October 22, 2025 a 03:31 pm
CTVA: Dividend Analysis - Corteva, Inc.
Corteva, Inc. shows a promising dividend profile supported by a stable financial background. The company has maintained a consistent dividend history over the past seven years, indicating reliable payouts. The moderate dividend yield, coupled with a healthy payout ratio, provides room for future growth. Although the current yield may not be extremely high, the sustainable growth rate suggests potential long-term value for income-focused investors.
📊 Overview
Corteva, Inc. operates in the Agriculture sector, and its current dividend metrics provide an interesting perspective for dividend investors.
| Metric | Value |
|---|---|
| Sector | Agriculture |
| Dividend Yield | 0.93% |
| Current Dividend per Share | 0.66 USD |
| Dividend History | 7 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
A consistent dividend history is a testament to a company's ability to generate ongoing cash flow. Corteva’s dividends have been paid without interruption for the past seven years.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 0.52 |
| 2024 | 0.66 |
| 2023 | 0.62 |
| 2022 | 0.58 |
| 2021 | 0.54 |
📈 Dividend Growth
Dividend growth is essential for evaluating future income potential. Corteva's record shows a 6.92% growth over three years and an impressive 20.48% over five years.
| 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, supporting potential long-term wealth accumulation for investors.
✅ Payout Ratio
Understanding payout ratios helps assess whether dividends are sustainable. Corteva's EPS-based payout ratio is 32.13%, and FCF-based payout ratio is 17.28%, both demonstrating ample coverage.
| Key Figure | Ratio |
|---|---|
| EPS-based | 32.13% |
| Free cash flow-based | 17.28% |
The low payout ratios indicate a strong possibility for continued payments and potential increases, highlighting sustainable dividend policies.
💸 Cashflow & Capital Efficiency
An insightful analysis of cash flow and capital efficiency can reveal the financial flexibility and operational resilience of a company.
| 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% | 66.37% | 30.62% |
Corteva’s cash flow metrics reflect considerable management efficiency in utilizing capital, enhancing future growth and stability potential.
⚖️ Balance Sheet & Leverage Analysis
Evaluating balance sheet health and leverage ratios is crucial for understanding financial risks and stability.
| Year | 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 | -14.73% | -6.11% | -69.06% |
| Current Ratio | 1.45 | 1.56 | 1.56 |
| Quick Ratio | 0.93 | 0.90 | 0.93 |
| Financial Leverage | 1.72 | 1.72 | 1.68 |
Corteva's conservative leverage ratios and strong liquidity positions underscore financial soundness, mitigating potential risks.
📈 Fundamental Strength & Profitability
Assessing fundamental strength and profitability involves scrutinizing various efficiency and profitability metrics.
| 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% |
| EBIT Margin | 8.92% | 7.70% | 8.62% |
| EBITDA Margin | 16.18% | 14.73% | 15.63% |
| Gross Margin | 43.64% | 42.41% | 40.21% |
| Research & Development to Revenue | 8.29% | 7.76% | 6.97% |
The steady profit margins and positive ROE highlight Corteva's robust core performance and ability to maintain a competitive edge.
📉 Price Development
🔍 Dividend Scoring System
| Criteria | Score | |
|---|---|---|
| Dividend Yield | 3/5 | |
| Dividend Stability | 4/5 | |
| Dividend Growth | 4/5 | |
| Payout Ratio | 5/5 | |
| Financial Stability | 5/5 | |
| Dividend Continuity | 5/5 | |
| Cashflow Coverage | 4/5 | |
| Balance Sheet Quality | 5/5 |
Overall Score: 35/40
🏆 Rating
Corteva, Inc. offers a compelling dividend profile with strong financial fundamentals and moderate growth prospects. The company demonstrates robust stability and efficient capital management, presenting it as a solid choice for long-term dividend-focused investors. Overall, Corteva holds a favorable position for income investors seeking a balance between yield and growth potential.