November 27, 2025 a 12:46 pm
LIN: Dividend Analysis - Linde plc
Linde plc showcases a strong dividend profile with over three decades of uninterrupted dividend payments. Its stability and consistent dividend increase make it an attractive choice for income-focused investors, offering moderate growth potential alongside solid financial metrics. Keep an eye on its financial stability as an indicator of sustainable dividends in the future.
📊 Overview
The Linde plc operates within a robust sector, providing consistent value to its stakeholders. With a dividend yield of 1.47% and a current dividend per share of $5.55, Linde has maintained stable growth with 34 years of dividend history.
| Metric | Value |
|---|---|
| Sector | Gas and Chemical |
| Dividend Yield | 1.47% |
| Current Dividend per Share | 5.55 USD |
| Dividend History | 34 years |
| Last Cut or Suspension | None |
📈 Dividend History
Linde's dividend history demonstrates its commitment to returning value to shareholders. Understanding the historical payout is critical in evaluating the reliability of dividend payments.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 6.00 |
| 2024 | 5.56 |
| 2023 | 5.10 |
| 2022 | 4.68 |
| 2021 | 4.24 |
📈 Dividend Growth
The company has exhibited a consistent dividend growth trend, crucial for income-focused investors. Growth over different time frames provides insights into both short-term and long-term income potential.
| Time | Growth |
|---|---|
| 3 years | 9.45% |
| 5 years | 9.70% |
The average dividend growth is 9.70% over 5 years. This shows moderate but steady dividend growth.
💰 Payout Ratio
Linde's payout ratios provide insight into its ability to maintain and grow dividends by assessing income and cash flow coverage.
| Key Figure | Ratio |
|---|---|
| EPS-based | 36.65% |
| Free Cash Flow-based | 51.01% |
The low EPS payout ratio of 36.65% alongside a moderate FCF payout of 51.01% suggests a sustainable dividend with room for growth.
🏦 Cashflow & Capital Efficiency
Assessing free cash flow and capital efficiency is vital in evaluating the firm’s ability to sustain its financial strategies, including dividends.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Free Cash Flow Yield | 3.49% | 2.75% | 2.46% |
| Earnings Yield | 2.54% | 3.09% | 3.27% |
| 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 | 64.20% | 59.30% | 52.28% |
With consistent cash flow yields and expense management, Linde showcases stable capital efficiency, essential for continued dividend payments and growth.
📊 Balance Sheet & Leverage Analysis
Evaluating the balance sheet and leverage provides clarity on the financial health and long-term sustainability of the company.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Debt-to-Equity | 46.94% | 51.14% | 59.35% |
| 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 | 0.67 | 0.76 |
| Financial Leverage | 1.99 | 2.03 | 2.10 |
Linde maintains a prudent leverage structure with stable financial metrics, indicative of strong financial stability and the capacity to meet its obligations.
📋 Fundamental Strength & Profitability
Core financial metrics reflect business performance, providing insights into operational efficiency and profitability.
| 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% | 35.15% | 36.61% |
| R&D to Revenue | 0.43% | 0.45% | 0.45% |
Solid return metrics and margins indicate Linde's profitability and competitive edge, supporting sustainable growth and dividend payments.
📈 Price Development
🏅 Dividend Scoring System
A comprehensive scoring system to assess the dividend profile based on key metrics.
| Criterion | Score | Score Bar |
|---|---|---|
| Dividend yield | 2 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 4 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 5 |
Overall Score: 33/40
✅ Rating
Linde plc presents a compelling dividend profile with consistent growth and stability. The firm efficiently balances between financial strength and shareholder returns, making it a reliable choice for income-oriented investors seeking firm long-term returns. Recommended as a strong dividend candidate within its sector.