November 06, 2025 a 12:47 pm
K: Dividend Analysis - Kellanova
Kellanova presents a robust dividend profile with a rich history of sustainable dividend payouts. The company's dividend yield of 2.76% represents a steady income stream for investors. Despite a moderate EPS payout ratio, Kellanova remains committed to enhancing shareholder returns, making it a potentially attractive pick for dividend-focused portfolios.
📊 Overview
Kellanova operates within a vibrant sector known for its resilience, which supports its dividend strategy. The current dividend yield offers an appealing return amid stable payout ratios.
| Criteria | Details |
|---|---|
| Sector | Consumer Goods |
| Dividend yield | 2.76 % |
| Current dividend per share | 2.26 USD |
| Dividend history | 42 years |
| Last cut or suspension | None |
📈 Dividend History
Historical patterns show a disciplined approach to dividend distributions, critical for assessing future payouts. Kellanova's consistent history underscores a reliable income strategy for its investors.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 2.30 |
| 2024 | 2.26 |
| 2023 | 2.23 |
| 2022 | 2.20 |
| 2021 | 2.17 |
📈 Dividend Growth
Understanding the growth of dividends is essential to gauge the company's potential to increase payouts in the future. Kellanova's growth rate reflects a strategic positioning for long-term prosperity.
| Time | Growth |
|---|---|
| 3 years | 1.38 % |
| 5 years | 1.27 % |
The average dividend growth is 1.27 % over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
The payout ratio is crucial to assess the sustainability of dividend payouts. Kellanova's metrics present an EPS payout ratio that balances well against its free cash flow generation.
| Key figure | Ratio |
|---|---|
| EPS-based | 61.65 % |
| Free cash flow-based | 121.10 % |
The EPS payout ratio of 61.65 % suggests a healthy margin for dividend payments, while the elevated FCF payout ratio requires attention in operational cash flows.
Free Cash Flow & Capital Efficiency
Analyzing these metrics provides insight into the company's financial agility and efficiency in utilizing capital resources.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 4.07 % | 5.06 % | 5.09 % |
| Earnings Yield | 4.82 % | 4.97 % | 4.20 % |
| CAPEX to Operating Cash Flow | 35.68 % | 41.16 % | 29.56 % |
| Stock-based Compensation to Revenue | 0.70 % | 0.72 % | 0.76 % |
| Free Cash Flow / Operating Cash Flow Ratio | 64.32 % | 58.84 % | 70.44 % |
The fluctuation in CAPEX and free cash flows depicts a dynamic approach in capital investment strategies, hinting at potential competitive advantages.
Balance Sheet & Leverage Analysis
A robust balance sheet ensures the company can withstand financial turbulence and continue to support dividend payouts.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 1.68 | 2.06 | 1.82 |
| Debt-to-Assets | 40.58 % | 41.78 % | 38.73 % |
| Debt-to-Capital | 62.69 % | 67.27 % | 64.51 % |
| Net Debt to EBITDA | 2.38 | 3.56 | 4.19 |
| Current Ratio | 0.81 | 0.66 | 0.66 |
| Quick Ratio | 0.56 | 0.41 | 0.45 |
| Financial Leverage | 4.14 | 4.92 | 4.69 |
Borrowing aligns with strategic objectives, while maintaining solid leverage metrics supports financial durability and secure dividend payments.
Fundamental Strength & Profitability
Kellanova's profitability metrics reveal its ability to generate sufficient return on invested capital and sustain its dividend commitments.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 35.58 % | 29.95 % | 24.36 % |
| Return on Assets | 8.59 % | 6.09 % | 5.19 % |
| Margins: Net, EBIT, EBITDA, Gross | 10.53 %, 15.75 %, 18.63 %, 36.78 % | 7.25 %, 10.60 %, 13.39 %, 33.52 % | 7.59 %, 9.77 %, 12.96 %, 29.50 % |
| Research & Development to Revenue | 0.90 % | 0.88 % | 0.88 % |
Superior financial metrics substantiate Kellanova's strategic emphasis on profitability, enhancing its ability to fulfil long-term commitments.
Price Development
🗣️ Dividend Scoring System
| Criteria | Score | Assessment |
|---|---|---|
| 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
With a strong blend of stable dividend yields and a reliable history of payouts, Kellanova presents itself as a secure dividend option. While growth remains moderate, its commendable stability and operational effectiveness make it a worthwhile consideration for conservative income-focused investors.