November 30, 2025 a 07:31 am
DHR: Dividend Analysis - Danaher Corporation
Danaher Corporation stands out as a solid investment option in the dividend growth arena. With a consistent dividend history and sound financial health, it offers investors opportunities for steady income. However, careful consideration of its relatively low yield is warranted, making it more appealing to investors seeking long-term growth rather than immediate income. The company's robust payout ratios and growth metrics position it as a reliable choice for dividend-focused portfolios.
📊 Overview
Danaher Corporation operates within the healthcare and life sciences sector, offering a steady but modest dividend yield. Investors are attracted to its remarkable 33-year dividend history without significant interruptions.
| Aspect | Details |
|---|---|
| Sector | Healthcare |
| Dividend Yield | 0.67% |
| Current Dividend Per Share | $1.05 |
| Dividend History | 33 years |
| Last Cut or Suspension | None |
📉 Dividend History
Danaher's long history of steady dividend growth reflects its commitment to returning value to shareholders. Its dividend policy underscores stability, a significant factor for income investors.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 0.96 |
| 2024 | 1.08 |
| 2023 | 0.98872 |
| 2022 | 0.88652 |
| 2021 | 0.74468 |
📈 Dividend Growth
With a 5-year growth rate of 12.37%, Danaher's dividends have seen consistent increases, reflecting resilient financial performance and strategic capital allocation. This growth provides reassurance of the company's forward momentum.
| 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
Analyzing the payout ratios, Danaher maintains a disciplined approach, allowing for sustainable dividend payments. The EPS-based payout ratio stands competitively at 21.32%, offering reassurance of coverage from earnings.
| Key Figure | Ratio |
|---|---|
| EPS-based | 21.32% |
| Free Cash Flow-based | 15.00% |
These metrics suggest that Danaher is maintaining a sustainable balance between earnings, cash flow, and dividends, reinforcing confidence in its ability to uphold future payouts.
✅ Cashflow & Capital Efficiency
Danaher demonstrates strong operational cash flow management, crucial for ongoing dividend payments. Its capital efficiency metrics highlight prudent investment in growth, with strategic CAPEX allocations.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 3.16% | 3.39% | 4.32% |
| Earnings Yield | 2.32% | 2.80% | 4.23% |
| CAPEX to Operating Cash Flow | 20.59% | 19.30% | 13.52% |
| Stock-based Compensation to Revenue | 1.21% | 1.28% | 1.11% |
| Free Cash Flow / Operating Cash Flow Ratio | 79.19% | 80.70% | 86.48% |
Danaher's cash flow stability ensures robust capital returns, with a notable return on invested capital reflecting strategic investments yielding efficient returns.
⚠️ Balance Sheet & Leverage Analysis
Danaher's leverage ratios illustrate a prudent debt management strategy, with the debt-to-equity and solvency ratios indicating manageable risk levels.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 34.61% | 36.53% | 41.16% |
| Debt-to-Assets | 22.11% | 23.12% | 24.44% |
| Debt-to-Capital | 25.71% | 26.75% | 29.16% |
| Net Debt to EBITDA | 2.07 | 1.82 | 1.54 |
| Current Ratio | 1.40 | 1.68 | 1.89 |
| Quick Ratio | 1.05 | 1.37 | 1.56 |
| Financial Leverage | 1.57 | 1.58 | 1.68 |
These figures reflect Danaher's substantial capacity to manage obligations and optimize capital structure, ensuring liquidity amidst expansion initiatives.
🍀 Fundamental Strength & Profitability
Danaher's financial health is strong, underscoring robust profitability and operational efficiency. Observing margins, the company’s efficiency in generating profit is notable.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 7.87% | 8.91% | 14.39% |
| Return on Assets | 5.03% | 5.64% | 8.55% |
| Return on Invested Capital | 6.09% | 5.66% | 8.70% |
| Net Margin | 16.33% | 19.94% | 27.06% |
| EBIT Margin | 20.62% | 22.32% | 27.60% |
| EBITDA Margin | 30.48% | 31.39% | 35.60% |
| Gross Margin | 59.50% | 58.74% | 60.76% |
| R&D to Revenue | 6.63% | 6.29% | 5.74% |
High return measures indicate efficient resource allocation, translating to impressive shareholder returns. The company's focus on innovation is further highlighted by consistent R&D spending.
📉 Price Development
✅ Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend Yield | 2 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 5 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 33/40
🗣️ Rating
Danaher Corporation is rated as a reliable choice for long-term dividend investors, with strong stability and encouraging growth trajectories characterizing its financial strategy. While its dividend yield might not appeal to income-seeking investors, the company's robust fundamentals and disciplined financial management suggest sustained profitability, making it a worthwhile addition for dividend growth portfolios.