June 08, 2025 a 07:30 am
INTU: Dividend Analysis - Intuit Inc.
Intuit Inc., a stalwart in the financial technology sector, showcases a robust dividend profile underscored by its stability and consistent growth. Offering a dividend yield of 0.54%, Intuit remains a reliable option for investors seeking long-term income assurance. Despite a relatively low yield, the company's sustained dividend growth over 15 years presents a compelling narrative for dividend investors.
📊 Overview
Intuit Inc. operates within the technology sector, demonstrating industry-standard resilience and adaptability. The company's current dividend payout stands at $3.69 per share, reflective of its strategic financial governance. Having established a 15-year dividend history without any suspensions, Intuit affirms its capability to consistently reward shareholders.
| Metric | Value |
|---|---|
| Sector | Technology |
| Dividend yield | 0.54 % |
| Current dividend per share | $3.69 USD |
| Dividend history | 15 years |
| Last cut or suspension | None |
🗣️ Dividend History
The dividend history is a testament to Intuit's unwavering commitment to its shareholders. Over the years, the company's dividends have reflected both growth and stability, important for long-term investment perspectives.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | $3.12 |
| 2024 | $3.74 |
| 2023 | $3.24 |
| 2022 | $2.82 |
| 2021 | $2.45 |
📈 Dividend Growth
Intuit's dividend growth is a pivotal indicator of its financial health and strategic foresight. Over the last three years, dividends have grown by 15.14%, and over the last five years by 14.03%, underscoring steady expansion conducive for future confidence.
| Time | Growth |
|---|---|
| 3 years | 15.14 % |
| 5 years | 14.03 % |
The average dividend growth is 14.03% over 5 years. This shows moderate but steady dividend growth.
💼 Payout Ratio
Payout ratios provide insight into the sustainability of the company's dividends. An EPS-based payout ratio of 29.82% and a free cash flow-based payout of 16.88% are suggestive of a firm position with ample room to maintain, or even increase, dividends.
| Key figure | Ratio |
|---|---|
| EPS-based | 29.82 % |
| Free cash flow-based | 16.88 % |
The EPS and FCF payout ratios reflect a conservative approach, leaving room for future dividend growth without financial strain.
📊 Cashflow & Capital Efficiency
Analyzing Intuit's cash flow reveals a significant part of its capital strategy. These measures highlight the company's ability to generate cash and invest in growth efficiently, critical for long-term sustainability.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 2.56 % | 3.33 % | 2.91 % |
| Earnings Yield | 1.63 % | 1.66 % | 1.65 % |
| CAPEX to Operating Cash Flow | 5.12 % | 5.15 % | 5.89 % |
| Stock-based Compensation to Revenue | 11.91 % | 11.92 % | 10.28 % |
| Free Cash Flow / Operating Cash Flow Ratio | 94.88 % | 94.85 % | 94.11 % |
The company's robust cash flow generation capabilities combined with prudent capital deployment suggest solid operational efficiency.
💹 Balance Sheet & Leverage Analysis
Assessing the balance sheet and financial leverage is vital to understanding the company's financial health. The ratios below confirm financial flexibility and manageable debt levels.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.36 | 0.38 | 0.45 |
| Debt-to-Assets | 0.20 | 0.24 | 0.27 |
| Debt-to-Capital | 0.26 | 0.28 | 0.31 |
| Net Debt to EBITDA | 0.65 | 0.93 | 1.38 |
| Current Ratio | 1.29 | 1.47 | 1.39 |
| Quick Ratio | 1.29 | 1.36 | 1.39 |
Current and quick ratios indicate a strong liquidity position, suggesting Intuit can meet its short-term obligations.
📊 Fundamental Strength & Profitability
Intuit's profitability is enhanced by its efficient use of resources, as highlighted by the various profitability ratios below.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 16.07 % | 13.81 % | 12.57 % |
| Return on Assets | 9.22 % | 8.58 % | 7.45 % |
| Net Margin | 18.19 % | 16.59 % | 16.23 % |
| Gross Margin | 78.72 % | 78.13 % | 81.09 % |
| EBIT Margin | 23.29 % | 21.86 % | 20.61 % |
| Research & Development to Revenue | 16.91 % | 17.67 % | 18.44 % |
High returns on equity and assets highlight effective use of shareholders' capital and efficient asset utilization.
📉 Price Development
🎯 Dividend Scoring System
| Criterion | Description | Score |
|---|---|---|
| Dividend yield | Relatively low yield. | |
| Dividend Stability | 15 years of consistent payments. | |
| Dividend growth | Steady growth over years. | |
| Payout ratio | Conservative payout ratios. | |
| Financial stability | Strong financial metrics. | |
| Dividend continuity | No cuts or suspensions. | |
| Cashflow Coverage | Good cash flow coverage. | |
| Balance Sheet Quality | Healthy balance sheet. |
Overall Score: 33/40
✅ Rating
Intuit Inc. stands out with a strong dividend framework, marked by consistent growth and stable payouts. Despite a modest yield, its durability and robust financial position make it a recommended buy for investors focusing on dividend stability and long-term growth potential.