle the valuation.