March 17, 2026 a 03:31 am
EFX: Dividend Analysis - Equifax Inc.
Equifax Inc. exhibits a strong dividend profile with over four decades of uninterrupted dividend history, showcasing a stable and reliable cash distribution policy. Despite a modest dividend yield, the company's consistent growth over the years compensates with a steady financial outlook. The history of consistent payouts and robust financials suggests a well-managed dividend strategy that ensures shareholder value.
📊 Overview
Equifax Inc. operates within the Information Services sector. The current dividend yield stands at a modest 1.01%, accompanied by a stable dividend per share of $1.89. Notably, Equifax has maintained a staggering 42 years of continuous dividend payments, signifying no cuts or suspensions, underlining the firm's commitment to rewarding its investors consistently.
| Sector | Dividend Yield | Current Dividend Per Share | Dividend History | Last Cut or Suspension |
|---|---|---|---|---|
| Information Services | 1.01% | 1.89 USD | 42 years | None |
📈 Dividend History
Equifax's dividend history is a testament to its financial resilience and commitment to investor returns. A history of uninterrupted dividends for 42 years highlights financial health and robust cash flow management, critical for instilling investor confidence. This track record is a strong indicator of potential future returns through dividends.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 0.56 |
| 2025 | 1.89 |
| 2024 | 1.56 |
| 2023 | 1.56 |
| 2022 | 1.56 |
📉 Dividend Growth
Analyzing Equifax's dividend growth offers insights into long-term payout sustainability. Despite the modest increase, stable growth enhances investor confidence, demonstrating management's focus on rewarding shareholders.
| Time | Growth |
|---|---|
| 3 years | 6.61% |
| 5 years | 3.91% |
The average dividend growth is 3.91% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
The payout ratio is a crucial indicator of dividend sustainability. Equifax reports an EPS-based payout ratio of 34.74% and a free cash flow-based payout ratio of 20.39%, both indicative of a conservative approach to maintaining dividends within safe limits, ensuring they remain sustainable during challenging periods.
| Key figure | Ratio |
|---|---|
| EPS-based | 34.74% |
| Free cash flow-based | 20.39% |
The EPS payout ratio of 34.74% and FCF payout ratio of 20.39% suggest a well-balanced approach, leaving room for growth and stability.
💰 Cashflow & Capital Efficiency
Equifax's cash flow and capital efficiency metrics illustrate robust operational performance. Key indicators such as free cash flow yield and earnings yield offer insight into the company's ability to generate and manage cash, essential for sustaining dividends and capital investments.
| 2023 | 2024 | 2025 | |
|---|---|---|---|
| Free Cash Flow Yield | 1.70% | 2.58% | 4.24% |
| Earnings Yield | 1.79% | 1.91% | 2.47% |
| CAPEX to Operating Cash Flow | 53.84% | 38.62% | 29.80% |
| Stock-based Compensation to Revenue | 1.36% | 1.44% | 1.29% |
| Free Cash Flow / Operating Cash Flow Ratio | 46.15% | 61.38% | 70.20% |
These metrics highlight a strategic focus on efficient capital allocation and strong cash flow management, supporting long-term dividend sustainability.
⚠️ Balance Sheet & Leverage Analysis
Equifax's balance sheet and leverage metrics are critical for assessing financial resilience. Ratios such as debt-to-equity and net debt to EBITDA are pivotal in evaluating the company's debt burden and its ability to manage leverage effectively.
| 2023 | 2024 | 2025 | |
|---|---|---|---|
| Debt-to-Equity | 125.96% | 104.45% | 110.62% |
| Debt-to-Assets | 46.51% | 42.61% | 42.93% |
| Debt-to-Capital | 55.74% | 51.09% | 52.52% |
| Net Debt to EBITDA | 3.48x | 2.81x | 2.69x |
| Current Ratio | 0.67 | 0.75 | 0.60 |
| Quick Ratio | 0.67 | 0.75 | 0.60 |
| Financial Leverage | 2.71 | 2.45 | 2.58 |
These figures demonstrate solid financial stability with manageable leverage levels, reassuring investors of Equifax's ability to meet its obligations.
✅ Fundamental Strength & Profitability
The company's profitability and fundamental strength are instrumental in sustaining dividends. Return on equity and asset sheets depict how effectively the firm converts investments into earnings, maintaining healthy margins that assure stakeholders.
| 2023 | 2024 | 2025 | |
|---|---|---|---|
| Return on Equity | 12.03% | 12.59% | 14.34% |
| Return on Assets | 4.44% | 5.14% | 5.57% |
| Net Margin | 10.36% | 10.63% | 10.87% |
| EBIT Margin | 18.22% | 18.30% | 18.23% |
| EBITDA Margin | 29.99% | 30.27% | 30.07% |
| Gross Margin | 55.65% | 55.67% | 44.60% |
| Research & Development to Revenue | 0% | 0% | 0% |
Equifax's robust profit margins and effective translation of equity and assets into profits indicate healthy operational and strategic strength, supporting ongoing growth and shareholder returns.
🗣️ Price Development
📊 Dividend Scoring System
| Criteria | Score (Out of 5) | Score Bar |
|---|---|---|
| Dividend yield | 2 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout Ratio | 4 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 4 |
Total Score: 30/40
⚠️ Rating
Equifax Inc.'s dividend profile earns a strong rating due to its unwavering dividend history, solid financial metrics, and commitment to shareholder returns. Though the dividend yield is moderate, the firm's stability and growth potential make it an attractive investment for income-focused investors. We recommend holding Equifax shares for long-term value and income generation.