November 10, 2025 a 03:31 pm
NTAP: Dividend Analysis - NetApp, Inc.
NetApp, Inc. has a solid position in its industry with a promising dividend profile that offers a stable return. While the dividend yield of 1.75% is modest, the company displays consistency in its dividend payments over 13 years. With a low payout ratio, NetApp's dividends appear sustainable with room for growth. The company balances its capital returns efficiently without compromising on growth investments.
📊 Overview
| Metric | Value |
|---|---|
| Sector | Technology |
| Dividend Yield | 1.75% |
| Current Dividend Per Share | 2.08 USD |
| Dividend History | 13 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
NetApp's dividend history over the last 13 years is a testament to its commitment to shareholders. This track record of consistent dividend payments illustrates financial stability and careful capital allocation.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 2.08 |
| 2024 | 2.04 |
| 2023 | 2.00 |
| 2022 | 2.00 |
| 2021 | 1.96 |
📈 Dividend Growth
Dividend growth is a crucial indicator of a company's future potential to increase shareholder value. NetApp's dividend growth over the past 3 and 5 years further reinforces its stability.
| Time | Growth |
|---|---|
| 3 years | 1.34% |
| 5 years | 2.99% |
The average dividend growth is 2.99% over 5 years. This shows moderate but steady dividend growth.
💼 Payout Ratio
The payout ratio measures the proportion of earnings a company pays to shareholders in dividends. It's a critical indicator of dividend sustainability.
| Key figure ratio | Value |
|---|---|
| EPS-based | 35.68% |
| Free cash flow-based | 25.02% |
With a low EPS-based payout ratio of 35.68% and an even lower FCF-based ratio of 25.02%, NetApp sustains sufficient earnings and cash flow to cover its dividends comfortably, suggesting a conservative payout policy.
📊 Cashflow & Capital Efficiency
Analyzing cash flows and capital efficiency metrics provides insight into how effectively a company manages its resources to support ongoing dividend payments.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 7.31% | 7.20% | 6.28% |
| Earnings Yield | 6.48% | 4.64% | 9.22% |
| CAPEX to Operating Cash Flow | 11.16% | 9.20% | 21.59% |
| Stock-based Compensation to Revenue | 5.87% | 5.70% | 4.90% |
| Free Cash Flow / Operating Cash Flow Ratio | 88.84% | 90.80% | 78.41% |
NetApp maintains strong cash flow metrics, indicating effective management of capital and the ability to support continuous dividend payments.
⚖️ Balance Sheet & Leverage Analysis
Balance sheet analysis focuses on evaluating the company's leverage and liquidity positions, which are vital for understanding its financial health.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 3.36 | 2.31 | 2.32 |
| Debt-to-Assets | 32.26% | 26.82% | 27.34% |
| Debt-to-Capital | 77.05% | 69.83% | 69.84% |
| Net Debt to EBITDA | 0.44 | 0.47 | 0.26 |
| Current Ratio | 1.26 | 1.19 | 1.35 |
| Quick Ratio | 1.22 | 1.15 | 1.30 |
| Financial Leverage | 10.41 | 8.63 | 8.47 |
The analysis reveals NetApp's balanced leverage levels and liquidity ratios, suggesting the company is in a healthy financial position to handle its obligations.
💪 Fundamental Strength & Profitability
Assessing fundamental strength and profitability helps gauge a company's ability to generate returns and sustain dividends over the long term.
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 114.04% | 86.04% | 109.92% |
| Return on Assets | 10.96% | 9.97% | 12.98% |
| Net Margin | 18.05% | 15.73% | 20.03% |
| EBIT Margin | 22.02% | 21.17% | 17.81% |
| EBITDA Margin | 25.72% | 25.24% | 22.54% |
| Gross Margin | 70.19% | 70.72% | 66.16% |
| R&D to Revenue | 15.21% | 16.42% | 15.03% |
NetApp's consistent return on equity and robust margins demonstrate strong performance, underpinning its ability to sustain and grow dividends.
📉 Price Development
✅ Dividend Scoring System
| Category | Description | Score Bar |
|---|---|---|
| Dividend Yield | Moderate | |
| Dividend Stability | 13-year history without cuts | |
| Dividend Growth | 3-5 Year increase | |
| Payout Ratio | Sustainable levels | |
| Financial Stability | Healthy ratios | |
| Dividend Continuity | Secure payment | |
| Cashflow Coverage | Strong coverage | |
| Balance Sheet Quality | Robust structure |
Overall Score: 33/40
🔍 Rating
NetApp, Inc. is rated favorably for dividend investors seeking consistency and stability. The established dividend track record, low payout ratios, and strong cash flows bolster the company's capability to continue rewarding shareholders. While yield is moderate, the financial robustness and growth potential make NetApp a solid choice for adding long-term value to a dividend portfolio.