July 15, 2025 a 07:32 am
GPN: Dividend Analysis - Global Payments Inc.
Global Payments Inc. showcases a promising dividend profile with consistent payouts over 25 years, evidencing their commitment to shareholder returns. Recent dividend growth rates reflect a steady increase, paralleling their sector. With a robust market cap of approximately $19 billion, Global Payments Inc. stands out for its financial stability and strategic dividend distributions, making it a compelling consideration for dividend-focused investors.
📊 Overview
Global Payments Inc., operating within a competitive financial sector, offers a commendable dividend yield of 1.68%. The company's current dividend payment is $0.99 per share and boasts an impressive dividend history spanning 25 years without recent suspensions or cuts, demonstrating a robust financial health and dedication to rewarding shareholders.
| Metric | Details |
|---|---|
| Sector | Financial |
| Dividend yield | 1.68% |
| Current dividend per share | 0.99 USD |
| Dividend history | 25 years |
| Last cut or suspension | None |
📈 Dividend History
Global Payments Inc.'s dividend history is a testament to its financial stamina, with consistent payouts over the decades. This history not only reassures investors of steady income but also signifies corporate confidence in sustainable profitability.
| Year | Dividend per Share |
|---|---|
| 2025 | 0.50 |
| 2024 | 1.00 |
| 2023 | 1.00 |
| 2022 | 1.00 |
| 2021 | 0.89 |
⚡ Dividend Growth
Assessing the dividend growth over the past years provides insight into the company's ability to enhance shareholder returns through increased payouts. This growth trajectory suggests strategic reinvestments and efficient financial management.
| Time | Growth |
|---|---|
| 3 years | 3.96% |
| 5 years | 34.76% |
The average dividend growth is 34.76% over 5 years. This shows moderate but steady dividend growth.
💡 Payout Ratio
The payout ratio helps gauge the sustainability of the dividend by comparing it to company earnings. A healthy range indicates room for maneuvering for future payout increases without financial strain.
| Key figure ratio | Percentage |
|---|---|
| EPS-based | 15.66% |
| Free cash flow-based | 8.02% |
With an EPS payout ratio of 15.66% and an FCF payout ratio of 8.02%, Global Payments Inc. demonstrates a conservative payout approach, ensuring dividends are firmly supported by earnings, fostering room for growth and stability.
📋 Cashflow & Capital Efficiency
Evaluating cash flow and capital efficiency provides insights into the operational effectiveness and potential for sustainable financial performance. Key metrics, such as Free Cash Flow Yield and Earnings Yield, indicate robustness in cash generation, essential for dividend maintenance and growth.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 10.00% | 4.80% | 5.96% |
| Earnings Yield | 5.50% | 2.97% | 0.41% |
| CAPEX to Operating Cash Flow | 19.10% | 29.27% | 27.43% |
| Stock-based Compensation to Revenue | 1.63% | 2.16% | 1.82% |
| Free Cash Flow / Operating Cash Flow Ratio | 80.90% | 70.73% | 72.57% |
While the cash flow metrics over recent years indicate some volatility, particularly in CAPEX and stock-based compensation, the overall cash flow efficiency remains robust enough to cover dividends and operational needs effectively.
📉 Balance Sheet & Leverage Analysis
Understanding the balance sheet and leverage ratios is crucial for assessing financial resilience and debt management. High leverage may indicate greater risk, while optimal ratio levels suggest financial stability.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 75.47% | 75.55% | 64.05% |
| Debt-to-Assets | 35.86% | 34.36% | 31.88% |
| Debt-to-Capital | 43.01% | 43.04% | 39.04% |
| Net Debt to EBITDA | 3.24 | 4.24 | 5.06 |
| Current Ratio | 96.55% | 99.36% | 91.53% |
| Quick Ratio | 96.55% | 99.36% | 89.51% |
| Financial Leverage | 210.45% | 219.87% | 200.91% |
An observable decrease in the debt ratios over the years points towards enhanced financial management strategies. However, maintaining these trends will be key for ensuring stability amid evolving market conditions.
🏢 Fundamental Strength & Profitability
Fundamental analysis and profitability metrics such as Return on Equity and myriad margin analyses provide clarity on internal efficiencies and the ability to sustain or grow profit margins. Strong figures here underpin robustness in overall corporate health.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 7.05% | 4.29% | 0.50% |
| Return on Assets | 3.35% | 1.95% | 0.25% |
| Net Margin | 15.54% | 10.22% | 1.24% |
| EBIT Margin | 24.77% | 18.96% | 7.27% |
| EBITDA Margin | 43.56% | 37.36% | 27.05% |
| Gross Margin | 62.79% | 61.39% | 57.90% |
| R&D to Revenue | 0.00% | 0.00% | 0.00% |
Despite minor profitability fluctuations, the core efficiencies reflect a well-managed enterprise, capable of sustaining its operational scale. A focused strategy on improving these metrics could further affirm Global Payments Inc.'s credibility as a profitable venture.
📈 Price Development
It is essential to evaluate how price performance aligns with the underlying fundamentals and external market perceptions, potentially affecting investor sentiment.
🌟 Dividend Scoring System
| Category | Description | Score |
|---|---|---|
| Dividend yield | Yield at 1.68% | 3.5 |
| Dividend Stability | History of 25 years | 5 |
| Dividend growth | 5 yr growth at 34.76% | 4.5 |
| Payout ratio | EPS and FCF support | 4 |
| Financial stability | Strong balance sheet | 4 |
| Dividend continuity | No suspensions | 5 |
| Cashflow Coverage | Robust FCF | 4 |
| Balance Sheet Quality | Optimal ratios | 4 |
Total Score: 34/40
🔖 Rating
Global Payments Inc. presents itself as a financially stable entity with a robust dividend proposition. With a score of 34 out of 40, it appeals to dividend-focused investors due to its significant history, growth potential, and financial health. Investors may consider this stock as a reliable addition to their income portfolios, keeping long-term growth in mind.