January 07, 2026 a 07:46 am
LII: Dividend Analysis - Lennox International Inc.
Lennox International Inc. presents a stable and promising dividend profile, characterized by a remarkable history and consistent growth. The company's dividend yield stands at a moderate level, reflecting its strong financial position and investor confidence. Recent metrics indicate sustainable dividend distributions backed by robust operational efficiency.
📊 Overview
Lennox International Inc. operates in the Industrial Goods sector, boasting a sturdy dividend framework. The company's dividend yield is a modest 1.04%, with a current dividend per share of 4.50 USD. Lennox has sustained its dividend payouts for 27 consecutive years, illustrating remarkable stability, with no recent cuts or suspensions.
| Metric | Details |
|---|---|
| Sector | Industrial Goods |
| Dividend Yield | 1.04 % |
| Current Dividend per Share | 4.50 USD |
| Dividend History | 27 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
The historical performance of dividends indicates a reliable and mature company policy toward shareholder returns. Regular dividend increases highlight the company's strategic financial management.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 5.05 |
| 2024 | 4.55 |
| 2023 | 4.36 |
| 2022 | 4.10 |
| 2021 | 3.53 |
📈 Dividend Growth
Past growth patterns reveal a steady increase in dividends, signifying the company’s commitment to enhancing shareholder value. The average dividend growth over three years was 7.19%, while five-year growth reached 10.39%.
| Time | Growth |
|---|---|
| 3 years | 7.19 % |
| 5 years | 10.39 % |
The average dividend growth is 10.39% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
The payout ratio is crucial to understand a company's capacity to sustain dividend payouts. Lennox’s EPS-based payout ratio stands at 18.89%, while its free cash flow-based payout ratio is 29.56%.
| Key Figure | Ratio |
|---|---|
| EPS-based | 18.89 % |
| Free cash flow-based | 29.56 % |
Such ratios indicate a healthy dividend distribution capacity with ample room for reinvestment in growth initiatives.
✅ Cashflow & Capital Efficiency
Assessing cashflow dynamics and capital efficiency is essential for evaluating a firm's operational competence and ability to fund dividends. Recent data on free cash flow yield and earnings yield suggest stability, though current trends should be monitored for sustained growth.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 3.61% | 3.06% | 2.36% |
| Earnings Yield | 3.72% | 3.71% | 5.82% |
| CAPEX to Operating Cash Flow | 17.30% | 33.99% | 33.44% |
| Stock-based Compensation to Revenue | 0.53% | 0.60% | 0.46% |
| Free Cash Flow / Operating Cash Flow Ratio | 82.70% | 66.01% | 66.56% |
The cash flow metrics showcase Lennox’s capacity for efficient capital allocation, suggesting a solid foundation for future growth and shareholder returns.
⚠️ Balance Sheet & Leverage Analysis
The balance sheet provides a snapshot of the company's financial health, indicating leverage levels and liquidity position. The debt metrics suggest caution, as ratios indicate higher-than-average leverage, warranting attention to debt management strategies.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 1.75 | 5.35 | -8.62 |
| Debt-to-Assets | 0.43 | 0.55 | 0.68 |
| Debt-to-Capital | 0.64 | 0.84 | 1.13 |
| Net Debt to EBITDA | 0.95 | 1.67 | 2.31 |
| Current Ratio | 1.68 | 1.41 | 0.94 |
| Quick Ratio | 0.90 | 0.72 | 0.47 |
| Financial Leverage | 4.08 | 9.81 | -12.64 |
An analysis of these ratios indicates financial stability concerns, especially in addressing leverage and improving liquidity.
🔍 Fundamental Strength & Profitability
Lennox's profitability and operational efficiency are reflected in key return ratios, though past disparities highlight the need for judicious expense management. Continued monitoring of investment returns and margins is advised.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 94.91% | 206.83% | -244.76% |
| Return on Assets | 23.24% | 21.09% | 19.36% |
| Margins: Net | 15.11% | 11.84% | 10.54% |
| EBIT | 19.43% | 15.93% | 13.89% |
| EBITDA | 21.21% | 17.65% | 15.55% |
| Gross | 33.17% | 31.07% | 27.23% |
| Research & Development to Revenue | 0% | 0% | 0% |
The profit margins and return ratios emphasize the firm's ability to generate profits. Lennox shows strengths in fundamental metrics, enhancing investment appeal.
📉 Price Development
📊 Dividend Scoring System
The dividend scoring system provides a comprehensive assessment of dividend health based on multiple criteria.
| Criteria | Score | Assessment |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 5 | |
| Financial Stability | 3 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 2 |
Total Score: 31/40
✅ Rating
Lennox International Inc. earns a robust investment consideration due to its strong historical dividend growth, reasonable payout ratios, and stable financial health. The evaluation suggests potential for sustained shareholder returns, albeit with attention to leverage management.