June 18, 2025 a 07:46 am
DHR: Dividend Analysis - Danaher Corporation
Danaher Corporation exhibits a stable dividend profile with a rich history of consistent dividend payments spanning over three decades. An attractive feature for long-term investors seeking reliability, the DHR offers a modest dividend yield with a compelling growth trajectory, demonstrating a commitment to shareholder returns without placing undue strain on available financial resources. The company's calculated growth in dividends and reinvestment capabilities portrays a robust financial standing crucial for investor confidence.
Overview
The company operates in a sector that values consistent cash flows and resilient financial health, essential for sustaining its dividend history. Its modest dividend yield might deter yield-focused investors; however, the growth and stability offered compensate with the promise of upward potential in the share value.
| Detail | Value |
|---|---|
| Sector | Industrials |
| Dividend Yield | 0.60 % |
| Current Dividend per Share | 1.05 USD |
| Dividend History | 33 years |
| Last Cut or Suspension | None |
Dividend History
Danaher Corporation has maintained a commendable dividend payment history for 33 years without cuts, reflecting the organization's commitment to rewarding its investors steadily over time. This long-standing history is often taken as an indicator of the firm's capacity to generate and allocate profits efficiently.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 0.64 |
| 2024 | 1.08 |
| 2023 | 0.99 |
| 2022 | 0.89 |
| 2021 | 0.74 |
Dividend Growth
Robust dividend growth further underpins Danaher Corporation's position as a viable investment. It has achieved a steady increase in dividends over 3 and 5 years, marking its strategic financial planning and rewarding growth outlook.
| Time | Growth |
|---|---|
| 3 years | 13.19 % |
| 5 years | 12.37 % |
The average dividend growth is 12.37 % over 5 years. This shows moderate but steady dividend growth.
Payout Ratio
Danaher's current payout ratio reflects a financially healthy enterprise, emphasizing its prudent dividend policy. By maintaining a responsible payout policy, the company safeguards capital to fuel future innovation while continuing shareholder returns.
| Key Figure | Ratio |
|---|---|
| EPS-based | 19.99 % |
| Free cash flow-based | 15.34 % |
The payout ratios indicate a secure dividend payment strategy, with plenty of room for maintaining or increasing dividends in less favorable economic climates.
Cashflow & Capital Efficiency
A healthy free cash flow and sound capital efficiency contribute to Danaher's capability to support dividend payments while pursuing growth. These metrics underscore the flexibility in its financial operations.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Free Cash Flow Yield | 4.32% | 3.39% | 3.15% |
| Earnings Yield | 4.23% | 2.80% | 2.32% |
| CAPEX to Operating Cash Flow | 13.52% | 19.30% | 20.81% |
| Stock-based Compensation to Revenue | 0.94% | 1.28% | 1.21% |
| Free Cash Flow / Operating Cash Flow Ratio | 86.48% | 80.70% | 79.19% |
The company's operational structure maintains substantial FCF generation relative to its operational outflows, showcasing its adeptness at converting sales into cash returns.
Balance Sheet & Leverage Analysis
Analyzing Danaher's leverage ratios and liquidity provides insight into its financial health and resilience, crucial for sustaining dividends in economic downturns.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Debt-to-Equity | 0.39 | 0.37 | 0.32 |
| Debt-to-Assets | 0.23 | 0.23 | 0.21 |
| Debt-to-Capital | 0.28 | 0.27 | 0.24 |
| Net Debt to EBITDA | 1.41 | 1.82 | 1.91 |
| Current Ratio | 1.89 | 1.68 | 1.40 |
| Quick Ratio | 1.52 | 1.37 | 1.05 |
| Financial Leverage | 1.68 | 1.58 | 1.56 |
Danaher's balance sheet showcases a prudent leverage approach, balancing debt obligations against equity, favoring minimal risk exposure.
Fundamental Strength & Profitability
Profitability metrics and fundamental ratios reflect Danaher's efficiency in utilizing its resources, indicating robust operational execution and strategic planning.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Return on Equity | 14.39% | 8.91% | 7.87% |
| Return on Assets | 8.55% | 5.64% | 5.03% |
| Net Margin | 22.91% | 19.94% | 16.33% |
| EBIT Margin | 23.35% | 22.31% | 20.62% |
| EBITDA Margin | 30.86% | 31.39% | 30.48% |
| Gross Margin | 60.21% | 58.74% | 59.50% |
| Research & Development to Revenue | 5.54% | 6.29% | 6.63% |
These figures underscore the financial robustness of Danaher, which efficiently allocates capital to renew investments and sustain growth prospects.
Price Development
Dividend Scoring System
| Criteria | Score | Rating |
|---|---|---|
| Dividend yield | 2 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 5 | |
| Financial stability | 5 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 5 |
Overall Score: 35/40
Rating
Danaher Corporation demonstrates a credible mix of dividend growth and stability making it ideal for investor portfolios centered on durability and long-term growth potential. Despite a lower current yield, its historical consistency and strong growth metrics merit a favorable outlook.