Intuit Inc., with its robust financial health, offers a stable dividend yield of 1.80%, appealing to investors seeking consistent income. Its steady dividend growth over 16 years highlights a commitment to shareholder returns, complemented by a conservative payout ratio which secures future dividend payments. The company's efficient capital allocation and cash flow resilience further bolster its investment appeal, affirming its position as a noteworthy player in the tech sector.
As a key player in the financial software sector, Intuit Inc. has shown commitment to providing shareholder returns through dividends. The company maintains a dividend yield of 1.80%, with a current dividend per share of 4.25 USD, and boasts a 16-year long dividend history without any recent cuts or suspensions.
| Metric | Value |
|---|---|
| Sector | Financial Software |
| Dividend yield | 1.80% |
| Current dividend per share | 4.25 USD |
| Dividend history | 16 years |
| Last cut or suspension | None |
Understanding the company's dividend history is crucial for evaluating the reliability of its payout. Intuit Inc. has not only maintained but steadily increased its dividends over the years, indicating strong earnings growth and cash flow management.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 3.60 |
| 2025 | 4.32 |
| 2024 | 3.74 |
| 2023 | 3.24 |
| 2022 | 2.82 |
Analyzing dividend growth provides insight into a company's long-term payout sustainability. Intuit's dividends have grown by approximately 14.66% over the past five years, which shows moderate but consistent growth, suggesting an ongoing commitment to increasing shareholder returns.
| Time | Growth |
|---|---|
| 3 years | 15.28% |
| 5 years | 14.66% |
The average dividend growth is 14.66% over 5 years. This shows moderate but steady dividend growth.
A company's payout ratio illustrates its ability to sustain dividends. Intuit exhibits a conservative approach with a payout ratio of 25.57% based on EPS and 15.06% based on FCF. This suggests that Intuit has ample earnings to continue paying dividends, with plenty of room for reinvestment into growing the business.
| Key figure | Ratio |
|---|---|
| EPS-based | 25.57% |
| Free cash flow-based | 15.06% |
With payout ratios of 25.57% (EPS) and 15.06% (FCF), Intuit demonstrates financial prudence and the capability to sustain and possibly increase dividends in the future.
Intuit's cash flow management is a testament to its operational efficiency. A high free cash flow yield of 10.56% indicates strong cash generation compared to its enterprise value. The company's capex to operating cash flow ratio is minimal, enabling robust free cash flow. Such metrics demonstrate Intuit's strategic capital deployment and ability to reinvest in growth opportunities while maintaining shareholder returns.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 2.77% | 2.56% | 3.33% |
| Earnings Yield | 1.76% | 1.63% | 1.66% |
| CAPEX/Operating Cash Flow | 2.00% | 5.12% | 5.15% |
| Stock-based Compensation/Revenue | 10.45% | 11.91% | 11.92% |
| Free Cash Flow/Operating Cash Flow Ratio | 98.00% | 94.88% | 94.85% |
Intuit's stable cash flow generation and efficient capital allocation strategies are indicative of its financial resilience and potential for future growth, supporting strong shareholder returns.
An analysis of Intuit's financial leverage reveals prudent debt management. With a debt-to-equity ratio of 33.68%, the company maintains low leverage, which contributes to financial stability and reduces risk during economic downturns. Additionally, high current and quick ratios indicate strong liquidity.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 33.68% | 35.62% | 38.73% |
| Debt-to-Assets | 17.96% | 20.44% | 24.08% |
| Debt-to-Capital | 25.20% | 26.26% | 27.92% |
| Net Debt to EBITDA | 0.64 | 0.65 | 0.95 |
| Current Ratio | 1.36 | 1.29 | 1.47 |
| Quick Ratio | 1.36 | 1.29 | 1.47 |
| Financial Leverage | 1.88 | 1.74 | 1.61 |
Intuit's financial stability is bolstered by low leverage and robust liquidity, enabling it to navigate market challenges effectively while preserving capital for strategic initiatives.
Intuit's profitability metrics underscore its operational efficiency and market leadership. Strong return ratios indicate effective capital utilization, while healthy profit margins confirm robust core operations and competitive advantages.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 19.63% | 16.07% | 13.81% |
| Return on Assets | 10.47% | 9.22% | 8.58% |
| Margins: Net | 20.55% | 18.19% | 16.59% |
| EBIT | 26.98% | 23.29% | 22.53% |
| EBITDA | 31.28% | 28.13% | 28.14% |
| Gross | 80.76% | 78.72% | 78.13% |
| Research & Development/Revenue | 15.55% | 16.91% | 17.67% |
Intuit’s strong profitability and strategic reinvestment in R&D underscores the company’s capacity to maintain its competitive position and deliver substantial value to its shareholders.
| Category | Score (1-5) | Score Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 4 | |
| Dividend growth | 3 | |
| Payout ratio | 5 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 5 | |
| Balance Sheet Quality | 4 |
Intuit Inc. showcases a compelling investment profile with solid dividend payouts supported by robust financial metrics. The company’s commitment to returning capital to shareholders, matched with prudent financial management, recommends it as a trustworthy pick for income-focused investors while its growth potential remains promising.
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