July 15, 2026 a 11:31 am
BAX: Dividend Analysis - Baxter International Inc.
Baxter International Inc. has a notable dividend history spanning 45 years, which is indicative of its commitment to returning value to shareholders. Despite recent challenges in dividend growth, with both 3-year and 5-year growth rates being negative, the company has never cut or suspended dividends. This showcases a strong historical pattern of dividend stability.
📊 Overview
Baxter International Inc. offers a dividend yield of 1.06%, with a current dividend per share of $0.68 USD. The company's dividend history of 45 years underscores its dedication to maintaining shareholder distributions. Remarkably, there has been no recorded instance of a dividend cut or suspension recently.
| Detail | Value |
|---|---|
| Sector | Not provided |
| Dividend yield | 1.06 % |
| Current dividend per share | $0.68 |
| Dividend history | 45 years |
| Last cut or suspension | None |
📈 Dividend History
The track record of dividend payments is a crucial indicator of a company's reliability and commitment to shareholder returns. Baxter International's 45-year history of uninterrupted payments stands out as a beacon of stability.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | $0.02 |
| 2025 | $0.52 |
| 2024 | $1.04 |
| 2023 | $1.16 |
| 2022 | $1.15 |
📈 Dividend Growth
Dividend growth is essential for validating a company’s capability to increase shareholder returns over time. While Baxter has had a recent decline in growth, understanding the percentages over 3 and 5 years is critical.
| Time | Growth |
|---|---|
| 3 years | -23.25 % |
| 5 years | -11.45 % |
The average dividend growth is -11.45 % over 5 years. This shows moderate but steady dividend growth.
📊 Payout Ratio
The payout ratio serves as a critical measure of dividend sustainability from earnings and cash flow. With a negative EPS payout ratio, there are concerns regarding earnings covering dividends. However, the free cash flow-based payout ratio is more conservative.
| Key figure | Ratio |
|---|---|
| EPS-based | -31.82 % |
| Free cash flow-based | 49.07 % |
The negative EPS payout ratio highlights potential risks, whereas the moderate FCF ratio indicates a more prudent cash flow strategy for sustaining dividends.
📉 Cashflow & Capital Efficiency
Cash flow and capital allocation are critical for ensuring a company's operational flexibility and ability to fund dividends. The ratios emphasize cash generation ability and efficiency in capital use.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 3.29 % | 3.76 % | 6.59 % |
| Earnings Yield | -9.76 % | -4.36 % | 13.58 % |
| CAPEX to Operating Cash Flow | 61.78 % | 45.14 % | 25.26 % |
| Stock-based Compensation to Revenue | 1.04 % | 1.07 % | 1.11 % |
| Free Cash Flow / Operating Cash Flow Ratio | 38.22 % | 54.86 % | 74.74 % |
These cash flow metrics highlight the company's ability to fund operations efficiently and evaluate capital usage strategically.
📊 Balance Sheet & Leverage Analysis
Assessing a company's leverage is essential to understanding its long-term solvency and financial health. The balance sheet ratios provide context on debt risks.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 1.63 | 1.93 | 1.68 |
| Debt-to-Assets | 49.88 % | 52.16 % | 49.91 % |
| Debt-to-Capital | 62.01 % | 65.88 % | 62.68 % |
| Net Debt to EBITDA | 10.49 | 10.47 | 6.36 |
| Current Ratio | 1.56 | 1.36 | 1.48 |
| Quick Ratio | 1.56 | 1.05 | 1.18 |
| Financial Leverage | 3.27 | 3.70 | 3.37 |
The parameters suggest Baxter’s moderate leverage, but a strong net debt to EBITDA ratio implies potential debt service challenges.
📊 Fundamental Strength & Profitability
An understanding of fundamental health and profitability provides clearer insight into long-term strategies and operational efficiencies.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | -15.61 % | -9.32 % | 31.61 % |
| Return on Assets | -4.77 % | -2.52 % | 9.39 % |
| Margins: Net | -8.51 % | -6.10 % | 25.64 % |
| Margins: EBIT | -1.91 % | 1.12 % | 7.24 % |
| Margins: EBITDA | 6.81 % | 10.49 % | 16.74 % |
| Margins: Gross | 30.05 % | 37.46 % | 40.06 % |
| Research & Development to Revenue | 4.61 % | 5.55 % | 5.00 % |
Baxter's mixed fundamental performance highlights areas of strength, such as strong gross margins, contrasted by negative net and EBIT margins in recent years.
📈 Price Development
📊 Dividend Scoring System
| Criterion | Score | Bar |
|---|---|---|
| Dividend yield | 2 | |
| Dividend Stability | 4 | |
| Dividend growth | 1 | |
| Payout ratio | 3 | |
| Financial stability | 3 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 3 |
Overall Score: 24 out of 40
🗣️ Rating
Baxter International Inc. demonstrates a resilient dividend strategy despite recent concerns regarding growth and leverage. With a rich history of dividend payments and moderate overall financial health, it commands a niche position in dividend investing. However, potential investors should heed the negative payout ratios and debt levels when considering this stock for dividend income strategies.
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