Open Text Corporation
OTEXTechnology · Stock · quarterly payer
Forward Yield
4.75%
Annual Dividend
$1.12
Payout Ratio
43%
5-Yr Growth
8.2%
Ex-Date
Sep 4, 2026
Frequency
Quarterly
Summary
As of September 2026, Open Text Corporation (OTEX) yields 4.75% ($1.12 per share annually), with a blended fair-value estimate of $15.20 — -39% downside, so it screens as overvalued. Dividend safety grade: A (81/100). 12 years of dividend growth.
Is OTEX a good dividend stock?
YesOpen Text Corporation (OTEX) pays a quarterly dividend yielding 4.75% ($1.12/yr), with 12 years of growth and a dividend-safety grade of A. It scores well across payout coverage, growth history and safety — a dependable income holding.
Advantages
- 12 consecutive years of dividend growth
- Never cut its dividend on record
- Comfortable payout ratio (43%)
- Strong 8.2% 5-yr dividend growth
- Top-tier dividend safety score
Risks
- Share price is down over the past 5 years
Key Data
- Dividend Yield
- 4.75%
- Payout Ratio
- 43%
- Annual Dividend
- $1.12
- 5-Yr Avg Growth
- 8.2%
- Ex-Dividend Date
- Sep 4, 2026
- Years of Growth
- 12
- Frequency
- quarterly
- Beta
- 1.03
- Market Cap
- $6.0B
- P/E Ratio
- 9.6
- 5-Yr Total Return
- -49%
- 52-Week Range
- $19.78 – $39.90
- Dividend Safety
- A · 81/100
- Ever Cut?
- No
Frequently Asked Questions
OTEX Price — Last 12 Months
Daily close
Price Return
1 Year
-33%
3 Years
-28%
5 Years
-49%
52-Week Range
$19.78 – $39.90
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is OTEX worth?
Overvaluedhigh confidenceOur blended fair-value estimate for Open Text Corporation is $15.20 per share, versus a market price of $25.10. That implies 39% of downside.
Fair Value
$15.20
Current Price
$25.10
Downside
-39%
Margin of Safety
-65%
How we get there
Discounted cash flow
Discounts projected free cash flow back to today.
Dividend discount
Discounts the future dividend stream back to today.
Earnings multiple (Graham)
Graham's earnings-multiple formula, anchored to bond yields.
At today's price, the market is pricing in about 2.1% annual free-cash-flow growth. We model -4.5% — so the price already assumes faster growth than we think is likely.
Assumptions: 9.5% discount rate (CAPM), -4.5% stage-1 growth, 2.5% terminal growth, $2.57 EPS, $1.12 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
OTEX Dividend Safety Score
Very Safe
SmarterDividends' proprietary score, backtested against which dividends were actually cut over 15+ years (0.78 AUC). It blends a validated cut-risk model (growth streak, cut history) with current payout, cash-flow and debt. Higher is safer · not investment advice.
Dividend Growth
Total dividends per share by year
Dividend History
| Ex-Date | Pay Date | Amount | Type |
|---|---|---|---|
| Jun 5, 2026 | — | $0.2750 | regular |
| Mar 6, 2026 | — | $0.2750 | regular |
| Dec 5, 2025 | — | $0.2750 | regular |
| Sep 5, 2025 | — | $0.2750 | regular |
| Jun 6, 2025 | — | $0.2630 | regular |
| Mar 7, 2025 | — | $0.2630 | regular |
| Nov 29, 2024 | — | $0.2630 | regular |
| Aug 30, 2024 | — | $0.2630 | regular |
| May 31, 2024 | — | $0.2500 | regular |
| Feb 29, 2024 | — | $0.2500 | regular |
| Nov 30, 2023 | — | $0.2500 | regular |
| Aug 31, 2023 | — | $0.2500 | regular |
| Jun 1, 2023 | — | $0.2430 | regular |
| Mar 2, 2023 | — | $0.2430 | regular |
Income Calculator
At $1.12 / yr per share
