December 17, 2025 a 07:46 am
IEX: Dividend Analysis - IDEX Corporation
IDEX Corporation demonstrates a strong commitment to returning value to shareholders through its dividends. With a sustained history of dividend payments and consistent growth, the company projects confidence regarding its financial health and the ability to generate robust free cash flow. However, investors should note the recent indication of a potential dividend cut in 2026.
📊 Overview
The company operates within a robust sector, evidenced by its substantial market cap and recent dividend strategies.
| Metric | Value |
|---|---|
| Sector | Industrial Machinery |
| Dividend Yield | 1.60% |
| Current Dividend Per Share | 2.71 USD |
| Dividend History | 32 years |
| Last Cut or Suspension | 2026 |
📈 Dividend History
The long history of dividends signifies the company's dedication to reward shareholders, establishing a reliable income stream over decades.
| Year | Dividend Per Share (USD) |
|---|---|
| 2026 | 0.71 |
| 2025 | 2.82 |
| 2024 | 2.71 |
| 2023 | 2.52 |
| 2022 | 2.34 |
📉 Dividend Growth
Steady dividend growth reflects IDEX's ability to improve shareholder value through increased payouts, despite recent challenges.
| 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 provides insights into the sustainability of dividends. A lower ratio is generally indicative of healthy dividend practices.
| Key figure | Ratio |
|---|---|
| EPS-based | 42.60% |
| Free cash flow-based | 35.04% |
Both EPS and Free Cash Flow payout ratios are well below 50%, highlighting a conservative approach that leaves room for future growth or unexpected downturns.
🗣️ Cashflow & Capital Efficiency
Cash flow analysis reveals the company's ability to fund operations and strategic initiatives without reliance on external financing.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 3.81% | 3.82% | 2.83% |
| Earnings Yield | 3.19% | 3.63% | 3.40% |
| CAPEX to Operating Cash Flow | 9.24% | 12.54% | 12.20% |
| Stock-based Compensation to Revenue | 0.79% | 0.67% | 0.67% |
| Free Cash Flow / Operating Cash Flow Ratio | 90.26% | 87.46% | 87.80% |
| Return on Invested Capital | 8.81% | 10.92% | 12.39% |
The cash flow metrics indicate robust efficiency with a high ratio of free cash flow relative to operating cash flow, supporting strategic reinvestment potential.
⚠️ Balance Sheet & Leverage Analysis
Examining leverage metrics helps assess financial risk and the ability to meet longer-term obligations.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 52.34% | 40.83% | 52.21% |
| Debt-to-Assets | 29.45% | 24.65% | 28.79% |
| Debt-to-Capital | 34.36% | 28.99% | 34.30% |
| Net Debt to EBITDA | 1.59 | 0.95 | 1.27 |
| Current Ratio | 2.53 | 2.89 | 2.57 |
| Quick Ratio | 1.85 | 2.05 | 1.71 |
| Financial Leverage | 1.78 | 1.66 | 1.81 |
With moderate leverage ratios and strong liquidity metrics like the quick ratio, the company's balance sheet reflects financial resilience.
📈 Fundamental Strength & Profitability
Profitability ratios and returns reflect how well the company uses shareholder investments to generate earnings.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 13.31% | 16.83% | 19.31% |
| Return on Assets | 7.49% | 10.16% | 10.65% |
| Net Margin | 15.45% | 18.21% | 18.44% |
| EBIT Margin | 20.92% | 24.81% | 24.83% |
| EBITDA Margin | 26.29% | 29.45% | 28.59% |
| Gross Margin | 46.40% | 49.57% | 50.11% |
| R&D to Revenue | 5.46% | 5.37% | 4.93% |
High Return on Equity and solid margins indicate efficient operations and effective cost management, reinforcing the firm's competitive edge.
✅ Price Development
📈 Dividend Scoring System
| Category | Score | Score Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 5 | |
| Financial stability | 5 | |
| Dividend continuity | 4 | |
| Cashflow Coverage | 5 | |
| Balance Sheet Quality | 4 |
Total Score: 35/40
🗣️ Rating
Overall, IDEX Corporation presents a strong case for dividend stability and conscious financial management, making it an attractive option for dividend-focused investors seeking reliability and growth potential. However, keep an eye on the future developments regarding their dividend strategies post-2026. The total dividend score of 35 out of 40 highlights its consistent performance but also the need to monitor for any strategic shifts.