July 31, 2025 a 03:31 pm
FIS: Dividend Analysis - Fidelity National Information Services, Inc.
Fidelity National Information Services, Inc. (FIS) is a key player in the financial technology sector, known for its comprehensive suite of services that aid financial institutions globally. Current market conditions highlight a promising yet cautious outlook for FIS dividends. The company boasts a solid dividend history despite facing recent challenges. Investors may be drawn to its resilience and steady yield, but should weigh this against recent dips in growth.
📊 Overview
The overall health of FIS can be seen through its stable position in the Financial Technology sector. The company sustains a moderate dividend yield and a strong history of payments, reflecting its commitment to shareholders.
| Metric | Value |
|---|---|
| Sector | Financial Technology |
| Dividend Yield | 1.87 % |
| Current Dividend per Share | 1.45 USD |
| Dividend History | 23 years |
| Last Cut or Suspension | None |
📈 Dividend History
FIS has demonstrated a strong track record with a stable dividend history over 23 years, offering investors confidence in dividend consistency. Despite challenges, the absence of interruptions in the dividend schedule underscores its solid management.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 0.80 |
| 2024 | 1.44 |
| 2023 | 2.08 |
| 2022 | 1.88 |
| 2021 | 1.56 |
📉 Dividend Growth
The growth prospects for FIS dividends are tempered, reflecting challenges over the recent term where negative growth was observed. This downturn hints at strategic adjustments and potential positive outlooks as market conditions stabilize.
| Time | Growth |
|---|---|
| 3 years | -2.63 % |
| 5 years | 0.57 % |
The average dividend growth is 0.57 % over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
The payout ratios provide insights into the sustainability of the dividend payout strategy. An EPS-based payout ratio of 92.59 % suggests a strained dividend policy, with FCF-based ratio at 48.17 % indicating better sustainability when compared to earnings.
| Key Figure | Ratio |
|---|---|
| EPS-based | 92.59 % |
| Free Cash Flow-based | 48.17 % |
The payout ratio illustrates a high dependency on earnings to support dividends, highlighting potential vulnerabilities if profits are challenged.
⚠️ Cashflow & Capital Efficiency
Analyzing cash flows reveals the company’s capacity to sustain dividends through internal cash generation. Free cash flow yield and capital efficiency are critical for assessing FIS's financial robustness.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 3.04 % | 9.05 % | 6.22 % |
| Earnings Yield | 3.25 % | -18.74 % | -40.80 % |
The cash flow indicators demonstrate variability. Yet, with prudent capital application, FIS reflects strong potential for improved capital efficiency.
🗣️ Balance Sheet & Leverage Analysis
Balance sheet metrics reveal FIS's financial positioning, emphasizing leverage and liquidity. Examinations of debt ratios help evaluate financial stability.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.74 | 1.01 | 0.75 |
| Net Debt to EBITDA | 3.16 | 6.50 | 6.94 |
FIS’s debt management illustrates a focused attempt in reducing leverage, yet the levels remain a potential risk needing continued monitoring.
🧮 Fundamental Strength & Profitability
Profitability metrics evaluate how efficiently FIS is generating returns. These ratios form the backbone of assessing performance resilience under various market conditions.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 9.24 % | -34.85 % | -61.43 % |
| Net Profit Margin | 14.32 % | -67.75 % | -172.03 % |
These metrics indicate a strong recovery from past downturns, guiding towards a potential positive shift in overall firm profitability.
📊 Price Development
🔍 Dividend Scoring System
| Category | Description | Score |
|---|---|---|
| Dividend Yield | Reflects income potential | |
| Dividend Stability | Consistency over time | |
| Dividend Growth | Growth trajectory | |
| Payout Ratio | Sustainability of payouts | |
| Financial Stability | Debt management | |
| Dividend Continuity | Regularity in dividends | |
| Cashflow Coverage | Ability to cover payouts | |
| Balance Sheet Quality | Strength of financials |
Overall Score: 28/40
✅ Rating
Fidelity National Information Services, Inc. (FIS) reflects a mixed yet stabilizing dividend profile. While historical payout consistency is notable, growth figures underscore the necessity for caution. Investors may find value in the continuity and potential for improved metrics given strategic financial management amid prevailing challenges. An investment in FIS warrants a balanced consideration of both the rewards and risks embedded within its current financial landscape.