The moves Tuesday are the first by the 2015 AL East champions since general manager Alex Anthopoulos left the team last week. Longtime Indians executive Mark Shapiro took over as president Monday and appointed former assistant Tony LaCava as interim GM.
Bautista, who had 40 home runs and 114 RBIs last season, will earn $14 million in 2016. Encarnacion, who had 39 homers and 111 RBIs, will earn $10 million. Dickey, who went 11-11 with a 3.91 ERA, will earn $12 million.
Toronto will pay $1 million to buy out the oft-injured Izturis, who was limited to 118 games over three seasons. His option price was $3 million.