PBF Energy’s (NYSE:PBF) Dividend Will Be $0.275

PBF Energy Inc. (NYSE:PBF) has announced that it will pay a dividend of $0.275 per share on the 26th of November. This payment means the dividend yield will be 3.2%, which is below the average for the industry.

While the dividend yield is important for income investors, it is also important to consider any large share price moves, as this will generally outweigh any gains from distributions. Investors will be pleased to see that PBF Energy’s stock price has increased by 47% in the last 3 months, which is good for shareholders and can also explain a decrease in the dividend yield.

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The dividend yield is a little bit low, but sustainability of the payments is also an important part of evaluating an income stock. Even in the absence of profits, PBF Energy is paying a dividend. Along with this, it is also not generating free cash flows, which raises concerns about the sustainability of the dividend.

According to analysts, EPS should be several times higher next year. Assuming the dividend continues along recent trends, we think the payout ratio will be 8.5%, which makes us pretty comfortable with the sustainability of the dividend.

NYSE:PBF Historic Dividend November 2nd 2025

See our latest analysis for PBF Energy

The company has a long dividend track record, but it doesn’t look great with cuts in the past. Since 2015, the dividend has gone from $1.20 total annually to $1.10. Payments have been decreasing at a very slow pace in this time period. Generally, we don’t like to see a dividend that has been declining over time as this can degrade shareholders’ returns and indicate that the company may be running into problems.

With a relatively unstable dividend, it’s even more important to evaluate if earnings per share is growing, which could point to a growing dividend in the future. PBF Energy has impressed us by growing EPS at 5.8% per year over the past five years. It’s not great that the company is not turning a profit, but the decent growth in recent years is certainly a positive sign. Assuming the company can post positive net income numbers soon, it could has the potential to be a decent dividend payer.

In summary, while it’s good to see that the dividend hasn’t been cut, we are a bit cautious about PBF Energy’s payments, as there could be some issues with sustaining them into the future. The track record isn’t great, and the payments are a bit high to be considered sustainable. We would probably look elsewhere for an income investment.

Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. To that end, PBF Energy has 2 warning signs (and 1 which is concerning) we think you should know about. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.