July 08, 2026 a 03:31 pm
DHR: Dividend Analysis - Danaher Corporation
Danaher Corporation, with a long-standing dividend history, presents a compelling dividend profile for income-focused investors. Boasting over three decades of consistent dividend payments, Danaher has never cut or suspended its dividends, showcasing a robust commitment to shareholder returns. Despite a relatively modest dividend yield, the company's ability to sustain and grow its dividends historically underscores its financial stability and operational resilience.
📊 Overview
The following overview provides an insight into Danaher's dividend yield within the sector and its past performance, essential for gauging future income potential.
| Category | Data |
|---|---|
| Sector | Healthcare |
| Dividend Yield | 0.73% |
| Current Dividend per Share | 1.24 USD |
| Dividend History | 34 years |
| Last Cut or Suspension | None |
📈 Dividend History
Danaher’s historical performance in dividend distribution is critical for understanding its commitment to shareholder returns.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 0.8 |
| 2025 | 1.28 |
| 2024 | 1.08 |
| 2023 | 0.99 |
| 2022 | 0.89 |
📈 Dividend Growth
Understanding the growth trajectory of Danaher's dividends over multiple timelines is essential to predicting future stability.
| Time | Growth |
|---|---|
| 3 years | 13.02% |
| 5 years | 14.93% |
The average dividend growth is 14.93% over 5 years. This demonstrates moderate but steady dividend growth.
✅ Payout Ratio
The payout ratio reveals the proportion of earnings distributed as dividends, signaling the sustainability of dividend payments.
| Key Figure | Ratio |
|---|---|
| EPS-based | 23.82% |
| Free cash flow-based | 16.61% |
The EPS-based payout ratio of 23.82% indicates a conservative approach, ensuring dividends are comfortably covered by earnings. Meanwhile, a 16.61% payout based on free cash flow suggests ample room for reinvestment in growth.
Cashflow & Capital Efficiency
Evaluating Danaher's ability to generate free cash flow and efficiently allocate capital is paramount for assessing its investment potential.
| 2025 | 2024 | 2023 | |
|---|---|---|---|
| Free Cash Flow Yield | 3.25% | 3.16% | 3.39% |
| Earnings Yield | 2.23% | 2.32% | 2.80% |
| CAPEX to Operating Cash Flow | 17.83% | 20.81% | 19.30% |
| Stock-based Compensation to Revenue | 1.21% | 1.21% | 1.28% |
| Free Cash Flow / Operating Cash Flow Ratio | 81.98% | 79.19% | 80.70% |
The ability to maintain a solid free cash flow yield while efficiently managing capital expenditures reflects Danaher's capability to reinvest in operations and sustain growth over time.
Balance Sheet & Leverage Analysis
An analysis of financial ratios is essential for evaluating Danaher's debt management and liquidity standing.
| 2025 | 2024 | 2023 | |
|---|---|---|---|
| Debt-to-Equity | 0.35 | 0.35 | 0.37 |
| Debt-to-Assets | 0.22 | 0.22 | 0.23 |
| Debt-to-Capital | 0.26 | 0.26 | 0.27 |
| Net Debt to EBITDA | 1.99 | 2.07 | 1.82 |
| Current Ratio | 0 | 1.40 | 1.68 |
| Quick Ratio | 1.51 | 1.05 | 1.37 |
| Financial Leverage | 1.59 | 1.57 | 1.58 |
Danaher's moderate leverage ratios and robust liquidity positions indicate prudent debt management, supporting financial stability and operational flexibility in future initiatives.
Fundamental Strength & Profitability
Danaher's profitability metrics reveal its ability to generate returns on investments and maintain strong operating margins.
| 2025 | 2024 | 2023 | |
|---|---|---|---|
| Return on Equity | 6.88% | 7.87% | 8.91% |
| Return on Assets | 4.33% | 5.03% | 5.64% |
| Margins: Net | 14.71% | 16.33% | 19.94% |
| EBIT Margin | 18.31% | 20.62% | 22.32% |
| EBITDA Margin | 28.27% | 30.48% | 31.39% |
| Gross Margin | 60.93% | 59.50% | 58.74% |
| Research & Development to Revenue | 6.50% | 6.63% | 6.29% |
Superior return metrics and strong margins are indicative of Danaher's capability to innovate and deliver consistent shareholder value.
📉 Price Development
📊 Dividend Scoring System
| Criteria | Score | Visual |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 4 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 33/40
🗣️ Rating
In summary, Danaher Corporation is a reliable dividend investment, offering stable growth and robust financial health. The consistent historical performance of dividends and sound financial metrics make it a worthwhile consideration for conservative, income-focused investors.
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