February 01, 2026 a 07:46 am

ECL: Dividend Analysis - Ecolab Inc.

Overview 📊

Ecolab Inc., a leader in its sector, offers solid dividend yields and a history of stability. The company’s dividend profile is marked by consistency and resilience.

Detail	Value
Sector	Specialty Chemicals
Dividend yield	1.03 %
Current dividend per share	$2.34
Dividend history	41 years
Last cut or suspension	1987

Dividend History 🗣️

With dividends continually increasing for 41 years, Ecolab demonstrates reliability. Such consistency is crucial for attracting dividend-focused investors seeking steady income streams.

Year	Dividend Per Share (USD)
2025	$2.68
2024	$2.36
2023	$2.16
2022	$2.06
2021	$1.95

Dividend Growth 📈

Ecolab's moderate dividend growth over three and five years highlights its ability to increase shareholder value over time.

Time	Growth
3 years	9.17 %
5 years	7.23 %

The average dividend growth is 7.23 % over 5 years. This shows moderate but steady dividend growth.

Payout Ratio ⚠️

Payout ratios provide insights into the sustainability of dividend payments. Ecolab maintains a prudent payout ratio, balancing between rewarding shareholders and investing in growth.

Key figure	Ratio
EPS-based	33.38 %
Free cash flow-based	42.67 %

Ecolab’s payout ratio of 33.38% (EPS) and 42.67% (FCF) indicate significant room for reinvestment and a commitment to dividend stability.

Cashflow & Capital Efficiency 📊

Capital efficiency and cash flow insights reflect Ecolab's operational stability and potential for sustained dividend payments.

Metric	2024	2023	2022
Free Cash Flow Yield	2.73 %	2.90 %	2.59 %
Earnings Yield	3.17 %	2.43 %	2.63 %
CAPEX to Operating Cash Flow	35.34 %	32.13 %	39.86 %
Stock-based Compensation to Revenue	0.86 %	0.62 %	0.62 %
Free Cash Flow / Operating Cash Flow Ratio	64.66 %	67.87 %	60.14 %

The data confirm Ecolab's sound cash flow management and capital allocation, underpinning its ability to sustain and grow dividends.

Balance Sheet & Leverage Analysis 📉

A strong balance sheet underpins Ecolab’s operational stability and creditworthiness, which is essential for sustained dividend payouts.

Ratio	2024	2023	2022
Debt-to-Equity	0.95	1.09	1.25
Debt-to-Assets	0.37	0.40	0.42
Debt-to-Capital	0.49	0.52	0.56
Net Debt to EBITDA	1.83	2.58	3.31
Current Ratio	1.70	1.70	1.30
Quick Ratio	0.95	0.95	0.88
Financial Leverage	2.56	2.71	2.97

These metrics illustrate Ecolab's solid leverage position and liquidity, enhancing its long-term financial resilience.

Fundamental Strength & Profitability

Fundamental analysis confirms Ecolab's robust profitability and asset management capabilities, critical for ongoing dividend distributions.

Metric	2024	2023	2022
Return on Equity	24.12 %	17.06 %	15.09 %
Return on Assets	9.44 %	6.28 %	5.09 %
Margins: Net	13.42 %	8.96 %	7.69 %
EBIT	18.48 %	13.77 %	11.33 %
EBITDA	24.43 %	19.80 %	17.94 %
Gross	43.47 %	40.32 %	38.20 %
Research & Development to Revenue	1.32 %	1.25 %	1.34 %

Ecolab's strong financial metrics signal a commitment to innovation and value creation, securing consistent returns for stakeholders.

Price Development 📈

Dividend Scoring System ✅

Category	Description	Score	Scale
Dividend yield	Moderate yield with stable growth.	3
Dividend Stability	Continual increases over 4 decades.	5
Dividend growth	Modest but consistent increases.	4
Payout ratio	Sensible and sustainable levels.	4
Financial stability	Robust balance sheet and liquidity.	5
Dividend continuity	No cuts since 1987.	5
Cashflow Coverage	Efficient cashflow utilization.	4
Balance Sheet Quality	Strong leverage and asset management.	5

Rating 📈

Based on the comprehensive dividend analysis, Ecolab Inc. is rated as a solid choice for dividend investors seeking stability with moderate growth potential. The company’s financial discipline and focus on innovation reinforce its ability to sustain and enhance shareholder value.