January 23, 2026 a 07:47 am
NTAP: Dividend Analysis - NetApp, Inc.
NetApp, Inc. has shown a stable history of dividend payments over 14 years, with no recent cuts or suspensions. The company offers a moderate dividend yield of 1.95%, supported by a healthy payout ratio. Its consistent growth highlights its ability to maintain dividends even in varying market conditions, making it potentially attractive for dividend-focused investors. 📊
Overview
NetApp operates in the technology sector, offering a dividend yield of 1.95%. With a current dividend per share of 2.08 USD, and an impressive 14-year dividend history, investors can appreciate its reliability. The company has not cut or suspended its dividends recently, ensuring its appeal to income-focused portfolios. 🗣️
| Item | Detail |
|---|---|
| Sector | Technology |
| Dividend yield | 1.95% |
| Current dividend per share | 2.08 USD |
| Dividend history | 14 years |
| Last cut or suspension | None |
Dividend History
The historical dividend analysis of NetApp shows consistent growth over the past few years, emphasizing its commitment to shareholder returns. This reliability boosts investor confidence, particularly during market uncertainties. 📈
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 0.52 |
| 2025 | 2.08 |
| 2024 | 2.04 |
| 2023 | 2.00 |
| 2022 | 2.00 |
Dividend Growth
Consistent dividend growth indicates a company's ability to improve payouts over time. This growth often reflects robust earnings health, especially in stable industries. Tracking such metrics can be useful for predicting future dividend sustainability. 📉
| Time | Growth |
|---|---|
| 3 years | 1.32% |
| 5 years | 1.61% |
The average dividend growth is 1.61% over 5 years. This shows moderate but steady dividend growth, suggesting financial resilience. ✅
Payout Ratio
Payout ratios reveal the proportion of earnings paid to shareholders as dividends, crucial for understanding dividend sustainability. NetApp's ratios suggest low risk of dividend cuts, ensuring good long-term security for income investors. 🗣️
| Key figure | Ratio |
|---|---|
| EPS-based | 35.14% |
| Free cash flow-based | 24.75% |
The EPS-based payout of 35.14% and FCF-based payout of 24.75% imply a conservative approach to dividend distribution, preserving enough financial flexibility and ensuring continued investor payouts. ⚠️
Cashflow & Capital Efficiency
Cash flow and capital efficiency are critical indicators of financial health and efficiency of operations. Analyzing them helps evaluate the liquidity and strategic financial flexibility of NetApp. 📈
| Year | 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 | 11.15% | 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's strong cash flow metrics and capital efficiency highlight its capability to deploy resources effectively, ensuring strategic growth and shareholder returns. ✅
Balance Sheet & Leverage Analysis
NetApp's balance sheet highlights the debt structure and financial leverage, essential in assessing the company's financial stability and risk profile. These metrics provide insight into liquidity management and debt servicing capacity. 🗣️
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 335.67% | 231.41% | 231.58% |
| Debt-to-Assets | 32.26% | 26.82% | 27.34% |
| Debt-to-Capital | 77.05% | 69.83% | 69.84% |
| Net Debt to EBITDA | 38.58% | 47.35% | 25.66% |
| Current Ratio | 1.25 | 1.19 | 1.35 |
| Quick Ratio | 1.22 | 1.15 | 1.30 |
| Financial Leverage | 10.41 | 8.63 | 8.47 |
Strategies to enhance leverage and liquidity indicate NetApp's focus on maintaining robust financial health despite its high leverage ratios. Such actions safeguard against financial risks while promoting operational agility. ⚠️
Fundamental Strength & Profitability
Understanding the core profitability and efficiency metrics is key to gauging NetApp's operational and financial competitiveness. These indicators reflect management effectiveness in resource utilization and profitability enhancement. 📈
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 114.04% | 86.04% | 109.92% |
| Return on Assets | 10.96% | 9.97% | 12.98% |
| Return on Invested Capital | 16.49% | 15.23% | 15.91% |
| 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 | 15.40% | 16.42% | 15.03% |
NetApp's strong profitability metrics and efficient use of resources underscore its intrinsic strength, ensuring it remains competitive in a rapidly evolving technological landscape. ✅
Price Development
Dividend Scoring System
| Category | Score (1-5) | Score Progress |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 4 | |
| Dividend growth | 3 | |
| Payout ratio | 4 | |
| Financial stability | 3 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 3 |
Total Score: 29/40
Rating
Overall, NetApp impresses with its solid dividend fundamentals, underpinned by a sustainable payout ratio and strong financial metrics. While the dividend growth is moderate, its stability and financial robustness make it a commendable choice for conservative dividend investors. ⚠️