March 12, 2026 a 07:31 am
LIN: Dividend Analysis - Linde plc
Linde plc has maintained a strong and consistent dividend history, with an impressive 35-year streak without a dividend cut. The current dividend yield stands at 1.27%, reflecting a solid position in the industrial gases sector. With notable dividend growth in both 3 and 5 years, Linde shows a commitment to rewarding its shareholders. Investors might find this stock appealing for long-term returns.
📊 Overview
Linde operates in a dynamic sector offering stable cash flows, supported by a robust dividend policy. The key metrics provide an insight into its financial health and dividend sustainability.
| Metric | Value |
|---|---|
| Sector | Industrial Gases |
| Dividend Yield | 1.27% |
| Current Dividend Per Share | 6.03 USD |
| Dividend History | 35 years |
| Last Cut/Suspension | None |
🗣️ Dividend History
Linde's commitment to dividends is reflected in its extensive dividend history, with consistent increases over the decades. This demonstrates its ability to generate stable cash flows, crucial for income-focused investors.
| Year | Dividend Per Share (USD) |
|---|---|
| 2026 | 1.6 |
| 2025 | 6.0 |
| 2024 | 5.56 |
| 2023 | 5.10 |
| 2022 | 4.68 |
📈 Dividend Growth
The growth in dividends over the past few years illustrates Linde's capacity for financial expansion. Such growth rates are promising indicators of future value appreciation for shareholders.
| Time | Growth |
|---|---|
| 3 years | 8.63% |
| 5 years | 9.27% |
The average dividend growth is 9.27% over 5 years. This shows moderate but steady dividend growth.
⚖️ Payout Ratio
Evaluating the payout ratios helps determine the sustainability of dividend payments. A prudent payout strategy is crucial for maintaining financial flexibility while rewarding shareholders.
| Key figure | Ratio |
|---|---|
| EPS-based | 40.50% |
| Free cash flow-based | 54.90% |
The EPS-based payout ratio of 40.50% is considered healthy, allowing for reinvestment and debt reduction. The FCF ratio at 54.90% reflects the company's capability to return cash to shareholders while maintaining operational efficiency.
💸 Cashflow & Capital Efficiency
An assessment of cash flow and capital allocation efficiency is key for evaluating overall business health and future growth prospects.
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Free Cash Flow Yield | 2.75% | 2.46% | 2.56% |
| Earnings Yield | 3.09% | 3.28% | 3.47% |
| CAPEX to Operating Cash Flow | 40.70% | 47.72% | 50.83% |
| Stock-based Compensation to Revenue | 0.43% | 0.39% | 0.39% |
| Free Cash Flow / Operating Cash Flow Ratio | 59.30% | 52.28% | 49.17% |
Linde's efficient use of capital supports its strategic initiatives, promoting future growth while supporting dividend payouts.
🔍 Balance Sheet & Leverage Analysis
Analyzing leverage and balance sheet components helps indicate the company's financial resilience, crucial in volatile economic conditions.
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Debt-to-Equity | 0.511 | 0.594 | 0.706 |
| Debt-to-Assets | 0.251 | 0.282 | 0.311 |
| Debt-to-Capital | 0.338 | 0.372 | 0.414 |
| Net Debt to EBITDA | 1.273 | 1.374 | 1.694 |
| Current Ratio | 0.803 | 0.890 | 0.877 |
| Quick Ratio | 0.668 | 0.756 | 0.742 |
| Financial Leverage | 2.035 | 2.104 | 2.270 |
Linde demonstrates strong financial policies with manageable debt levels, ensuring operational flexibility and financial stability.
📉 Fundamental Strength & Profitability
Reviewing fundamental strength and profitability ratios reveals the operational efficacy and overall business health of the company.
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Return on Equity | 15.61% | 17.23% | 18.04% |
| Return on Assets | 7.67% | 8.19% | 7.95% |
| Margins: Net | 18.87% | 19.89% | 20.30% |
| Margins: EBIT | 25.80% | 27.70% | 27.02% |
| Margins: EBITDA | 37.41% | 39.15% | 38.09% |
| Margins: Gross | 35.14% | 36.61% | 43.33% |
| R&D to Revenue | 0.44% | 0.45% | 0.43% |
Linde's robust profitability metrics indicate efficient operations and strong competitive positioning within its sector.
📈 Price Development
📊 Dividend Scoring System
| Category | Score | Chart |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 4 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 33/40
✅ Rating
Based on Linde's comprehensive financial and dividend analysis, it holds a solid position with steady growth and reliable dividend history. This makes it an attractive option for investors seeking stable income with potential for long-term capital appreciation.