Pinnacle West dividend
MyStockButler's October 2026 analysis: Pinnacle West pays $3.70 per share after the October 2026 increase of 1.6%, with dividends rising from $3.36 in 2021 to $3.61 in 2025. Its free cash flow was negative every year from 2021 through 2025, so dividends were maintained with debt and new shares rather than surplus cash.
How much does Pinnacle West pay per share?
The dividend starts at $3.70 per share after the October 2026 increase of 1.6%. The base case raises it to $3.76, $3.82, and $3.88 as the company repeats its pattern of small increases. Dividends rose from $3.36 in 2021 to $3.61 in 2025.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| EPS, diluted | 5.05 | 5.24 | 4.41 | 4.26 | 5.47 |
| Real free cash flow per share | -6.94 | -5.70 | -5.76 | -4.25 | -5.58 |
| Free cash flow per share | -6.72 | -5.50 | -5.61 | -4.11 | -5.42 |
| − Dividends paid, per share | 3.47 | 3.40 | 3.40 | 3.34 | 3.26 |
What this means. The company made negative free cash flow, so the cash it paid to owners was greater than the cash its business generated.
How much would Pinnacle West's dividend pay you?
$10,000 invested in Pinnacle West at its 3.5% dividend yield (our report of October 24, 2026) pays $350.00 in the first year, before tax. If its dividend per share keeps changing 1.6% a year, as it did from 2021 to 2025, and the dividends are reinvested, year 10 pays $559.95, with $4,461.98 received in all.
Before tax. Past dividend growth is not a promise. Information only, not investment advice.
Is Pinnacle West’s dividend covered by its cash?
Pinnacle West spent more on infrastructure than its operations generated after investment, so debt and new shareholders helped preserve the dividend.
The company continued dividends and issued debt and new shares, while making no share repurchases. Net debt rose over the period. That was a deliberate capital decision: maintain distributions while financing construction through lenders and equity investors. It also means shareholders bear more interest, dilution and construction risk before the new assets prove their returns.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | -819,523 | -639,372 | -638,673 | -466,049 | -613,461 |
| − Dividends paid | 422,792 | 394,663 | 386,486 | 378,881 | 369,478 |
| − Share buybacks | 0 | 0 | 0 | 0 | 0 |
| = Paid out more than the free cash flow | 1,260,356 | 1,055,290 | 1,046,414 | 866,185 | 1,004,194 |
| + New shares sold | 84,613 | 341,429 | -4,093 | -2,653 | -2,350 |
| + Debt issued | 2,531,309 | 1,863,229 | 931,249 | 924,257 | 888,999 |
What this means. The company paid dividends even though it had negative free cash flow, so it had to use savings or new borrowing to cover them.
What could change Pinnacle West’s dividend?
The bear case holds the payout at $3.70 because construction spending exceeds operating cash and rate recovery remains unsettled. The bull case reaches $3.82, $3.94, and $4.06 by assuming increases twice as large as the latest rise.
The December 2026 rate-case decision is the first major test. Faster recovery on completed investment would move the forecast toward the bull case; a lower return or continued lag would move it toward the bear case.
What is Pinnacle West’s dividend yield today?
| Today (Oct 24, 2026) | |
|---|---|
| Share price | 105.88 |
| Free cash flow yield (calculated) | -6.4% |
| Real free cash flow yield (calculated) | -6.6% |
| Dividend yield (calculated) | 3.5% |
What this means. The whole business value is much higher than the stock-market value because the company has more debt than cash and short-term investments.