CGI dividend: payment, cash cover and yield
CGI pays a quarterly dividend of C$0.17, and its free cash flow covers that payment. The cash also goes to buybacks, acquisitions and debt reduction.
How much does CGI pay its shareholders?
CGI began paying a quarterly dividend in fiscal 2025 and raised it to C$0.17 in January 2026. The board also renewed authority in January 2026 to repurchase up to 18,975,360 Class A shares. Those actions return cash while acquisitions require cash, so they increase the importance of disciplined borrowing and integration.
| Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | |
|---|---|---|---|---|---|
| Free cash flow per share | 8.60 | 8.41 | 7.54 | 6.40 | 7.21 |
| − Dividends paid, per share | 0.60 | 0.00 | 0.00 | 0.00 | 0.00 |
| − Share buybacks, per share | 5.65 | 4.03 | 3.32 | 3.76 | 5.94 |
| = FCF not paid out, per share | 2.35 | 4.38 | 4.22 | 2.64 | 1.27 |
What this means. Real free cash flow per share is lower because it subtracts the value of shares given to employees as pay.
Does CGI’s cash cover its dividend?
The strategy continued into fiscal 2026. CGI described capital allocation as investment in the business, accretive acquisitions, buybacks and dividends. The result is a clear trade-off: shareholder returns can be attractive, but the acquisitions must generate enough lasting cash to justify the capital and added debt.
| Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 1,940,121 | 1,948,488 | 1,791,269 | 1,554,866 | 1,824,448 |
| − Dividends paid | 135,052 | 0 | 0 | 0 | 0 |
| − Share buybacks | 1,274,530 | 934,765 | 788,020 | 913,388 | 1,502,824 |
| = Free cash flow not paid out | 530,539 | 1,013,723 | 1,003,249 | 641,478 | 321,624 |
| Paid out, % of free cash flow | 72.7% | 48.0% | 44.0% | 58.7% | 82.4% |
| Paid out, % of real free cash flow | 75.3% | 49.7% | 45.5% | 60.7% | 84.5% |
What this means. The company's own net debt is different because it includes leases, debt-related derivatives, and long-term investments, while our calculation leaves them out.
What could change CGI’s dividend?
The dividend base case holds at C$0.68 through October 2027, then rises to C$0.72 and C$0.76. The bear case holds at C$0.68 throughout. The bull case reaches C$0.72, C$0.80 and C$0.88. These assumptions reflect substantial free cash flow, but also the board’s discretion and competing debt, acquisition and buyback demands.
The view would move toward the bear case in 2027–2028 if federal procurement and client project starts remain delayed, reducing revenue growth and utilization. It would weaken further in 2027–2029 if AI lowers billable hours or forces pricing concessions.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Earnings | 1,977 (1,771 / 2,064) | 2,053 (1,749 / 2,196) | 2,130 (1,787 / 2,344) |
| Shares (millions) | 197 (203 / 194) | 188 (198 / 182) | 179 (194 / 171) |
| Dividends per share | 0.68 (0.68 / 0.72) | 0.72 (0.68 / 0.80) | 0.76 (0.68 / 0.88) |
| Price to earnings | 11.50 (10.00 / 13.00) | 12.00 (9.00 / 14.00) | 12.50 (9.00 / 15.00) |
What is CGI’s dividend yield today?
CGI shares are C$106.42. They trade at 13.2x trailing earnings and 10.9x next-twelve-month earnings. The 8.8% free-cash-flow yield sits beside a 5.8% buyback yield. FY2025 revenue grew 8.4%, while operating margin was 14.6%, down from 16.0% in FY2021. CGI’s reported real free cash flow was 11.8% of revenue, down from 14.7% in FY2021. Diluted EPS was C$7.35 and real free cash flow per share was C$8.30; buybacks were C$5.65 per share and average diluted shares fell 2.7%.