Citi dividend: payment, coverage and yield
Citi's current quarterly dividend is $0.67 per share, and the forecast starts at $2.68 per share. The latest year paid out more than it earned; for a bank, free cash flow is not a clean coverage measure, so earnings replenishing capital matter.
How much does Citi pay in dividends?
The dividend starts at $2.68 per share, reflecting the current quarterly rate of $0.67. The base case reaches $2.88 in October 2028 and $3.12 in October 2029. That is measured growth below the recent 12% increase, consistent with Citi’s stated aim to maintain payout and yield. The bear case falls to $2.17 as capital pressure forces two reductions. The bull case reaches $3.36 as earnings and capital generation support repeated 12% increases. Analysts forecast EPS of $13.16 for 2027 and $15.00 for 2028, leaving room for the base dividend path.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| EPS, diluted | 6.99 | 5.95 | 4.04 | 7.11 | 10.14 |
| − Dividends, per share | 2.32 | 2.17 | 2.08 | 2.05 | 2.05 |
| = Kept, per share | 2.55 | 1.01 | 3.44 | 4.44 |
What this means. In 2025, the company paid shareholders more than it earned because dividends and share buybacks together exceeded its profit per share.
Is Citi's dividend covered by its cash?
Free cash flow works poorly for a bank because deposits and loans are part of the product. A deposit brings in cash but creates an obligation to repay. A loan uses cash but creates an earning asset. Neither movement alone proves that money is available for distribution.
The pace of shareholder returns changed sharply. Dividends were relatively steady, while buybacks became the adjustable payment. The latest year paid out more than it earned, even though the five-year bridge still shows capital retained. Repurchases reduced the number of claims on future profits, but they also reduced capital and could destroy value if Citi paid too much.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| = Earnings for common shareholders | 13,195 | 11,630 | 8,031 | 14,044 | 20,905 |
| − Dividends declared on common shares | 4,340 | 4,218 | 4,076 | 4,028 | 4,196 |
| − Share buybacks | 13,250 | 2,474 | 1,977 | 3,250 | 7,601 |
| = Kept to grow and build capital | 4,938 | 1,978 | 6,766 | 9,108 | |
| = Paid out more than it earned | 4,395 |
What this means. The company’s own payout ratio counts only dividends, while ours also counts share buybacks, so in 2025 it paid shareholders more than it earned overall.
What could change Citi's dividend?
The view would move toward the bear case during 2027–2029 if control costs rise, savings slip, trading and card revenue weaken, or credit provisions increase. A constrained capital position would be especially damaging from 2028 onward because it would slow buybacks and compress the multiple.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Book value | 198,650 (190,650 / 202,550) | 205,650 (186,850 / 213,350) | 214,450 (192,050 / 225,850) |
| Shares (millions) | 1,608 (1,634 / 1,588) | 1,565 (1,603 / 1,528) | 1,525 (1,569 / 1,474) |
| Dividends per share | 2.68 (2.68 / 2.68) | 2.88 (2.41 / 3.00) | 3.12 (2.17 / 3.36) |
| Price to book value | 1.10 (0.85 / 1.15) | 1.15 (0.90 / 1.30) | 1.20 (0.95 / 1.45) |