July 28, 2025 a 02:46 am
IEX: Dividend Analysis - IDEX Corporation
IDEX Corporation has consistently demonstrated a robust dividend profile with sustainable payout ratios and a strong history of dividend growth. Its market cap positions it well to maintain these distributions, and the overall financial health suggests a stable outlook for future payouts. Investors seeking steady income may find IDEX a suitable addition to their portfolio.
Overview
IDEX's consistent dividend yield and growth history are remarkable. The company's sector positioning further solidifies its capability to distribute dividends regularly without significant cuts.
| Metric | Value |
|---|---|
| Sector | Industrial Products |
| Dividend Yield | 1.54 % |
| Current Dividend Per Share | 2.71 USD |
| Dividend History | 31 years |
| Last Cut or Suspension | None |
Dividend History
The sustained dividend history showcases IDEX's commitment to returning value to shareholders. A reliable dividend history is a strong indicator of the company's operational profitability and shareholder focus.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 2.11 |
| 2024 | 2.71 |
| 2023 | 2.52 |
| 2022 | 2.34 |
| 2021 | 2.12 |
Dividend Growth
Understanding dividend growth allows investors to gauge a company’s commitment to increasing shareholder value over time. A stable growth rate reflects operational consistency and financial health.
| Time | Growth |
|---|---|
| 3 years | 8.53 % |
| 5 years | 7.02 % |
The average dividend growth is 7.02 % over 5 years. This shows moderate but steady dividend growth.
Payout Ratio
The payout ratio gives insight into how much profit the company returns to shareholders and how much is retained for other uses. It’s crucial for understanding sustainability and future payout possibilities.
| Type | Ratio |
|---|---|
| EPS-based | 42.85 % |
| Free Cash Flow-based | 36.73 % |
The EPS payout ratio of 42.85 % and FCF payout ratio of 36.73 % reflect a balanced approach, allowing space for reinvestment alongside steady dividends.
Cashflow & Capital Efficiency
Assessing cashflow and capital efficiency metrics is essential for evaluating a company’s operational liquidity and its ability to sustain and grow dividend payments.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 3.81% | 3.82% | 2.83% |
| Earnings Yield | 3.19% | 3.63% | 3.39% |
| CAPEX to Operating Cash Flow | 9.74% | 12.54% | 12.20% |
| Stock-based Compensation to Revenue | 0.79% | 0.67% | 0.68% |
| Free Cash Flow / Operating Cash Flow Ratio | 90.26% | 87.46% | 87.80% |
Consistent cash flow generation and efficient capital management underpin the plausibility of continued dividend distribution and expansion of shareholder wealth.
Balance Sheet & Leverage Analysis
The leverage ratios help evaluate financial stability, while liquidity ratios assess short-term fiscal health. These are crucial for maintaining dividend stability under fluctuating market conditions.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.52 | 0.41 | 0.49 |
| Debt-to-Assets | 0.29 | 0.25 | 0.27 |
| Debt-to-Capital | 0.34 | 0.29 | 0.33 |
| Net Debt to EBITDA | 1.56 | 0.95 | 1.17 |
| Current Ratio | N/A | 2.89 | 2.57 |
| Quick Ratio | 1.85 | 2.05 | 1.71 |
| Financial Leverage | 1.78 | 1.66 | 1.81 |
Maintaining a conservative leverage profile, IDEX demonstrates prudent financial management, ensuring the security of dividend payouts even during economic downturns.
Fundamental Strength & Profitability
Profit metrics such as ROI and profit margins provide insight into operational efficiency. These indicators are vital for understanding the sustainable capacity for dividend payouts.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 13.31% | 16.83% | 19.31% |
| Return on Assets | 7.49% | 10.16% | 10.65% |
| Margins: Net | 15.45% | 18.21% | 18.44% |
| EBIT | 20.92% | 24.80% | 24.83% |
| EBITDA | 26.29% | 29.45% | 28.59% |
| Gross | 44.21% | 44.24% | 44.84% |
| R&D to Revenue | 0% | 0% | 4.93% |
IDEX's profitability and fundamental strength signify robust operational efficiency, supporting a sustained dividend growth trajectory.
Dividend Scoring System
| Criteria | Score | Progress |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 4 | |
| Financial Stability | 5 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 5 |
Overall Score: 35/40
Rating
IDEX Corporation's dividend profile is characterized by exceptional stability and reasonable growth. The firm maintains a strategic balance between reinvestment and shareholder returns, appealing to income-focused investors seeking reliable and mildly growing dividends. Overall, IDEX holds a robust position as a sustainable dividend payer in the industrial products sector.