August 16, 2025 a 12:47 pm
GE: Dividend Analysis - GE Aerospace
GE Aerospace has a solid dividend track record with minor fluctuations. With a market capitalization of approximately $284 billion, its financial fundamentals are crucial for sustaining future dividend payouts. The current dividend yield stands at a modest 0.51%, reflecting a relatively safe payout ratio and steady increase in dividends over recent years.
📊 Overview
GE Aerospace operates within a complex aerospace sector, with a profound history of dividend payments spanning 37 years. Despite a conservative dividend yield of 0.51%, it ensures consistent dividends with its robust earnings.
| Key Data | Value |
|---|---|
| Sector | Aerospace |
| Dividend yield | 0.51% |
| Current dividend per share | 0.93 USD |
| Dividend history | 37 years |
| Last cut or suspension | None |
📈 Dividend History
GE's commitment to dividends is evident from its extensive history. The stable dividend regime fosters investor confidence, particularly appealing in volatile market conditions.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 0.72 |
| 2024 | 1.12 |
| 2023 | 0.26 |
| 2022 | 0.20 |
| 2021 | 0.20 |
📈 Dividend Growth
The company's dividend growth reflects its long-term profitability and vision to enhance shareholder value.
| Time | Growth |
|---|---|
| 3 years | 0.78% |
| 5 years | 0.41% |
The average dividend growth is 0.41% over 5 years. This shows moderate but steady dividend growth.
🗣️ Payout Ratio
A sustainable payout ratio reassures that the company can maintain its dividend without financial strain.
| Key Figure | Ratio |
|---|---|
| EPS-based | 12.78% |
| Free cash flow-based | 17.94% |
The EPS and FCF payout ratios of 12.78% and 17.94% respectively indicate a conservative payout strategy, leaving room for growth or reinvestment.
💰 Cashflow & Capital Efficiency
Assessing cash flow and capital allocation provides insight into operational efficiency and potential for future growth.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Free Cash Flow Yield | 8.30% | 3.23% | 2.03% |
| Earnings Yield | 0.59% | 8.55% | 3.62% |
| CAPEX/Ops. Cash Flow | 19.84% | 30.80% | 21.91% |
| Stock Comp./Revenue | 0.90% | 1.02% | 0.85% |
| FCF/OCF Ratio | 80.16% | 69.20% | 78.09% |
GE Aerospace shows robust cash flow stability with strategic capital expenditure, ensuring long-term capital efficiency.
📊 Balance Sheet & Leverage Analysis
An analysis of leverage ratios illustrates the company’s financial health and its ability to manage existing debt.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Debt-to-Equity | 0.78 | 0.79 | 1.05 |
| Debt-to-Assets | 13.85% | 12.36% | 16.20% |
| Debt-to-Capital | 43.69% | 44.27% | 51.30% |
| Net Debt/EBITDA | 2.56 | 0.52 | 0.69 |
| Current Ratio | 1.18 | 1.33 | 1.09 |
| Quick Ratio | 0.88 | 1.07 | 0.81 |
| Fin. Leverage | 5.60 | 6.43 | 6.50 |
The leverage ratios reflect a well-balanced financial structure, providing secure operations with ample debt service capacity.
🏆 Fundamental Strength & Profitability
Analyzing profitability metrics gives a comprehensive sense of the firm's efficiency and market competitiveness.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Return on Equity | 0.99% | 34.60% | 33.90% |
| Return on Assets | 0.18% | 5.38% | 5.21% |
| Return on Inv. Capital | 2.23% | 2.93% | 6.31% |
| Margins: Net Profit | 1.15% | 26.82% | 16.94% |
| EBITDA Margin | 13.88% | 35.78% | 25.30% |
| R&D/Revenue | 2.77% | 2.86% | 3.32% |
GE’s high return figures in recent years are indicative of strong profitability and operational excellence.
📉 Price Development
✅ Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend yield | 2 | |
| Dividend Stability | 4 | |
| Dividend growth | 3 | |
| Payout ratio | 4 | |
| Financial stability | 5 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 4 |
Total Score: 30/40
🗣️ Rating
GE Aerospace exhibits a solid dividend profile and reliable financial metrics, meriting a "Buy" rating for investors seeking stability and moderate growth. Its strong cash flow and conservative payout ratio ensure sustainable dividends and potential for future increases.