August 01, 2025 a 02:47 am
INTU: Dividend Analysis - Intuit Inc.
Intuit Inc. exhibits a robust dividend profile characterized by consistency and moderate growth. The company's financial stability and prudent management of payout ratios reinforce its position as a reliable dividend payer within the tech sector.
Overview
📊Intuit Inc. operates in the technology sector, a field known for innovation and consistent revenue generation which supports dividend payments. Despite a modest dividend yield, the consistent growth and sustained payment history illustrate commitment to shareholder returns.
| Metric | Details |
|---|---|
| Sector: | Technology |
| Dividend Yield: | 0.56% |
| Current Dividend Per Share: | 3.69 USD |
| Dividend History: | 15 years |
| Last Cut or Suspension: | None |
Dividend History
🗣️The history of uninterrupted dividends over 15 years is a testament to Intuit's consistent financial performance and its management's commitment to rewarding shareholders. This track record is essential for income-focused investors seeking stable returns.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 3.12 |
| 2024 | 3.74 |
| 2023 | 3.24 |
| 2022 | 2.82 |
| 2021 | 2.45 |
Dividend Growth
📈The growth in dividends over both 3 and 5 year periods is indicative of Intuit's strategic focus on increasing shareholder value through incremental enhancements in dividend payouts.
| 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, suggesting strong operational performance and management's positive outlook.
Payout Ratio
📉Payout ratios are critical in assessing the sustainability of dividends. Intuit's EPS and FCF payout ratios indicate a conservative approach, ensuring financial flexibility while maintaining shareholder returns.
| Key Figure | Ratio |
|---|---|
| EPS-based | 29.82% |
| Free cash flow-based | 16.88% |
With a 29.82% payout ratio based on EPS and 16.88% based on FCF, Intuit demonstrates a sound balance between rewarding investors and sustaining growth investment.
Cashflow & Capital Efficiency
✅Cash flow metrics provide insight into financial quality and investment strategies, critical for understanding a company’s ability to sustain and grow dividends.
| Metric | 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% |
Intuit's stable cash flow and efficient capital deployment reflect its robust financial health and ability to maintain dividend payments.
Balance Sheet & Leverage Analysis
⚠️A strong balance sheet with manageable debt levels is imperative for sustainable dividend policies. Intuit's ratios exhibit a healthy balance of equity and liabilities, enhancing financial resilience.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.36 | 0.39 | 0.46 |
| Debt-to-Assets | 0.20 | 0.24 | 0.27 |
| Debt-to-Capital | 0.26 | 0.28 | 0.31 |
| Net Debt to EBITDA | 0.65 | 0.95 | 1.41 |
| Current Ratio | 1.29 | 1.47 | 1.39 |
| Quick Ratio | 1.29 | 1.47 | 1.39 |
The improving Net Debt to EBITDA ratio is encouraging, providing assurance of Intuit's capacity to honor long-term debt commitments.
Fundamental Strength & Profitability
👍Intuit's profitability is underscored by consistent returns on equity and assets, and the quality margins, reinforcing its competitive positioning in the tech sector.
| Metric | 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% |
| EBIT Margin | 23.29% | 22.53% | 20.61% |
| EBITDA Margin | 28.13% | 28.14% | 26.47% |
| Gross Margin | 78.72% | 78.13% | 81.09% |
| Research & Development to Revenue | 16.91% | 17.67% | 18.44% |
This profitability profile indicates solid operational efficiency, sustaining Intuit's capacity to consistently reward its shareholders.
Price Development
Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend Yield | 2 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout Ratio | 5 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 32/40
Rating
Intuit Inc. emerges as a commendable option in the tech sector for dividend-seeking investors due to its stable payout history, conservative payout ratios, and substantial financial health. The company is recommended as a solid choice for investors valuing dividend stability and consistent growth.