July 11, 2025 a 03:31 pm
MOS: Dividend Analysis - The Mosaic Company
The Mosaic Company offers a compelling dividend profile characterized by a stable payout history. With a current dividend yield of approximately 2.94%, the company shows commitment to shareholder returns. Despite a high payout ratio, the firm's consistently improving financial metrics signal potential for sustainable dividends.
📊 Overview
| Metric | Value |
|---|---|
| Sector | Materials |
| Dividend Yield | 2.94% |
| Current Dividend Per Share | $0.85 USD |
| Dividend History | 34 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
The consistency of Mosaic's dividend history contributes heavily to its investment appeal. The 34-year track record reflects strong corporate governance and a robust operational framework, vital for long-term investors.
| Year | Dividend Per Share |
|---|---|
| 2025 | $0.44 |
| 2024 | $0.84 |
| 2023 | $1.05 |
| 2022 | $0.5625 |
| 2021 | $0.275 |
📈 Dividend Growth
Dividend growth is a key indicator of a company's earnings capability and confidence in future cash flows. While Mosaic has demonstrated moderate growth recently, the overall trend is positive, supporting a steady income stream for investors.
| Time | Growth |
|---|---|
| 3 years | 0.45% |
| 5 years | 0.37% |
The average dividend growth is 0.37% over 5 years. This shows moderate but steady dividend growth.
⚖️ Payout Ratio
Payout ratios illustrate the sustainability of a company's dividend policy. High EPS (72.95%) and FCF (126.36%) payout ratios may insinuate strains on free cash flow, indicating potential risks for dividend sustainability unless operational performance improves.
| Key figure | Ratio |
|---|---|
| EPS-based | 72.95% |
| Free cash flow-based | 126.36% |
💰 Cashflow & Capital Efficiency
Cashflow stability and capital efficiency are imperative for any dividend-paying entity. While Mosaic's free cash flow yield (0.0187) and earnings yield (0.0324) cover dividend payments, maintaining low CAPEX to Operating Cash Flow (0.85) can ensure continuous cash inflows essential for dividend coverage.
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Free Cash Flow Yield | 0.0060 | 0.0849 | 0.1739 |
| Earnings Yield | 0.0222 | 0.0984 | 0.2317 |
| CAPEX to Operating Cash Flow | 0.9635 | 0.5826 | 0.3169 |
| Stock-based Compensation to Revenue | 0.0029 | 0.0028 | 0.0015 |
| Free Cash Flow / Operating Cash Flow Ratio | 0.0365 | 0.4174 | 0.6831 |
The cashflow metrics highlight the firm’s efficiency in capital utilization, indicating a solid operational backbone necessary for enduring dividend distributions.
🏦 Balance Sheet & Leverage Analysis
Leverage and balance sheet assessment is crucial to ascertain the firm's financial stability. Mosaic's moderate debt-to-equity (0.3875) and quick ratio (0.4675) suggest manageable leverage, underpinning a reliable foundation for dividend stability amidst economic fluctuations.
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Debt-to-Equity | 0.3875 | 0.3250 | 0.3005 |
| Debt-to-Assets | 0.1941 | 0.1734 | 0.1549 |
| Debt-to-Capital | 0.2793 | 0.2453 | 0.2310 |
| Net Debt to EBITDA | 2.6590 | 1.4178 | 0.6032 |
| Current Ratio | 0 | 1.2249 | 1.1848 |
| Quick Ratio | 0.4675 | 0.5736 | 0.5446 |
| Financial Leverage | 1.9964 | 1.8741 | 1.9400 |
The leverage ratios reflect a well-balanced structure, enhancing Mosaic’s resilience in supporting consistent dividends throughout varying market conditions.
💥 Fundamental Strength & Profitability
Fundamental and profitability metrics such as the Return on Equity demonstrate the profitability and competitive position of an entity over its competitors. Mosaic's returns, although fluctuating, continue to foster a solid backdrop for prospective dividend enhancements.
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Return on Equity | 0.0152 | 0.0948 | 0.2972 |
| Return on Assets | 0.0076 | 0.0506 | 0.1532 |
| Margins: Net | 0.0157 | 0.0851 | 0.1873 |
| Margins: EBIT | 0.0490 | 0.1106 | 0.2502 |
| Margins: EBITDA | 0.1412 | 0.1878 | 0.2502 |
| Margins: Gross | 0.1359 | 0.1614 | 0.3010 |
| Research & Development to Revenue | 0 | 0 | 0 |
Profitability measures underscore Mosaic's adeptness at leveraging its assets and equity to generate income, sustaining the dividend payouts through profitable growth.
📉 Price Development
✅ Dividend Scoring System
| Category | Score (1-5) |
|---|---|
| Dividend yield | 3 |
| Dividend Stability | 5 |
| Dividend growth | 3 |
| Payout ratio | 2 |
| Financial stability | 4 |
| Dividend continuity | 5 |
| Cashflow Coverage | 3 |
| Balance Sheet Quality | 4 |
Total Score: 29/40
🌟 Rating
With a long-standing history of dividend payments and moderate but stable financial metrics, The Mosaic Company represents a viable option for income-focused investors seeking steady returns amidst fluctuating payouts. While the payout ratios present potential risks, the core business remains robust, underpinned by substantial financial stability. Continuation and growth in dividend payouts may depend on successful operational improvements and streamlining efficiencies.