July 27, 2026 a 02:46 am
NTAP: Dividend Analysis - NetApp, Inc.
NetApp, Inc., a global leader in data management and storage solutions, presents an attractive dividend profile characterized by stable growth and a solid payout history. With a modest dividend yield paired with a conservative payout ratio, NetApp is positioned as a reliable income provider within the technology sector. Despite occasional market fluctuations, the company's consistent dividend payments over the past 14 years underline its commitment to shareholder returns.
📊 Overview
NetApp, Inc. operates in a dynamic sector but has maintained a steady dividend profile. Its current dividend yield is 1.23%, with a dividend per share of 2.10 USD. The company has a 14-year history of consistent dividend payments, showcasing a robust track record of rewarding investors. Notably, there have been no cuts or suspensions in recent years.
| Details | Values |
|---|---|
| Sector | Technology |
| Dividend yield | 1.23% |
| Current dividend per share | 2.10 USD |
| Dividend history | 14 years |
| Last cut or suspension | None |
🗣️ Dividend History
The sustained dividend payments over 14 years reflect NetApp's financial resilience and commitment to shareholders. This history is crucial as it indicates the company's ability to generate consistent returns, even amid industry headwinds.
| Year | Dividend Per Share (USD) |
|---|---|
| 2026 | 1.56 |
| 2025 | 2.08 |
| 2024 | 2.04 |
| 2023 | 2.00 |
| 2022 | 2.00 |
📈 Dividend Growth
Maintaining a moderate growth trajectory, NetApp reports a 1.32% increase over three years and a 1.61% rise over five years. This growth, albeit modest, suggests careful financial management aligning with industry stability and corporate objectives.
| 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
NetApp's payout ratios are key indicators of its financial strategies. The company maintains an EPS payout ratio of 32.37% and a free cash flow payout ratio of 21.98%, both indicating sustainable dividend practices backed by earnings and cash flow.
| Key figure | Ratio |
|---|---|
| EPS-based | 32.37% |
| Free cash flow-based | 21.98% |
These ratios demonstrate NetApp's disciplined approach in maintaining dividends, reflecting a cautious yet investor-friendly policy amid market volatility.
💰 Cashflow & Capital Efficiency
| 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% |
The data indicates robust capital efficiency and cash flow management, enabling sustainable dividend policies and potential growth in shareholder returns.
🔗 Balance Sheet & Leverage Analysis
| 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 displays strategic balance sheet management, with leverage ratios indicating thoughtful debt management and liquidity setups to sustain operations under varying market conditions.
⚖️ Fundamental Strength & Profitability
| 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% |
| R&D to Revenue | 14.31% | 15.40% | 16.42% |
The financial indicators stress NetApp's strong efficiency and profitability, leveraging research and innovation to sustain robust returns and margins.
📉 Price Development
✅ Dividend Scoring System
| Category | Score | Score Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 4 | |
| Dividend growth | 3 | |
| Payout ratio | 4 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 3 |
Overall Score: 30/40
🗣️ Rating
NetApp, Inc. presents a sound investment opportunity for dividend-focused investors, offering stability and moderate growth. The company's prudent financial management and sustained dividend performance underscore a strong recommendation for investors seeking consistent income and exposure to the technology sector.
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