May 31, 2026 a 03:31 pm
AME: Dividend Analysis - AMETEK, Inc.
AMETEK, Inc., a leader in the industrial sector, boasts an impressive dividend history of 43 years, accentuating its commitment to returning capital to shareholders. With a modest dividend yield of 0.58%, it reflects a consistent, albeit conservative, dividend payout strategy. The company has demonstrated significant growth in its dividends over recent years, underscoring its robust financial health and strong cash flow position.
📊 Overview
AMETEK operates within the industrial sector, characterized by its impressive dividend longevity. The conservative but stable dividend yield reflects a calculated approach towards growth and stability.
| Metric | Value |
|---|---|
| Sector | Industrial |
| Dividend yield | 0.58% |
| Current dividend per share | 1.24 USD |
| Dividend history | 43 years |
| Last cut or suspension | None |
🗣️ Dividend History
The 43-year unbroken dividend history signifies AMETEK's solid track record of shareholder rewards, demonstrating resilience across economic cycles. This history is crucial for investors seeking stable income.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 0.68 |
| 2025 | 1.24 |
| 2024 | 1.12 |
| 2023 | 1.00 |
| 2022 | 0.88 |
📈 Dividend Growth
The pattern of dividend growth over the years demonstrates AMETEK's ability to increase payouts, thereby enhancing shareholder value. Focusing on year-on-year growth highlights its strategic financial management.
| Time | Growth |
|---|---|
| 3 years | 12.11% |
| 5 years | 11.49% |
The average dividend growth is 11.49% over 5 years. This shows moderate but steady dividend growth, reflecting strong earnings and cash flow expansion.
⚠️ Payout Ratio
Payout ratios are key indicators of a company's ability to sustain dividends. AMETEK's low payout ratios hint at ample room to maintain or even increase dividends in the foreseeable future.
| Key figure | Ratio |
|---|---|
| EPS-based | 18.55% |
| Free cash flow-based | 16.66% |
With payout ratios at 18.55% (EPS) and 16.66% (FCF), AMETEK showcases a disciplined dividend scheme, reinforcing its capability to continue rewarding shareholders while funding growth initiatives.
✅ Cashflow & Capital Efficiency
Strong cash generation and capital efficiency are vital for sustaining dividends. These metrics assess AMETEK's effectiveness in utilizing its resources to generate cash flow.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 3.53% | 4.08% | 4.21% |
| Earnings Yield | 3.13% | 3.30% | 3.45% |
| CAPEX to Operating Cash Flow | 7.23% | 6.95% | 7.85% |
| Stock-based Compensation to Revenue | 0.69% | 0.70% | |
| Free Cash Flow / Operating Cash Flow Ratio | 92.77% | 93.05% | 92.15% |
| Return on Invested Capital | 11.04% | 11.13% | 10.25% |
AMETEK exhibits sturdy cash flow with high efficiency in capital deployment, further strengthening its position to deliver consistent dividends.
📊 Balance Sheet & Leverage Analysis
A robust balance sheet with manageable leverage ratios is crucial for long-term financial health. AMETEK's leverage profile suggests prudent financial management.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 21.48% | 24.07% | 38.65% |
| Net Debt to EBITDA | 0.97x | 0.90x | 1.46x |
| Current Ratio | 1.06 | 1.24 | 0.98 |
| Quick Ratio | 0.67 | 0.75 | 0.59 |
| Financial Leverage | 1.51x | 1.52x | 1.72x |
The company maintains a solid financial position with ample liquidity, mitigating risks associated with leverage effectively.
📉 Fundamental Strength & Profitability
Examining profitability and fundamental strength factors aids in evaluating the company’s ability to grow profits and sustain investor returns over time.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 13.93% | 14.25% | 15.04% |
| Return on Assets | 9.21% | 9.41% | 8.74% |
| Net Margin | 20.00% | 19.83% | 19.91% |
| EBIT Margin | 25.40% | 25.56% | 25.59% |
| Gross Margin | 36.38% | 35.68% | 36.14% |
| R&D to Revenue | 3.41% | 3.35% |
AMETEK showcases robust profitability metrics, pivotal for maintaining investment appeal and shareholder satisfaction.
Price Development
🎯 Dividend Scoring System
| Category | Score | Score Bar |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 5 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 34/40
🔍 Rating
AMETEK, Inc. is a reliable choice for dividend-focused investors seeking stability over high yields. With prudent financial management, impressive dividend growth history, and strong fundamentals, it offers a balance of consistency and growth potential.
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