July 17, 2026 a 11:31 am
NTAP: Dividend Analysis - NetApp, Inc.
NetApp, Inc. offers investors a decent dividend profile characterized by moderate growth and stable payouts. With a consistent dividend history of 14 years, NetApp presents a lower yield compared to industry averages but compensates with a solid financial foundation and reasonable payout ratios.
📊 Overview
NetApp, Inc., operates in the technology sector, providing investors with a dividend yield of 1.23%. While this yield is modest, the company maintains a current dividend per share of $2.10 USD and boasts a 14-year history of dividend payments without any cuts or suspensions, indicating strong commitment to shareholders.
| Metric | Value |
|---|---|
| Sector | Technology |
| Dividend Yield | 1.23% |
| Current dividend per share | 2.10 USD |
| Dividend history | 14 years |
| Last cut or suspension | None |
📈 Dividend History
Historically, NetApp, Inc. has demonstrated reliability in its dividend payments. Reviewing recent distributions provides insights into the company's commitment to maintaining shareholder value.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 1.56 |
| 2025 | 2.08 |
| 2024 | 2.04 |
| 2023 | 2.00 |
| 2022 | 2.00 |
📉 Dividend Growth
Dividend growth is a critical indicator of a company's future payout capabilities. NetApp exhibits moderate growth over 3 and 5 years, signaling a steady, albeit slow, increase in annual distributions.
| 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.
✅ Payout Ratio
Payout ratios are essential for understanding how a company distributes its profits and cash flow. A lower payout ratio often signifies room for dividend growth.
| Key figure | Ratio |
|---|---|
| EPS-based | 32.37% |
| Free cash flow-based | 21.98% |
The EPS-based payout ratio of 32.37% and the FCF-based payout ratio of 21.98% reflect a manageable distribution, indicating a sustainable dividend policy and potential for future increases.
📊 Cashflow & Capital Efficiency
Assessing cash flow and capital efficiency provides insights into a company's ability to fund operations, investments, and dividends without incurring excessive debt.
| Year | 2026 | 2025 | 2024 |
|---|---|---|---|
| Free Cash Flow Yield | 8.73% | 7.31% | 7.20% |
| Earnings Yield | 5.96% | 6.48% | 4.64% |
| CAPEX to Operating Cash Flow | 9.58% | 11.16% | 9.20% |
| Stock-based Compensation to Revenue | 5.52% | 5.87% | 5.70% |
| Free Cash Flow / Operating Cash Flow Ratio | 90.42% | 88.84% | 90.80% |
NetApp demonstrates solid cash flow stability with a high free cash flow/operating cash flow ratio, underlining its strong capacity to support dividend payments and investments.
⚠️ Balance Sheet & Leverage Analysis
The health of the balance sheet provides a snapshot of the company's leverage, liquidity, and financial stability.
| Year | 2026 | 2025 | 2024 |
|---|---|---|---|
| Debt-to-Equity | 2.02 | 3.36 | 2.31 |
| Debt-to-Assets | 0.25 | 0.32 | 0.27 |
| Debt-to-Capital | 0.67 | 0.77 | 0.70 |
| Net Debt to EBITDA | 0.34 | 0.44 | 0.47 |
| Current Ratio | 1.44 | 1.26 | 1.19 |
| Quick Ratio | 1.39 | 1.22 | 1.15 |
| Financial Leverage | 7.95 | 10.41 | 8.63 |
NetApp maintains a manageable level of debt relative to equity and assets, suggesting good financial stability and sufficient liquidity to handle obligations.
🗣️ Fundamental Strength & Profitability
Understanding fundamental strength and profitability ratios assists in evaluating the company's overall performance and the efficiency of its profit generation.
| Year | 2026 | 2025 | 2024 |
|---|---|---|---|
| Return on Equity | 94.45% | 114.04% | 86.04% |
| Return on Assets | 11.88% | 10.96% | 9.97% |
| Net Margin | 18.43% | 18.05% | 15.73% |
| EBIT Margin | 24.97% | 22.02% | 21.17% |
| EBITDA Margin | 27.86% | 25.72% | 25.24% |
| Gross Margin | 70.74% | 70.19% | 70.72% |
| Research & Development to Revenue | 14.31% | 15.40% | 16.42% |
With strong returns on equity and assets, NetApp validates its operational efficiency and profit-generating ability, further supporting its investment in research & development and sustaining competitive advantage.
💸 Price Development
🌟 Dividend Scoring System
| Category | Score (out of 5) | Score Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 4 | |
| Dividend growth | 3 | |
| Payout ratio | 5 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Overall Score: 32/40
🔍 Rating
In conclusion, NetApp, Inc. delivers a solid performance as a dividend-paying company. While the dividend yield is lower, the consistency and financial health support its dividend reliability. With an overall score of 32 out of 40, it is a viable choice for investors seeking dependable income with balanced growth potential.
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