November 29, 2025 a 07:46 am
FIS: Dividend Analysis - Fidelity National Information Services, Inc.
Fidelity National Information Services, Inc. has a longstanding history of dividend payments over the past 23 years. Despite some recent challenges, particularly the dividend cut or suspension in 2024, the company maintains a moderate dividend yield of 2.43%. Investors may find appeal in the company's resilience and long-term dividend offerings.
📊 Overview
Fidelity National Information Services operates in the information technology sector, offering a compelling 2.43% dividend yield. With a $1.45 current dividend per share and a consistent 23-year dividend history, investors gain confidence in the firm's dedication. However, the 2024 dividend cut indicates potential caution for future payouts.
| Metric | Value |
|---|---|
| Sector | Information Technology |
| Dividend yield | 2.43% |
| Current dividend per share | $1.45 |
| Dividend history | 23 years |
| Last cut or suspension | 2024 |
🗣️ Dividend History
The dividend history of Fidelity National Information Services underscores its stability and reliability over the years, crucial for investors seeking predictable returns. Notably, the dividends have shown resilience amidst market fluctuations, although a suspension in recent times could raise concerns about immediate financial health.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 1.60 |
| 2024 | 1.44 |
| 2023 | 2.08 |
| 2022 | 1.88 |
| 2021 | 1.56 |
📈 Dividend Growth
Analyzing the dividend growth of Fidelity National Information Services reveals a mixed outlook. The last 3 years showed a slight contraction at -2.63%, whereas the 5-year growth is at a marginal increase of 0.57%. This indicates a period of adjustment for the company.
| 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 dividend sustainability of Fidelity National Information Services. The current strained EPS payout ratio of 499.67% suggests dividends are paid from sources other than current earnings, whereas the FCF payout ratio of 44.38% remains within a comfortable range.
| Key figure ratio | Value |
|---|---|
| EPS-based | 499.67% |
| Free cash flow-based | 44.38% |
The extremely high EPS-based payout ratio indicates an unsustainable dividend if relying solely on earnings. However, with a lower FCF-based payout ratio, dividends seem more secure short-term but depend on ongoing cash flow strength.
✅ Cashflow & Capital Efficiency
Examining cash flow and capital efficiency highlights Fidelity National Information Services' ability to generate cash relative to its investment in operating capital. This is an important measure of long-term dividend stability and corporate health.
| Metric | Latest | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 4.96% | 11.89% | 8.96% |
| Earnings Yield | 0.44% | -18.75% | -40.80% |
| CAPEX to Operating Cash Flow | 8.31% | 2.65% | 6.80% |
| Stock-based Compensation to Revenue | 1.69% | 1.22% | 1.94% |
| Free Cash Flow / Operating Cash Flow Ratio | 95.32% | 97.35% | 93.20% |
The company's consistent FCF and cash ratios highlight efficient capital utilization, ensuring dividend payments are backed by sustainable cash flows. Caution is needed on declining earnings yield.
⚠️ Balance Sheet & Leverage Analysis
The balance sheet analysis reveals the company's leverage and financial condition, critical for determining how much risk is associated with its capital structure.
| Metric | Latest | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.74 | 1.02 | 0.75 |
| Debt-to-Assets | 0.34 | 0.35 | 0.32 |
| Debt-to-Capital | 0.42 | 0.50 | 0.43 |
| Net Debt to EBITDA | 3.62 | 6.51 | 6.94 |
| Current Ratio | 0.53 | — | — |
| Quick Ratio | 0.85 | 0.75 | 0.79 |
| Financial Leverage | 2.15 | 2.89 | 2.32 |
Improving debt metrics, particularly a lower net debt to EBITDA ratio, signal positive trends. However, a low current ratio indicates liquidity constraints which need careful monitoring.
📈 Fundamental Strength & Profitability
The fundamental and profitability metrics provide a snapshot of the company's operational success and its ability to generate profit from its equity and assets.
| Metric | Latest | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 0.01% | -34.93% | -61.43% |
| Return on Assets | 0.46% | -12.11% | -26.42% |
| Margins: Net | — | -67.69% | -172.03% |
| EBIT | — | 13.99% | 12.75% |
| EBITDA | — | 29.55% | 29.58% |
| Gross | — | 37.19% | 36.04% |
The company's return metrics have suffered greatly in recent years with a slight improvement in EBIT margins indicating potential recovery. Continued focus on operational efficiency is paramount.
📊 Price Development
✅ Dividend Scoring System
| Category | Score | Band |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 2 | |
| Dividend growth | 2 | |
| Payout ratio | 3 | |
| Financial stability | 3 | |
| Dividend continuity | 3 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 3 |
Overall Score: 23/40
🗣️ Rating
Despite some challenges, Fidelity National Information Services, Inc. maintains an overall solid dividend profile. Investors should consider the recent volatility in earnings and cautious liquidity positions when evaluating future investment potential. The company offers a moderate dividend yield with a focus on sustainable cash flows, making it a cautiously optimistic choice for income-focused investors.