June 28, 2025 a 03:31 pm
LIN: Dividend Analysis - Linde plc
Linde plc exhibits a solid dividend profile with a consistent dividend growth history of over 34 years. Its moderate dividend yield of 1.22% might not be standout among its peers, but its steady payout ratio and robust fundamentals make it a reliable choice for investors seeking income stability. The company's progressive dividend policy and resilience through market fluctuations demonstrate its commitment to returning value to shareholders. Linde plc's market cap and operational efficiency further solidify its position as a formidable entity in its sector.
Overview 📊
With a market capitalization of $218.32 billion and a significant presence in the Basic Materials sector, Linde plc provides a sustainable and growing dividend profile. Its dividend of 5.54 USD per share translates to a modest yield of 1.22% and a remarkable history of 34 consecutive years with no cuts or suspensions, illustrating consistent reliability.
| Metric | Value |
|---|---|
| Sector | Basic Materials |
| Dividend yield | 1.22% |
| Current dividend per share | 5.54 USD |
| Dividend history | 34 years |
| Last cut or suspension | None |
Dividend History 📈
The dividend history of Linde plc highlights its robust track of reliable payments, making it an attractive choice for income-focused investors. Understanding historical dividend performance aids investors in assessing future yield expectations and risk factors.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 3.00 |
| 2024 | 5.56 |
| 2023 | 5.10 |
| 2022 | 4.68 |
| 2021 | 4.24 |
Dividend Growth 🗣️
The analysis of dividend growth reveals a sustainable trend: over the past three years, dividends grew by 9.46%, and over five years, by 9.70%. These periods of growth reflect the company's strategic reinvestments and its focus on shareholder returns with a dividend policy targeted at steady increases.
| Time | Growth |
|---|---|
| 3 years | 9.46% |
| 5 years | 9.70% |
The average dividend growth is 9.70% over 5 years. This shows moderate but steady dividend growth.
Payout Ratio ⚠️
The payout ratio is a fundamental measure of a company's ability to sustain dividend payments. Linde plc's EPS-based payout ratio stands at 39.70%, while its free cash flow-based ratio is 53.15%. These figures indicate a well-managed distribution strategy, ensuring dividends are well-supported by earnings and cash flow.
| Key figure | Ratio |
|---|---|
| EPS-based | 39.70% |
| Free cash flow-based | 53.15% |
A payout ratio of 39.70% (EPS) and 53.15% (FCF) reflects prudent fiscal management, providing sufficient reinvestment capability while maintaining investor payouts.
Cashflow & Capital Efficiency 📉
An in-depth look at cash flow and capital efficiency offers insights into operational robustness and financial management. Metrics like Free Cash Flow Yield and CAPEX to Operating Cash Flow measure efficiency, while Stock-based Compensation to Revenue assesses debt control.
| Metric | Value |
|---|---|
| Free Cash Flow Yield | 2.25% |
| Earnings Yield | 3.01% |
| CAPEX to Operating Cash Flow | 49.00% |
| Stock-based Compensation to Revenue | 0.38% |
| Free Cash Flow / Operating Cash Flow Ratio | 52.28% |
Cash flow metrics reflect a strong balance with effective reinvestment and shareholder value returns. Overall, the capital efficiency supports long-term strategic growth.
Balance Sheet & Leverage Analysis 🚀
Evaluating Linde's balance sheet reveals a mature leverage strategy. Their Debt-to-Equity Ratio of 0.59 and net debt metrics demonstrate responsible leverage aligned with profitable growth and operational flexibility.
| Metric | Value |
|---|---|
| Debt-to-Equity | 0.59 |
| Debt-to-Assets | 0.28 |
| Debt-to-Capital | 0.37 |
| Net Debt to EBITDA | 1.48 |
| Current Ratio | 0.94 |
| Quick Ratio | 0.75 |
| Financial Leverage | 2.10 |
The balance sheet underscores financial health and liquidity requisite for growth while safeguarding against macroeconomic upheavals.
Fundamental Strength & Profitability 📉
Metric-driven analysis highlights how efficiently Linde plc utilizes assets with a robust Return on Equity of 17.23%. Despite elevated margins, focusing on areas like Research & Development sustains innovative competencies.
| Metric | Value |
|---|---|
| Return on Equity | 17.23% |
| Return on Assets | 7.99% |
| Net Profit Margin | 18.87% |
| EBIT Margin | 27.18% |
| EBITDA Margin | 38.63% |
| Gross Margin | 48.06% |
| R&D to Revenue | 0.45% |
Profitability metrics confirm strategic scalability and revenue enhancement opportunities whilst maintaining core competitive advantage.
Price Development 📈
Dividend Scoring System ✅
| Criterion | Score (out of 5) | |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 4 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 5 |
Total Score: 34 / 40
Rating 🗣️
Linde plc stands out as a reliable income investment with consistent dividends, operational efficiency, and solid financial health. Investors seeking a blend of income and growth will find Linde’s strategic approach and resilience attractive. Overall, it is recommended for conservative investors focusing on stable, long-term returns.