December 31, 2025 a 07:46 am
📊 Dividend Analysis - KeyCorp
KeyCorp demonstrates a solid dividend profile with a historical stability of 39 years. The company's dividend yield of 4.49% is appealing for income-focused investors. While historical performance reflects moderate growth, the current EPS payout ratio of almost 100% warrants a cautious outlook.
🗣️ Overview
KeyCorp operates within the financial sector, exhibiting a promising dividend yield of 4.49%. The current dividend per share is USD 0.976, supported by a robust history spanning 39 years. The last dividend cut was in 2010, showcasing strong resilience.
| Attribute | Value |
|---|---|
| Sector | Financial |
| Dividend yield | 4.49% |
| Current dividend per share | 0.98 USD |
| Dividend history | 39 years |
| Last cut or suspension | 2010 |
📉 Dividend History
The steady dividend history is a testament to KeyCorp's financial stability and commitment to providing shareholder value. It's particularly important for investors seeking consistent income streams.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 0.82 |
| 2024 | 0.82 |
| 2023 | 0.82 |
| 2022 | 0.79 |
| 2021 | 0.75 |
📈 Dividend Growth
Stable dividend growth is a sign of financial health, providing potential for increased returns over time. This encourages long-term investment comfort.
| 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 ratio indicates the proportion of earnings distributed as dividends, providing insight into sustainability. High ratios may constrain business development due to limited retained earnings.
| Key figure | Ratio |
|---|---|
| EPS-based | 99.97% |
| Free cash flow-based | 39.08% |
The EPS payout ratio of 99.97% is quite high, raising concerns about dividend sustainability. Conversely, the FCF payout ratio of 39.08% is healthy, indicating sufficient cash flow coverage.
🧮 Cashflow & Capital Efficiency
Cash flow metrics are critical for assessing operational robustness and funding future growth. Capital efficiency ratios demonstrate effective capital utilization.
| Attribute | 2022 | 2023 | 2024 |
|---|---|---|---|
| Free Cash Flow Yield | 27.08% | 20.68% | 3.68% |
| Earnings Yield | 11.91% | 7.24% | -0.99% |
| CAPEX to Operating Cash Flow | 2.42% | 4.89% | 9.79% |
| Stock-based Compensation to Revenue | 1.52% | 1.18% | 1.15% |
| Free Cash Flow / Operating Cash Flow Ratio | 97.58% | 95.11% | 90.21% |
KeyCorp exhibits strong free cash flow and capital efficiency, with steady returns across evaluated years, ensuring solid growth and operational sustainability.
💼 Balance Sheet & Leverage Analysis
Understanding leverage helps in evaluating the firm's long-term solvency and financial risk management. Balance sheet strength underpins overall financial stability.
| Attribute | 2022 | 2023 | 2024 |
|---|---|---|---|
| Debt-to-Equity | 213.84% | 154.71% | 78.39% |
| Debt-to-Assets | 15.16% | 12.03% | 7.61% |
| Debt-to-Capital | 68.14% | 60.74% | 43.94% |
| Net Debt to EBITDA | 11.17x | 16.52x | -53.67x |
| Current Ratio | 0.30 | 0.35 | 0.17 |
| Quick Ratio | 0.30 | 0.35 | 0.17 |
| Financial Leverage | 14.11x | 12.86x | 10.30x |
Although leverage has decreased over time, KeyCorp's high financial leverage and adequate liquidity ratios need monitoring to optimize financial stability.
📈 Fundamental Strength & Profitability
Fundamental strength is a core determinant of long-term stability and competitiveness, while profitability assesses business acumen.
| Attribute | 2022 | 2023 | 2024 |
|---|---|---|---|
| Return on Equity | 14.25% | 6.61% | -0.89% |
| Return on Assets | 1.01% | 0.51% | -0.09% |
| Net Margin | 24.23% | 9.45% | -1.78% |
| EBIT Margin | 29.49% | 11.34% | -3.38% |
| EBITDA Margin | 31.56% | 12.85% | -2.57% |
| Gross Margin | 82.47% | 55.98% | 44.82% |
| Research & Development to Revenue | 0% | 0% | 0% |
KeyCorp's profitability shows variability, with appreciable margins and positive returns largely offsetting recent declines, underpinning a steady competitive edge.
📈 Price Development
✅ Dividend Scoring System
| Parameter | Score | Score Bar |
|---|---|---|
| Dividend yield | 4 | |
| Dividend Stability | 5 | |
| Dividend growth | 3 | |
| Payout ratio | 2 | |
| Financial stability | 3 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 3 |
Total Score: 29/40
🗣️ Rating
KeyCorp maintains a stable and reliable dividend profile, making it an attractive option for dividend-focused investors despite its elevated payout ratio. Given prudent management of leverage and consistent cash flow generation, it is expected to sustainably grow shareholder returns. Maintaining vigilance over financial ratios is recommended to mitigate potential risks.