July 16, 2026 a 02:46 am
NTRS: Dividend Analysis - Northern Trust Corporation
The Northern Trust Corporation presents a compelling dividend profile characterized by steady growth and sustainability. With a legacy of over four decades of consistent dividend history and a moderate yield, the company offers a stable income to investors. Despite modest growth in recent years, its long-term reliability and prudent payout ratios highlight its financial discipline.
📊 Overview
As a key player in the financial services sector, Northern Trust Corporation has demonstrated resilience with a dividend yield of 1.88%, reflecting its capability to provide shareholders with a stable income stream. The recent dividend per share stands at 3.38 USD, underpinning its position as a reliable income source over 41 years without any recent cuts or suspensions.
| Metric | Value |
|---|---|
| Sector | Financial Services |
| Dividend Yield | 1.88% |
| Current Dividend Per Share | 3.38 USD |
| Dividend History | 41 years |
| Last Cut or Suspension | None |
📉 Dividend History
Northern Trust’s inventive spirit in sustaining a consistent dividend payout has enhanced its reputation. The 41-year run without any cuts stands as a testament to the robust nature of its business model. This reliability translates into continuous shareholder value.
| Year | Dividend Per Share (USD) |
|---|---|
| 2026 | 1.6 |
| 2025 | 3.10 |
| 2024 | 3.00 |
| 2023 | 3.00 |
| 2022 | 2.90 |
📈 Dividend Growth
The company's ability to moderately grow dividends by 2.05% over five years reflects its forward-moving business dynamics, ensuring investors not only receive income but also retain purchasing power over time.
| Time | Growth |
|---|---|
| 3 years | 2.25 % |
| 5 years | 2.05 % |
The average dividend growth is 2.05% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
An EPS-based payout ratio of 33.50% and an FCF-based payout ratio of 38.38% exemplify Northern Trust's cautious approach to maintain dividend sustainability while ensuring ample capital for growth and obligations.
| Key figure | Ratio |
|---|---|
| EPS-based | 33.5% |
| Free cash flow-based | 38.38% |
🔍 Cashflow & Capital Efficiency
The cash flow metrics of Northern Trust indicate robust free cash flow capabilities relative to operating cash flow, with prudent capital allocation as evidenced by the low CAPEX commitments.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 21.31% | -5.97% | 11.15% |
| Earnings Yield | 6.78% | 9.85% | 6.33% |
| CAPEX to Operating Cash Flow | 1.33% | -153.40% | 25.74% |
| Stock-based Compensation to Revenue | 0% | 0% | 0% |
| Free Cash Flow / Operating Cash Flow Ratio | 98.66% | 253.40% | 74.26% |
🗣️ Balance Sheet & Leverage Analysis
A commendable liquidity profile alongside manageable leverage, exemplified by a current ratio above 4, underscores Northern Trust's sound financial footing necessary for both risk management and business expansion.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 1.27 | 1.25 | 1.45 |
| Debt-to-Assets | 0.09 | 0.10 | 0.11 |
| Debt-to-Capital | 0.56 | 0.56 | 0.59 |
| Net Debt to EBITDA | -13.90 | -8.70 | -11.34 |
| Current Ratio | 4.26 | 0.45 | 0.54 |
| Quick Ratio | 0.41 | 0.45 | 0.54 |
| Financial Leverage | 13.67 | 12.16 | 12.67 |
🧮 Fundamental Strength & Profitability
Strong profit margins and notable returns on equity and assets denote Northern Trust’s operational efficiency and ability to generate shareholder value effectively amidst diverse market conditions.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 13.40% | 15.88% | 9.31% |
| Return on Assets | 0.98% | 1.31% | 0.73% |
| Net Margin | 12.15% | 12.79% | 9.14% |
| EBIT Margin | 16.30% | 16.75% | 12.09% |
| EBITDA Margin | 22.48% | 21.27% | 17.33% |
| Gross Margin | 56.54% | 52.24% | 55.70% |
🔍 Price Development
🏆 Dividend Scoring System
| Criteria | Score | Bar |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout Ratio | 4 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 3 |
Overall Score: 31/40
🛡️ Rating
Northern Trust Corporation is a sound choice for dividend investors seeking stability and reliable income, backed by strong financials and prudent management practices. The company's financial health supports its ability to sustain and potentially grow its dividend, making it a viable component for any income-focused portfolio.
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