How much has Air Products' dividend grown over time?

The quarterly dividend has grown 134% over ten years, rising from roughly $0.17 in 1999 to $1.81 in 2026, and the company has raised its dividend for 44 consecutive years.

How does Air Products generate cash to sustain its dividend increases?

Operating cash flow has covered the dividend roughly 2x or better every year for a decade, producing $3 billion（約4800億円） to $3.6 billion（約5800億円） of operating cash annually. The company's contracts include energy cost pass-throughs, insulating it from input cost volatility.

What recent major deals did Air Products announce?

CEO Eduardo Menezes announced a Samsung agreement to build, own, and operate gas supply for an advanced Korean semiconductor fab, which he called 'the largest investment we ever made in the electronics side,' and the company is supplying liquid hydrogen and helium to NASA's Artemis program.

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Air Products raised its dividend to $1.81 per quarter, extending a 44-year streak of increases, as the industrial gas supplier posted 9% revenue growth and locked in major contracts with Samsung and NASA.

Yahoo Finance AI1d ago4 min read

Key takeaway

Air Products, a supplier of industrial gases to refineries, semiconductors, hospitals, and food processors, raised its quarterly dividend to $1.81 and reported strong Q2 earnings with 9% revenue growth and 19% adjusted EPS growth. The company secured a major contract with Samsung to supply gases for a Korean semiconductor fab and is supplying NASA's Artemis program, anchoring its business through multi-decade customer contracts that include energy cost pass-throughs.

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3 Key Points

What happened
Air Products announced a Q1 FY26 dividend increase to $1.81 per quarter, continuing a streak dating back decades. The company also reported Q2 FY2026 revenue rose 9% to $3.171 billion（約5100億円）, adjusted EPS grew 19%, and operating margin expanded over 200 basis points to 23.7%. A new Samsung agreement to supply gas for an advanced Korean semiconductor fab was described by CEO Eduardo Menezes as 'the largest investment we ever made in the electronics side,' and the company is supplying liquid hydrogen and helium to NASA's Artemis program.
Why it matters
Air Products operates under multi-decade take-or-pay contracts with customers (refineries, semiconductor fabs, hospitals, food processors) who cannot easily switch suppliers without risking shutdown. The company's operating cash flow has covered the dividend roughly 2x or better every year for a decade, and the quarterly payout has grown 134% over ten years while the underlying cash engine produced $3 billion（約4800億円） to $3.6 billion（約5800億円） of operating cash annually. Industrial gas demand is non-discretionary, and the company's contracts include energy cost pass-throughs, making it structurally resilient.
What to watch
The company is guiding to $13.00 to $13.25 in adjusted EPS while reducing capex to approximately $4 billion（約6400億円） in fiscal 2026 from over $7 billion（約1.1兆円） the prior year. The forward yield sits around 2.56% on a share price of $282.45. Over the past 30 days following Q2 earnings, the stock fell 6.92% while the broader market rose, highlighting that this holding may underperform in risk-on environments.

FAQ

How much has Air Products' dividend grown over time?: The quarterly dividend has grown 134% over ten years, rising from roughly $0.17 in 1999 to $1.81 in 2026, and the company has raised its dividend for 44 consecutive years.
How does Air Products generate cash to sustain its dividend increases?: Operating cash flow has covered the dividend roughly 2x or better every year for a decade, producing $3 billion（約4800億円） to $3.6 billion（約5800億円） of operating cash annually. The company's contracts include energy cost pass-throughs, insulating it from input cost volatility.
What recent major deals did Air Products announce?: CEO Eduardo Menezes announced a Samsung agreement to build, own, and operate gas supply for an advanced Korean semiconductor fab, which he called 'the largest investment we ever made in the electronics side,' and the company is supplying liquid hydrogen and helium to NASA's Artemis program.

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