May 29, 2025 a 07:31 am
IPG: Dividend Analysis - The Interpublic Group of Companies, Inc.
The Interpublic Group of Companies, Inc. presents a substantial dividend yield and a resilient dividend history. Its growth trajectory appears moderate yet consistent over time, marking it as a potentially stable choice for income-focused investors. However, stakeholders must consider elevated payout ratios and leverage figures.
📊 Overview
Here is a detailed overview of The Interpublic Group's dividend-related metrics:
| Key Metric | Details |
|---|---|
| Sector | Communication Services |
| Dividend yield | 5.43 % |
| Current dividend per share | 1.32 USD |
| Dividend history | 31 years |
| Last cut or suspension | None |
🗣️ Dividend History
The Interpublic Group maintains a long-standing dividend payment tradition of over three decades, highlighting its obligation to shareholders. This track record is crucial for investors seeking reliability in returns.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 0.66 |
| 2024 | 1.32 |
| 2023 | 1.24 |
| 2022 | 1.16 |
| 2021 | 1.08 |
📈 Dividend Growth
A moderate rise in dividend returns reflects The Interpublic Group's capacity to enhance shareholder value steadily. Monitoring these trends informs investment decisions linked to income predictability and growth potential.
| Time | Growth |
|---|---|
| 3 years | 6.92 % |
| 5 years | 7.03 % |
The average dividend growth is 7.03 % over 5 years. This shows moderate but steady dividend growth.
🚀 Payout Ratio
Evaluating payout ratios presents insight into potential sustainability and pressure on earnings. A high EPS-based payout (99.84 %) signals a possible overextension; meanwhile, a FCF-based payout (46.71 %) holds a more sustainable outlook.
| Key figure | Ratio |
|---|---|
| EPS-based | 99.84 % |
| Free cash flow-based | 46.71 % |
The EPS-based payout ratio indicates a high distribution of earnings, which might strain financial flexibility, whereas the FCF-based ratio provides a buffer.
🔍 Cashflow & Capital Efficiency
Comprehensive cash flow analysis and capital use direct stakeholders toward financial viability and effective resource allocation.
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Free Cash Flow Yield | 8.69% | 2.99% | 3.30% |
| Earnings Yield | 6.56% | 8.76% | 7.19% |
| CAPEX to Operating Cash Flow | 13.44% | 32.32% | 29.25% |
| Stock-based Compensation to Revenue | 0.61% | 0.43% | 0.46% |
| Free Cash Flow / Operating Cash Flow Ratio | 86.56% | 67.68% | 70.75% |
| Return on Invested Capital | 9.53% | 12.41% | 11.32% |
The company's free cash flow and returns suggest proficient capital utilization, albeit with potential CAPEX implications affecting liquidity.
💼 Balance Sheet & Leverage Analysis
Crucial for estimating financial health and leverage risks, the balance sheet figures signal how effectively The Interpublic Group controls debt and maintains liquidity.
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Debt-to-Equity | 1.12 | 1.18 | 1.24 |
| Debt-to-Assets | 0.23 | 0.24 | 0.24 |
| Debt-to-Capital | 0.53 | 0.54 | 0.55 |
| Net Debt to EBITDA | 1.34 | 1.20 | 1.13 |
| Current Ratio | 1.09 | 1.06 | 1.03 |
| Quick Ratio | 1.09 | 1.06 | 1.03 |
| Financial Leverage | 4.83 | 4.89 | 5.17 |
The measures suggest active debt usage within industry norms, balanced by adequate liquidity levels, although leverage magnitudes warrant vigilant oversight.
📊 Fundamental Strength & Profitability
The company's profitability metrics are essential for assessing operational success and strategic financial planning.
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Return on Equity | 18.16% | 27.86% | 25.71% |
| Return on Assets | 3.76% | 5.70% | 4.98% |
| Net Margin | 6.45% | 10.09% | 8.58% |
| EBIT Margin | 11.96% | 15.00% | 13.15% |
| EBITDA Margin | 14.42% | 17.45% | 16.16% |
| Gross Margin | 17.02% | 16.66% | 16.88% |
| R&D to Revenue | 0.00% | 0.00% | 0.00% |
Profitability presents promising ROE and ROA, asserting efficient utilization of equity, assets, and effective cost management strategies demonstrated through margins.
📈 Price Development
🏆 Dividend Scoring System
| Criteria | Score (1-5) | Score Bar |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 5 | |
| Dividend growth | 3 | |
| Payout ratio | 3 | |
| Financial stability | 3 | |
| Dividend continuity | 4 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 3 |
Total Score: 28/40
✅ Rating
In summation, The Interpublic Group offers a robust dividend yield and sustained historical dividend practices, fitting asset for income-oriented portfolios with an overall balanced risk-reward proposition, meriting a cautious yet favorable recommendation.