June 13, 2025 a 11:31 am
CTVA: Dividend Analysis - Corteva, Inc.
Corteva, Inc., exhibited a moderate dividend yield and robust growth trajectory over recent years, with a focus on consistent shareholder returns. With promising financial stability, the company's dividend policy reflects both discipline and growth potential. Recent payout ratios suggest a sustainable and strategic approach to capital allocation.
📊 Overview
Analyzing Corteva's dividend strategy reveals a thoughtful approach to sustaining shareholder returns amidst sector-specific challenges. The company's sector alignment and financial health indicate a prudent strategy focused on longevity.
| Detail | Value |
|---|---|
| Sector | Chemicals |
| Dividend Yield | 0.96% |
| Current Dividend Per Share | 0.66 USD |
| Dividend History | 7 years |
| Last Cut or Suspension | None |
📅 Dividend History
Corteva has demonstrated a reliable dividend history over the last seven years, emphasizing its commitment to returning value to shareholders. The absence of cuts or suspensions strengthens investor confidence.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 0.34 |
| 2024 | 0.66 |
| 2023 | 0.62 |
| 2022 | 0.58 |
| 2021 | 0.54 |
📈 Dividend Growth
Dividend growth is a crucial indicator of a company's commitment to increasing shareholder value. Corteva has exhibited consistent growth due to strategic reinvestments and market positioning.
| Time | Growth |
|---|---|
| 3 years | 6.92% |
| 5 years | 20.48% |
The average dividend growth is 20.48% over 5 years. This shows moderate but steady dividend growth, reflecting strong fiscal strategies.
💹 Payout Ratio
The payout ratio provides insights into a company's ability to maintain dividends. Corteva's moderate ratios indicate careful dividend management, allowing retention for growth and stability.
| Key figure | Ratio |
|---|---|
| EPS-based | 39.67% |
| Free Cash Flow-based | 21.43% |
With a 39.67% EPS payout ratio and 21.43% FCF payout ratio, the company balances dividends with reinvestment opportunities, maintaining financial health.
💰 Cashflow & Capital Efficiency
Efficient capital allocation and robust cash flow are essential for sustaining operations and funding dividends. Corteva's cash flow analysis highlights its operational effectiveness and strategic resource deployment.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 3.92% | 3.46% | 0.63% |
| Earnings Yield | 2.30% | 2.16% | 2.71% |
| CAPEX to Operating Cash Flow | 20.53% | 33.63% | 69.38% |
| Stock-based Compensation to Revenue | 0% | 0% | 0.32% |
| Free Cash Flow / Operating Cash Flow Ratio | 72.17% | 66.37% | 30.62% |
The company's cash flows demonstrate resilience, with healthy returns on invested capital reflecting efficient management and the ability to sustain dividends.
📊 Balance Sheet & Leverage Analysis
Assessment of Corteva’s leverage and liquidity indicates a low dependency on debt, enabling flexibility in financial planning. Such metrics are vital for long-term investment strategies.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 11.36% | 9.94% | 5.17% |
| Debt-to-Assets | 6.62% | 5.79% | 3.07% |
| Debt-to-Capital | 10.20% | 9.04% | 4.91% |
| Net Debt to EBITDA | -0.15 | -0.06 | -0.69 |
| Current Ratio | 1.45 | 1.56 | 1.56 |
| Quick Ratio | 0.93 | 0.90 | 0.93 |
| Financial Leverage | 1.72 | 1.72 | 1.68 |
With low leverage ratios and strong current conditions, Corteva maintains excellent financial flexibility, supporting operational and strategic initiatives.
📉 Fundamental Strength & Profitability
Through assessing profitability metrics like return ratios and margins, we gauge the efficiency of Corteva’s operational processes and its capacity to generate returns.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 3.81% | 2.94% | 4.53% |
| Return on Assets | 2.22% | 1.71% | 2.69% |
| Net Margin | 5.36% | 4.27% | 6.57% |
| EBIT Margin | 8.92% | 7.70% | 8.62% |
| EBITDA Margin | 16.18% | 14.73% | 15.63% |
| Gross Margin | 43.64% | 42.41% | 40.21% |
| R&D to Revenue | 8.29% | 7.76% | 6.97% |
Corteva demonstrates strong profitability metrics, underscoring efficient management practices and a solid market position that supports robust financial performance.
🗣️ Price Development
✅ Dividend Scoring System
| Criterion | Score | Score Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 4 | |
| Dividend growth | 4 | |
| Payout ratio | 4 | |
| Financial stability | 5 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 5 |
Overall Score: 33/40
🏅 Rating
With a robust dividend history and solid growth mechanics, Corteva, Inc. presents as a reliable dividend-paying entity with praiseworthy financial metrics. It is ideally positioned for investors seeking steady dividend income while contributing to a diversified portfolio.