June 29, 2026 a 07:31 am
GEN: Dividend Analysis - Gen Digital Inc.
Gen Digital Inc. presents a unique profile as a dividend stock. Despite a modest dividend yield of around 2.05%, the company's stability is evidenced by a sustained dividend history of 14 years. The recent lack of dividend growth reflects potential caution or reinvestment strategies. Investors should weigh the company's strong payout ratios against its historical growth trends.
📊 Overview
The analysis of Gen Digital Inc. reveals a combination of stable dividend payments and a capacity for consistent returns, supported by the sector's resilience.
| Factor | Details |
|---|---|
| Sector | Technology |
| Dividend Yield | 2.05 % |
| Current Dividend Per Share | 0.51 USD |
| Dividend History | 14 years |
| Last Cut or Suspension | None |
📈 Dividend History
Reviewing Gen Digital Inc.'s dividend history offers insight into its commitment to returning value to shareholders. This history reflects financial stability and investor confidence.
| Year | Dividend Per Share |
|---|---|
| 2026 | 0.25 |
| 2025 | 0.50 |
| 2024 | 0.50 |
| 2023 | 0.50 |
| 2022 | 0.50 |
📊 Dividend Growth
The growth of Gen Digital Inc.'s dividends over the recent 3- and 5-year periods reveals eras of transition, necessary for strategic realignment or reinvestment priorities.
| Time | Growth |
|---|---|
| 3 years | 0 % |
| 5 years | -0.47 % |
The average dividend growth is -0.47 % over 5 years. This shows moderate but steady dividend growth.
📉 Payout Ratio
The payout ratio offers an essential view of potential dividend sustainability, illustrating how much income Gen Digital Inc. distributes as dividends.
| Key figure | Ratio |
|---|---|
| EPS-based | 31.54 % |
| Free cash flow-based | 20.17 % |
The EPS payout ratio at 31.54 % along with a FCF payout ratio of 20.17 % exhibits a robust capacity to fulfill dividend obligations while retaining cash for internal uses.
🗣️ Cashflow & Capital Efficiency
A deep dive into cash flow dynamics underpins Gen Digital Inc.'s operational stability, focusing on its ability to generate surplus, enhance growth, and optimize capital allocation.
| Year | 2026 | 2025 | 2024 |
|---|---|---|---|
| Free Cash Flow Yield | 13.17% | 7.40% | 14.32% |
| Earnings Yield | 8.42% | 3.94% | 4.25% |
| CAPEX to Operating Cash Flow | 1.42% | 1.23% | 0.97% |
| Stock-based Compensation to Revenue | 4.74% | 3.41% | 3.63% |
| Free Cash Flow / Operating Cash Flow Ratio | 98.58% | 98.77% | 99.03% |
Despite fluctuations, Gen Digital Inc. maintains a balanced approach towards capital investments and shareholder returns, reflected in its stable cash flow metrics.
🗣️ Balance Sheet & Leverage Analysis
Complex leverage dynamics and liquidity ratios deliver insights into Gen Digital Inc.'s financial firmness and debt management strategies.
| Year | 2026 | 2025 | 2024 |
|---|---|---|---|
| Debt-to-Equity | 3.16 | 3.66 | 4.04 |
| Debt-to-Assets | 52.99% | 53.66% | 54.80% |
| Debt-to-Capital | 75.98% | 78.56% | 80.18% |
| Net Debt to EBITDA | 3.40 | 3.61 | 4.88 |
| Current Ratio | 0.40 | 0.51 | 0.50 |
| Quick Ratio | 0.40 | 0.51 | 0.50 |
| Financial Leverage | 5.97 | 6.83 | 7.38 |
High leverage ratios indicate potential risk, yet stable debt structures feat of the company's strategic balance to fund expansion and address liabilities.
🗣️ Fundamental Strength & Profitability
High-priority profitability ratios elucidate Gen Digital Inc.'s efficiency and ability to generate returns on equity while maximizing asset usage.
| Year | 2026 | 2025 | 2024 |
|---|---|---|---|
| Return on Equity | 37.27% | 28.34% | 28.36% |
| Return on Assets | 6.24% | 4.15% | 3.84% |
| Return on Invested Capital | 10.61% | 7.76% | 8.37% |
| Net Margin | 19.46% | 16.34% | 15.97% |
| EBIT Margin | 18.84% | 40.84% | 29.37% |
| EBITDA Margin | 28.70% | 51.49% | 42.13% |
| Gross Margin | 74.10% | 80.28% | 80.76% |
| Research & Development to Revenue | 8.18% | 8.36% | 8.74% |
Gen Digital Inc. is showing impressive return on equity and strong profit margins, indicating effective management and favorable market positioning.
📈 Price Development
✅ Dividend Scoring System
| Criteria | Score (1-5) | Score Bar |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 4 | |
| Dividend Growth | 2 | |
| Payout Ratio | 4 | |
| Financial Stability | 3 | |
| Dividend Continuity | 4 | |
| Cashflow Coverage | 5 | |
| Balance Sheet Quality | 3 |
Overall Score: 28/40
🌟 Rating
Overall, Gen Digital Inc. presents a solid investment opportunity for dividend-seeking investors, with strong cash flow coverage offsetting modest growth in dividends and high leverage. Its dividend consistency and financial stability present a balanced opportunity for conservative long-term investors.
Smart Data Insight
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