August 13, 2025 a 03:31 pm
LIN: Dividend Analysis - Linde plc
Linde plc demonstrates a robust dividend profile backed by a consistent dividend history of 34 years without any recent cuts or suspensions. Its current dividend yield stands at 1.24%, and its strong financial metrics showcase solid dividend coverage and potential for future growth. The company's strategic approach to dividends, combined with its financial stability, makes it a viable option for income-focused investors.
📊 Overview
| Metric | Value |
|---|---|
| Sector | Materials |
| Dividend yield | 1.24% |
| Current dividend per share | 5.545 USD |
| Dividend history | 34 years |
| Last cut or suspension | None |
🗣️ Dividend History
The dividend history is an essential aspect of evaluating a company's commitment to returning value to shareholders. Linde plc’s consistent dividend payments over the years illustrate a dedication to maintaining and growing dividends, reassuring income investors.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 4.50 |
| 2024 | 5.56 |
| 2023 | 5.10 |
| 2022 | 4.68 |
| 2021 | 4.24 |
📈 Dividend Growth
Dividend growth metrics provide insight into a company's ability to increase shareholder value over time. Linde plc has shown moderate yet steady growth, indicating a sound financial strategy and potential for future expansions.
| Time | Growth |
|---|---|
| 3 years | 9.46% |
| 5 years | 9.70% |
The average dividend growth is 9.7% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
The payout ratio is a crucial measure of dividend sustainability. Linde plc’s EPS-based payout ratio of 38.89% and FCF-based payout ratio of 51.30% suggest that the company is maintaining a healthy balance between rewarding shareholders and reinvesting in growth.
| Key figure | Ratio |
|---|---|
| EPS-based | 38.89% |
| Free cash flow-based | 51.30% |
A payout ratio well below 50% is generally considered sustainable, suggesting Linde is prudently managing its dividend distributions.
💼 Cashflow & Capital Efficiency
Assessing a company’s cash flow and capital efficiency helps determine their financial health and the effectiveness of their investment strategies. Linde’s cash flow indicators are indicative of a stable financial position and efficient capital utilization.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Free Cash Flow Yield | 3.49% | 2.75% | 2.46% |
| Earnings Yield | 2.54% | 3.09% | 3.28% |
| CAPEX to Operating Cash Flow | 35.80% | 40.70% | 47.72% |
| Stock-based Compensation to Revenue | 0.32% | 0.43% | 0.48% |
| Free Cash Flow / Operating Cash Flow Ratio | 64.20% | 59.30% | 52.28% |
Linde’s capacity to cover its dividends with available cash flow suggests a firm control over its financial resources, promoting a stable cash flow strategy.
⚠️ Balance Sheet & Leverage Analysis
Evaluating the balance sheet and leverage ratios is critical for understanding a company's risk profile and debt management. Linde's conservative leverage ratios indicate a well-managed debt load relative to equity and assets, providing confidence in long-term solvency.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Debt-to-Equity | 0.47 | 0.51 | 0.59 |
| Debt-to-Assets | 23.59% | 25.14% | 28.21% |
| Debt-to-Capital | 31.95% | 33.84% | 37.25% |
| Net Debt to EBITDA | 1.34 | 1.27 | 1.37 |
| Current Ratio | 0.79 | 0.80 | 0.89 |
| Quick Ratio | 0.67 | 0.66 | 0.76 |
| Financial Leverage | 1.99 | 2.03 | 2.10 |
Linde’s stability in its debt ratios and substantial current and quick ratios highlight its ability to manage its liabilities effectively.
🔍 Fundamental Strength & Profitability
Analysing profitability ratios provides insight into operational efficiency and overall financial performance. Linde’s firm profitability ratios suggest a well-executed business model with consistent returns.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Return on Equity | 10.36% | 15.61% | 17.23% |
| Return on Assets | 5.21% | 7.67% | 8.19% |
| Net Margin | 12.43% | 18.87% | 19.89% |
| EBIT Margin | 17.19% | 25.80% | 27.70% |
| EBITDA Margin | 29.79% | 37.41% | 39.15% |
| Gross Margin | 29.10% | 35.14% | 36.61% |
| R&D to Revenue | 0.43% | 0.44% | 0.45% |
Linde's strong return metrics and robust margins demonstrate effective business operations, showcasing its ability to maintain profitability and return value to shareholders.
📉 Price Development
🏆 Dividend Scoring System
| Criterion | Score | Visual |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 5 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 34/40
⭐ Rating
Linde plc exhibits strong financial health with an enviable dividend track record, making it a viable choice for investors seeking a combination of income stability and growth potential. The solid financial footing underscores future dividend sustainability, advocating a positive investment outlook.