October 05, 2025 a 03:32 am
CTVA: Dividend Analysis - Corteva, Inc.
Corteva, Inc. presents a solid investment opportunity with its established position in the agricultural sector. The company has demonstrated a steady dividend growth over the past 5 years, providing a reasonable yield to its investors. With a commitment to financial stability and continuous dividend payments, Corteva proves to be a compelling choice for dividend-oriented portfolios. However, investors should keep an eye on the current market conditions that might impact future yields.
📊 Overview
The following table gives a snapshot of essential dividend-related metrics for Corteva, Inc.
| Metric | Details |
|---|---|
| Sector | Agricultural Products |
| Dividend yield | 0.93% |
| Current dividend per share | $0.66 |
| Dividend history | 7 years |
| Last cut or suspension | None |
📈 Dividend History
Corteva has consistently paid dividends over the past years, reflecting its commitment to returning value to shareholders. This consistent payout is crucial for investors seeking steady income and indicates financial robustness.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 0.52 |
| 2024 | 0.66 |
| 2023 | 0.62 |
| 2022 | 0.58 |
| 2021 | 0.54 |
📉 Dividend Growth
The growth in dividend payouts is an important indicator of a company's potential to enrich its shareholders. Corteva's dividend growth over 3 and 5 years shows promising trends for long-term investors.
| 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.
✅ Payout Ratio
Payout ratios provide insight into how sustainable a company's dividends are. Corteva maintains a healthy EPS-based payout ratio of 32.13%, indicating strong dividend coverage.
| Key Figure | Ratio |
|---|---|
| EPS-based | 32.13% |
| Free cash flow-based | 17.28% |
With a relatively low EPS payout ratio of 32.13% and an FCF payout ratio of 17.28%, Corteva has ample capacity to sustain and potentially increase its dividend payments, highlighting a secure payout strategy.
💰 Cashflow & Capital Efficiency
Cashflow analysis is vital to determine a company's ability to sustain and increase its dividends in the future.
| Year | 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 | 27.83% | 33.63% | 69.38% |
| Stock-based Compensation to Revenue | 0% | 0% | 0.32% |
| Free Cash Flow / Operating Cash Flow Ratio | 72.17% | 66.36% | 30.62% |
The consistent free cash flow yield and low CAPEX ratios underscore Corteva's strong financial health, enabling efficient capital allocation towards dividends and growth investments.
⚖️ Balance Sheet & Leverage Analysis
Evaluating leverage ratios gives insight into the company's financial stability and its ability to meet long-term obligations.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.1136 | 0.0994 | 0.0517 |
| Debt-to-Assets | 0.0662 | 0.0579 | 0.0307 |
| Debt-to-Capital | 0.1020 | 0.0904 | 0.0491 |
| Net Debt to EBITDA | -0.1473 | -0.0611 | -0.6906 |
| Current Ratio | 1.68 | 1.56 | 1.56 |
| Quick Ratio | 0.93 | 0.90 | 0.93 |
| Financial Leverage | 1.72 | 1.72 | 1.68 |
With low leverage ratios, Corteva demonstrates sound financial health, ensuring the ability to service its debt without compromising financial flexibility or dividend payments.
📈 Fundamental Strength & Profitability
Fundamental metrics like ROE and margins are crucial for evaluating company efficiency and profitability, directly impacting its dividend capacity.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 3.81% | 2.94% | 4.53% |
| Return on Assets | 2.22% | 1.71% | 2.69% |
| Margins: Net | 5.36% | 4.27% | 6.57% |
| Margins: EBIT | 8.92% | 7.70% | 8.62% |
| Margins: EBITDA | 16.18% | 14.73% | 15.63% |
| Margins: Gross | 43.64% | 42.41% | 40.21% |
| Research & Development to Revenue | 8.29% | 7.76% | 6.97% |
Consistent profitability and efficient capital allocation have positioned Corteva as a financially robust entity capable of sustaining its dividend policy while investing in future innovations through R&D.
💹 Price Development
🏆 Dividend Scoring System
| Category | Score | |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 4 | |
| Dividend growth | 4 | |
| Payout ratio | 5 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 5 |
Overall Score: 34 out of 40
⭐ Rating
Corteva, Inc. boasts a commendable dividend payment history and strong financial credentials, making it a suitable candidate for investors focused on dividend income. With ongoing strategic commitments to dividend increments and sustainable financial practices, Corteva holds a "Buy" recommendation for dividend investors.