April 13, 2025 a 02:46 am
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NXPI: Dividend Analysis - NXP Semiconductors N.V.
NXP Semiconductors N.V. exhibits a solid dividend profile characterized by a moderate yield and consistent dividend increase over the last five years. The company's financial stability and payout ratios suggest a well-maintained balance between retained earnings and shareholder rewards, making it an appealing choice for dividend-focused investors.
Overview
NXP Semiconductors operates within the semiconductor sector, offering a dividend yield of approximately 1.96%. The current annual dividend per share is $4.07, and the company has maintained a continuous dividend history over the last 8 years, with no recent cuts or suspensions.
| Detail | Value |
|---|---|
| Sector | Semiconductors |
| Dividend Yield | 1.96% |
| Current Dividend per Share | $4.07 USD |
| Dividend History | 8 years |
| Last Cut or Suspension | None |
Dividend History
The consistency and growth in dividend payments over the years reflect NXP Semiconductors' commitment to returning value to its shareholders. Tracking this history is essential for assessing the company's reliability in terms of dividend continuity.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 1.014 |
| 2024 | 4.056 |
| 2023 | 4.056 |
| 2022 | 3.380 |
| 2021 | 2.250 |
Dividend Growth
NXP Semiconductors' dividend growth is an indicator of its financial health and strategic allocation of earnings. Historical growth figures assist investors in predicting future trends and evaluating the robustness of dividend policies.
The average dividend growth is 26.5% over 5 years, demonstrating moderate but steady dividend growth.
| Time | Growth |
|---|---|
| 3 years | 21.7% |
| 5 years | 26.5% |
🗣️Payout Ratio
A balanced payout ratio illustrates how well a company can cover its dividends with net income and free cash flow, ensuring sustainability and room for potential dividend increases.
| Key Figure | Ratio |
|---|---|
| EPS-based | 41.22% |
| Free Cash Flow-based | 49.89% |
The EPS payout ratio of 41.22% and the FCF payout ratio of 49.89% indicate a healthy dividend payout strategy backed by solid earnings and cash flows.
💼Cashflow & Capital Efficiency
Analyzing cash flow metrics provides insights into operational efficiency and financial stability. Positive cash flow and efficient capital allocation are crucial for supporting dividend policies and ongoing business investments.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 5.24% | 4.22% | 6.45% |
| Earnings Yield | 4.73% | 4.71% | 6.73% |
| CAPEX to Operating Cash Flow | 25.51% | 28.64% | 31.50% |
| Stock-based Compensation to Revenue | 3.65% | 3.10% | 2.76% |
| Free Cash Flow / Operating Cash Flow Ratio | 100% | 71.36% | 68.50% |
These figures highlight NXP Semiconductors' capability to generate consistent free cash flow, ensuring the maintenance of its dividend payout strategy while engaging in capital investments efficiently.
📉Balance Sheet & Leverage Analysis
The balance sheet and leverage ratios are fundamental in assessing a company's financial stability and risk exposure. NXP's current leverage metrics indicate manageable debt levels and strong liquidity positions.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 118.20% | 129.28% | 149.89% |
| Debt-to-Assets | 44.51% | 45.89% | 48.05% |
| Debt-to-Capital | 54.17% | 56.39% | 59.98% |
| Net Debt to EBITDA | 1.71 | 1.49 | 1.45 |
| Current Ratio | 2.36 | 1.91 | 2.12 |
| Quick Ratio | 1.60 | 1.39 | 1.58 |
| Financial Leverage | 2.66 | 2.82 | 3.12 |
The balance sheet metrics suggest NXP Semiconductors maintains strong liquidity and prudent leverage, allowing it to handle its obligations successfully and sustain its operations during economic fluctuations.
📈Fundamental Strength & Profitability
NXP's profitability indicators, such as ROE and ROA, coupled with healthy margins, reflect its capability to generate profits efficiently and invest in value-accretive projects.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 27.33% | 32.36% | 37.41% |
| Return on Assets | 10.29% | 11.49% | 11.99% |
| Margins: Net | 19.90% | 21.07% | 21.11% |
| Margins: EBIT | 27.72% | 28.55% | 28.70% |
| Margins: EBITDA | 35.06% | 36.88% | 38.17% |
| Margins: Gross | 56.44% | 56.89% | 56.93% |
| Research & Development to Revenue | 18.61% | 18.21% | 16.27% |
These profitability metrics highlight NXP's strong operational performance and strategic focus on innovation and market competitiveness.
📊Price Development
🔍Dividend Scoring System
| Category | Score | Score Bar |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 4 | |
| Dividend Growth | 4 | |
| Payout Ratio | 4 | |
| Financial Stability | 5 | |
| Dividend Continuity | 4 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 5 |
Total Score: 33 out of 40
⭐Rating
NXP Semiconductors earns a strong dividend rating due to its robust financial health, sustainable payout ratios, and consistent dividend growth. It remains a compelling choice for investors prioritizing dividend security and growth, while maintaining a balanced exposure to market risks.