IAG dividend
IAG's latest dividend is €0.098 per share, and the forecast raises it gradually from €0.10 to €0.12 per share. In 2025, dividends and buybacks absorbed 95.1% of free cash flow; after capital spending, lease-principal payments and stock pay, real free cash flow was €1,802 million.
How much does IAG pay per share over the years shown?
Dividends rise gradually in the base case from €0.10 to €0.12 per share. The bear path reaches only €0.07, while the bull reaches €0.17. The base starts near the latest €0.098 dividend, but planned annual capex of €4.9bn in 2027–28 limits faster growth. The bear recognizes that dividends were zero from 2021 through 2023.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Real free cash flow per share | 0.35 | 0.33 | -0.09 | -0.10 | -0.48 |
| − Dividends paid, per share | 0.09 | 0.03 | 0.00 | 0.00 | 0.00 |
| − Share buybacks, per share | 0.25 | 0.04 | 0.01 | 0.00 | 0.00 |
| = FCF not paid out, per share | 0.02 | 0.28 |
What this means. The company's own free cash flow per share is higher because it leaves out lease repayments, while our count also subtracts those repayments and the value of shares given to employees.
Is IAG's dividend covered by its cash?
- Cash through the cycle — Lease payments and fleet spending compete with shareholder returns. In 2025, dividends and buybacks absorbed 95.1% of free cash flow. That cash position sits alongside leases and the higher investment plan.
Capital spending and lease-principal payments then absorb much of the cash. After those deductions and stock pay, real free cash flow was €1,802 million. IAG’s own measure was higher because it stops before lease-principal payments. The two measures answer different questions, so the definition matters.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 1,802 | 1,819 | -411 | -476 | -2,366 |
| − Dividends paid | 471 | 149 | 0 | 0 | 0 |
| − Share buybacks | 1,243 | 202 | 77 | 23 | 24 |
| = Free cash flow not paid out | 88 | 1,468 | |||
| Paid out, % of free cash flow | 95.1% | 19.3% | not meaningful | not meaningful | not meaningful |
What could change IAG's dividend?
The forecast moves toward the bear case if fuel and emissions costs continue to outpace fares through 2027–2028, especially if recovery falls below the assumed 60%. It also moves lower if €4.9bn annual capex begins before new aircraft produce adequate returns, or if weaker bookings expose IAG's fixed lease obligations.
What is IAG's dividend yield today against its price?
The dividend yield is current cash income, not the whole prospective return. IAG’s price does not require spectacular growth; it requires repeatable earnings and cash generation after fuel, aircraft and financing commitments. That is what the valuation is assuming.
| Today (Oct 16, 2026) | |
|---|---|
| Share price | 414.80 |
| Free cash flow yield (calculated) | 8.4% |
| Real free cash flow yield (calculated) | 8.1% |
| Dividend yield (calculated) | 2.0% |
What this means. The enterprise value is lower than the market value because the company has more cash than debt.