Otis dividend: cash, yield and outlook
MyStockButler's October 2026 analysis: Otis pays a declared $0.44 quarterly dividend, with a base path of $1.80 in 2027, $1.90 in 2028 and $2.00 in 2029. Dividends and buybacks slightly exceeded free cash flow in 2025 and again in 2024.
How much does Otis pay its shareholders?
The base dividend path is $1.80 in 2027, $1.90 in 2028 and $2.00 in 2029. The bear case holds the declared $0.44 quarterly rate, producing $1.76 annually. The bull case reaches $1.84, $2.04 and $2.24 as cash generation improves. The base follows the recent 5% increase and the 40% payout target, but debt makes a pause plausible.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| Earnings | 1,617 (1,444 / 1,669) | 1,701 (1,417 / 1,820) | 1,788 (1,404 / 1,978) |
| Shares (millions) | 372 (377 / 370) | 364 (373 / 360) | 356 (369 / 350) |
| Dividends per share | 1.80 (1.76 / 1.84) | 1.90 (1.76 / 2.04) | 2.00 (1.76 / 2.24) |
How much would Otis's dividend pay you?
$10,000 invested in Otis at its 2.4% dividend yield (our report of October 29, 2026) pays $240.00 in the first year, before tax. If its dividend per share keeps changing 15.9% a year, as it did from 2021 to 2025, and the dividends are reinvested, year 10 pays $1,357.32, with $6,385.80 received in all.
Before tax. Past dividend growth is not a promise. Information only, not investment advice.
Is Otis's dividend covered by its cash?
Dividends and buybacks slightly exceeded free cash flow in 2025, and they did so again in 2024. That is possible because free cash flow is not a legal limit: Otis can also use cash already held, borrowings or proceeds from divestitures. The trade-off is flexibility. Money returned to shareholders cannot also repay debt or fund service investment.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 1,444 | 1,437 | 1,489 | 1,445 | 1,594 |
| − Dividends paid | 647 | 606 | 539 | 465 | 393 |
| − Share buybacks | 809 | 1,007 | 800 | 850 | 725 |
| = Free cash flow not paid out | 65 | 12 | 321 | ||
| Paid out, % of free cash flow | 100.8% | 112.2% | 89.9% | 91.0% | 70.1% |
What this means. The company paid out more than its free cash flow in 2025 and 2024, so it had to use savings or borrow money to cover the difference.
What could change Otis's dividend?
Fourth-quarter 2026 results must show whether Service margins and cash generation hold toward the full-year outlook. On December 15, 2026, €600 million of notes mature; repayment and any further buybacks will show how Otis balances debt with shareholder returns. The expected CEO transition in the first half of 2027, no later than July 31, 2027, will test whether new leadership can improve margins without weakening Service. By 2027, China service growth, retention and profitable modernization must replace weaker construction-driven earnings.
What is Otis's dividend yield today against its share price?
| Today (Oct 29, 2026) | |
|---|---|
| Share price | 72.87 |
| P/E, next 12 months (calculated) | 16.1x |
| Dividend yield (calculated) | 2.4% |
What this means. The price-to-book number is not meaningful because the company owes more than it owns on paper.