OpenText dividend: history, coverage and yield

OpenText pays 0.28 dollars per share quarterly, or 1.12 dollars annually. FY2026 free cash flow covered 268.4 million dollars of dividends, while the remaining cash also had to fund software investment and debt repayment.

How much does OpenText pay per share over the years shown?

The dividend begins at 1.12 dollars per share because the latest quarterly rate was 0.28 dollars. The base case raises it to 1.16 dollars and then 1.20 dollars, below the recent five-year pattern of increases. The bear case holds it at 1.12 dollars before cutting to 0.84 dollars. The bull case reaches 1.20 dollars and then 1.28 dollars. The lower cash-flow outlook and high debt justify restraint, although FY2026 free cash flow covered 268.4 million dollars of dividends.

Is OpenText's dividend covered by its cash?

A low forward P/E means investors pay little for forecast earnings, but forecasts can fail and accounting earnings are not the same as spendable cash. FY26 operating cash flow was US$1,006.8 million. After capital expenditure, free cash flow was US$807.5 million, against dividends of US$268.4 million. That coverage looks comfortable, but the remaining cash must also fund software investment and debt repayment.

What could change OpenText's dividend?

For FY2027, management guides to 2.0–3.0% constant-currency growth in Core categories. It guides to 8.0–10.0% Core cloud growth. Reported revenue is expected to decline 1.0–2.0%. The plan calls for US$100–200 million of growth investment, including 300 quota-carrying sales colleagues. Management guides to a 32.0–33.0% adjusted EBITDA margin and US$625–725 million of free cash flow.