November 13, 2025 a 11:31 am
CFG: Dividend Analysis - Citizens Financial Group, Inc.
Citizens Financial Group, Inc., a notable entity in the financial sector, presents a compelling dividend profile highlighted by its consistent dividend history and yield. With a current dividend yield of 3.41%, the firm continues to attract income-focused investors. However, attention should be paid to payout ratios which indicate a balanced yet cautious approach to dividends.
Overview
| Category | Details |
|---|---|
| Sector | Financials |
| Dividend yield | 3.41% |
| Current dividend per share | 2.00 USD |
| Dividend history | 12 years |
| Last cut or suspension | None |
Dividend History
The company's dividend history demonstrates a steady increase, indicating a strong commitment to returning value to shareholders. This track record not only boosts investor confidence but also supports stock price stability.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 1.72 |
| 2024 | 1.68 |
| 2023 | 1.68 |
| 2022 | 1.62 |
| 2021 | 1.56 |
Dividend Growth
The growth in dividends over the past few years showcases the company's ability to enhance shareholder value progressively. This growth reflects efficient capital management and long-term profitability.
| Time | Growth |
|---|---|
| 3 years | 2.50% |
| 5 years | 4.32% |
The average dividend growth is 4.32% over 5 years. This shows moderate but steady dividend growth.
Payout Ratio
The payout ratio is a measure of dividend sustainability. It provides insights into the balance between profit returned to shareholders and the amount retained by the company.
| Key figure | Ratio |
|---|---|
| EPS-based | 50.72% |
| Free cash flow-based | 74.38% |
The EPS-based payout ratio of 50.72% is within a manageable range, indicating healthy earnings retention. Conversely, the 74.38% FCF-based ratio suggests a higher propensity towards dividend distribution.
Cashflow & Capital Efficiency
Analyzing cashflow and capital efficiency is vital for assessing operating efficiency and resource utilization, which underpin dividend sustainability.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 9.53% | 17.71% | 21.31% |
| Earnings Yield | 7.65% | 10.21% | 11.06% |
| CAPEX to Operating Cash Flow | 6.10% | 5.81% | 3.06% |
| Stock-based Comp. to Revenue | 0.79% | 0.71% | 0.93% |
| Free Cash Flow / Operating Cash Flow Ratio | 93.90% | 94.19% | 96.94% |
The company demonstrates strong capital efficiency, as evidenced by favorable free cash flow yields. The stability in operating cash flows further supports continued dividend reliability.
Balance Sheet & Leverage Analysis
Examining balance sheet strength is essential for understanding financial stability and leverage, which impact a firm's ability to sustain dividends amid macroeconomic fluctuations.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.51 | 0.57 | 0.67 |
| Debt-to-Assets | 0.057 | 0.063 | 0.070 |
| Debt-to-Capital | 0.338 | 0.365 | 0.401 |
| Net Debt to EBITDA | 0.49 | 0.77 | 1.57 |
| Current Ratio | 0.25 | 0.24 | 0.20 |
| Quick Ratio | 0.25 | 0.24 | 0.20 |
| Financial Leverage | 8.97 | 9.12 | 9.57 |
The historical financial ratios highlight a stable debt management strategy, reflected in acceptable leverage levels and liquidity positions. Such stability underpins the firm’s dividend commitment.
Fundamental Strength & Profitability
Fundamentals and profitability ratios shed light on financial health and operational success, key determinants for dividend potential and investor appeal.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 6.22% | 6.61% | 8.75% |
| Return on Assets | 0.69% | 0.72% | 0.91% |
| Net Margin | 12.22% | 13.19% | 22.86% |
| EBIT Margin | 15.29% | 16.66% | 29.28% |
| EBITDA Margin | 19.32% | 20.58% | 35.51% |
| Gross Margin | 57.56% | 61.84% | 83.22% |
| R&D to Revenue | 0% | 0% | 0% |
CFG's profitability metrics reflect competitive returns with impressive gross margins supporting high sustainability and future investment potential.
Price Development
Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 4 | |
| Dividend growth | 3 | |
| Payout ratio | 4 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 5 | |
| Balance Sheet Quality | 4 |
Overall Score: 33/40
Rating
In conclusion, Citizens Financial Group, Inc. stands as a robust dividend performer within the financial sector. The consistency and growth in dividend payments, alongside a prudent payout policy, provide a substantial degree of confidence for dividend-seeking investors. The balance sheet analysis underscores financial stability, enhancing prospects for sustained future dividends. Overall, CFG is recommended as a sound dividend investment with moderate growth potential.