July 27, 2025 a 11:31 am
📊 Dividend Analysis - KeyCorp
KeyCorp, a notable player in its sector, presents a compelling dividend profile with a storied history of consistent payments spanning 39 years. The current yield stands attractive at 4.42%, a testament to its commitment to returning value to shareholders. With recent times indicating modest growth, investors receive reassurance from its resilience amid market fluctuations. However, the high payout ratios require cautious optimism.
🗣️ Overview
KeyCorp operates in the financial sector, offering reliable dividend returns. While the company's consistency in dividend payments remains a strong point with a 39-year history, stakeholders must also consider the recent challenges reflected in payout metrics. Vigilance is advised as the yield, though enticing, accompanies high EPS and FCF payout ratios.
| Key Metrics | Data |
|---|---|
| Sector | Financial |
| Dividend Yield | 4.42% |
| Current Dividend Per Share | 0.98 USD |
| Dividend History | 39 years |
| Last Cut or Suspension | None |
📈 Dividend History
The historical dividend overview showcases KeyCorp's commitment to rewards its shareholders. A 39-year history of regular dividend distribution highlights its resilience. This consistency reinforces investor confidence, demonstrating value through stable income generation.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 0.615 |
| 2024 | 0.820 |
| 2023 | 0.820 |
| 2022 | 0.790 |
| 2021 | 0.750 |
📉 Dividend Growth
KeyCorp's growth trajectory in dividends over the recent periods indicates cautious optimism. The company displays moderate upward trends, providing shareholders with a sense of upcoming stability and growth potential.
| Time | Growth |
|---|---|
| 3 years | 3.02% |
| 5 years | 2.92% |
The average dividend growth is 2.92% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
The payout ratios of KeyCorp, particularly the EPS and FCF-based metrics, reveal heightened caution. The negative and extreme percentages suggest vulnerabilities, mainly due to potentially unsustainable payout practices under current profits.
| Key Figure | Ratio |
|---|---|
| EPS-based | -431.89% |
| Free cash flow-based | 1048.92% |
The payout ratios suggest significant financial stress, with payout levels currently exceeding earnings and cash flow generation, warning of potential sustainability issues.
⚠️ Cashflow & Capital Efficiency
Analyzing the cash flow and capital efficiency reveals KeyCorp's nuanced capital dynamics. The free cash flow yield and earnings yield provide insights into underlying revenue transformations and potential capital optimization pathways.
| Key Metrics | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 3.68% | 20.68% | 27.08% |
| Earnings Yield | -0.99% | 7.24% | 11.9% |
| CAPEX to Operating Cash Flow | 9.79% | 4.89% | 2.42% |
| Stock-based Compensation to Revenue | 1.15% | 1.18% | 1.52% |
| Free Cash Flow / Operating Cash Flow Ratio | 90.21% | 95.11% | 97.58% |
The data reflects a mix of capital efficiencies and weaknesses, with inconsistent cash flow yield and considerable equity compensation impact on the revenue structure, suggesting necessary optimizations.
📊 Balance Sheet & Leverage Analysis
The balance sheet overview reveals KeyCorp's structural leverage with respect to debts and equity alignment. The observed financial leverage signifies substantial reliance on borrowed funds, necessitating prudent leverage management strategies.
| Key Metrics | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.78 | 1.55 | 2.14 |
| Debt-to-Assets | 0.08 | 0.12 | 0.15 |
| Debt-to-Capital | 0.44 | 0.61 | 0.68 |
| Net Debt to EBITDA | -53.67 | 16.52 | 11.16 |
| Current Ratio | 15.41 | 0.35 | 0.30 |
| Quick Ratio | 0.17 | 0.35 | 0.30 |
| Financial Leverage | 10.30 | 12.86 | 14.11 |
The data indicates KeyCorp's considerable leverage, underscoring heightened risk in volatile markets, demanding watchfulness on debt management strategies.
🔎 Fundamental Strength & Profitability
KeyCorp's fundamental indicators depict a complex profitability picture with varying returns on equity and assets. The margins indicate intensive capital pressures and potential areas for operational efficiency gains.
| Key Metrics | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | -0.89% | 6.61% | 14.25% |
| Return on Assets | -0.09% | 0.51% | 1.01% |
| Margins: Net | -1.78% | 9.45% | 24.23% |
| Margins: EBIT | -3.38% | 11.34% | 29.49% |
| Margins: EBITDA | -2.57% | 12.85% | 31.56% |
| Margins: Gross | 44.82% | 55.98% | 82.47% |
| R&D to Revenue | 0% | 0% | 0% |
The profit landscape reflects both challenges and opportunities within operational dynamics, calling for strategic enhancements across non-performing metrics.
📊 Price Development
🏆 Dividend Scoring System
| Criteria | Score | Visual |
|---|---|---|
| Dividend Yield | 4/5 | |
| Dividend Stability | 5/5 | |
| Dividend Growth | 3/5 | |
| Payout Ratio | 1/5 | |
| Financial Stability | 2/5 | |
| Dividend Continuity | 5/5 | |
| Cashflow Coverage | 2/5 | |
| Balance Sheet Quality | 3/5 |
Total Score: 25/40
🔍 Rating
KeyCorp's dividend profile reveals robust historical stability and a commendable yielding pattern. While certain metrics suggest potential financial vulnerabilities, the company's strong dividend history provides a foundation for cautious optimism. It remains a viable consideration for income-focused investors, albeit with a necessary eye on financial health metrics and payout sustainability.