May 28, 2026 a 07:46 am

AMCR: Dividend Analysis - Amcor plc

📊 Overview

Amcor plc operates in the packaging sector, renowned for its extensive range of packaging solutions. Its current dividend yield is positioned at an impressive 6.52%, signaling significant income potential for shareholders. The company has maintained a 13-year run of consistent dividend payments, reflecting robust financial health and commitment to returning capital to shareholders. However, recent analysis highlights challenges with the payout ratios, necessitating careful future monitoring.

Metric	Details
Sector	Packaging
Dividend yield	6.52%
Current dividend per share	2.66 USD
Dividend history	13 years
Last cut or suspension	None

🗣️ Dividend History

Amcor plc's consistent dividend history over 13 years signifies reliability and commitment to shareholders. This track-record is invaluable for investors seeking stable income. The recent dividend payments reflect minor incremental growth, demonstrating the company's conservative income strategy.

Year	Dividend per Share (USD)
2026	1.30
2025	2.56
2024	2.51
2023	2.46
2022	2.41

📈 Dividend Growth

Amcor plc showcases a stable, albeit modest, dividend growth rate, with 0.02% over the past 3 and 5 years. This growth rate underscores the company's consistent approach amidst varying market conditions and reinforces the appeal for long-term investors.

Time	Growth
3 years	2.03%
5 years	2.07%

The average dividend growth is 2.07% over 5 years. This shows moderate but steady dividend growth.

✅ Payout Ratio

Careful scrutiny of payout ratios highlights the sustainability of Amcor's dividends. A payout ratio above 100% signals higher risk of unsustainable dividend distribution, necessitating close monitoring of earnings consistency and cash flow health.

Key figure ratio	Percentage
EPS-based	181.73%
Free cash flow-based	101.03%

The EPS-based payout ratio of 181.73% is significantly high, warranting caution as it indicates potential overstretching of earnings. The free cash flow-based payout ratio at 101.03% also suggests close attention to cash flow health is needed.

📊 Cashflow & Capital Efficiency

Analyzing cash flow metrics and capital efficiency reveals the strength of Amcor's operational management. These ratios are essential for assessing the company's ability to sustain operations and drive profitable growth through optimal capital allocation.

Year	Free Cash Flow Yield	Earnings Yield	CAPEX/OCF	Stock-based Compensation/Revenue	Free Cash Flow / OCF Ratio
2025	5.55%	3.50%	41.73%	0.24%	58.27%
2024	6.00%	3.50%	37.24%	0.23%	62.76%
2023	5.02%	3.69%	41.71%	0.37%	58.29%

The stability in cash flow and capital allocation is critical for Amcor's financial health and shareholder retentions. Precision in CAPEX allocation influences future growth trajectory and margin sustainability.

⚠️ Balance Sheet & Leverage Analysis

Amcor's balance sheet analysis highlights the company's leverage, crucial for understanding its financial health in backing dividend commitments. These ratios ensure that the company's debt management is sustainable, mitigating financial risk.

Year	Debt-to-Equity	Debt-to-Assets	Debt-to-Capital	Net Debt to EBITDA	Current Ratio	Quick Ratio
2025	127.97%	40.49%	56.13%	8.02	1.20	0.71
2024	185.18%	43.49%	64.93%	3.57	1.17	0.69
2023	179.06%	42.40%	64.17%	3.06	1.19	0.69

High debt ratios necessitate prudent financial management to uphold balance sheet integrity. Amcor's financial strategies should focus on reducing leverage, enhancing liquidity, and maintaining fiscal discipline.

📊 Fundamental Strength & Profitability

Evaluating fundamental strength and profitability assists in understanding Amcor's long-term value creation ability. Critical metrics such as return on equity and profit margins showcase operational efficiency and profitability prowess.

Year	Return on Equity	Return on Assets	Net Margin	EBIT Margin	EBITDA Margin	R&D/Revenue
2025	4.36%	1.38%	3.40%	6.97%	11.78%	0.80%
2024	18.81%	4.42%	5.35%	9.20%	13.56%	0.78%
2023	26.03%	6.16%	7.13%	10.49%	14.48%	0.69%

Amcor's robust profitability metrics in recent years suggest strong management performance and competitive advantage. However, sustaining these levels will be crucial to withstand sectoral volatilities and drive long-term growth.

Price Development

Dividend Scoring System

Criterion	Description	Score
Dividend yield	Attractive yield level	4
Dividend Stability	Consistent payment history	4
Dividend growth	Stable, moderate increases	3
Payout ratio	Requires monitoring	2
Financial stability	Leverage concerns	2.5
Dividend continuity	Long-term track record	4.5
Cashflow Coverage	Potential stress signals	2.5
Balance Sheet Quality	Mixed indicators	3.5

🔍 Rating

Amcor plc presents a mixed dividend profile with attractive yield but overextended payout ratios. Though financially stable with reliable performance metrics, the company faces leverage challenges. As such, Amcor suits income-oriented investors seeking returns from a proven dividend-paying company while maintaining vigilance on cash flow sustainability and debt management.