June 25, 2025 a 12:46 pm
NXPI: Dividend Analysis - NXP Semiconductors N.V.
NXP Semiconductors N.V. presents itself as a robust option for dividend investors, maintaining a steady payout over the last eight years. Despite a moderate dividend yield, the company shows promising signs of growth and stability. Its payout ratios indicate room for sustainable dividend growth, strengthening investor confidence in ongoing returns. Financial health and efficiency ratios suggest NXP is well-positioned, making it a compelling case for those who prioritize dividend income and capital growth prospects.
📊 Overview
| Key Metric | Details |
|---|---|
| Sector | Technology |
| Dividend Yield | 1.86 % |
| Current Dividend Per Share | 4.07 USD |
| Dividend History | 8 years |
| Last Cut or Suspension | None |
📈 Dividend History
The dividend history highlights the company's commitment to returning value to shareholders over the last eight years. Important for investors, it reflects stability and resilience in its dividend policy, crucial for long-term yield appreciation.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 2.028 |
| 2024 | 4.056 |
| 2023 | 4.056 |
| 2022 | 3.380 |
| 2021 | 2.250 |
📉 Dividend Growth
Dividend growth is a vital indicator of a company's ability to increase shareholder value over time. NXP's growth signals solid financial health and confidence in future earnings.
| Time | Growth |
|---|---|
| 3 years | 21.70 % |
| 5 years | 26.54 % |
The average dividend growth is 26.54% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
Payout ratios provide insight into how sustainable a dividend is in relation to a company's earnings (EPS) and free cash flow (FCF). Lower ratios typically indicate a more sustainable dividend.
| Key Figure | Ratio |
|---|---|
| EPS-based | 43.71 % |
| Free cash flow-based | 60.10 % |
The EPS-based payout ratio of 43.71% and FCF-based ratio of 60.10% indicate a dividend policy well supported by the company's earnings and cash flow.
🗣️ Cashflow & Capital Efficiency
Cash flow and capital efficiency metrics are crucial for understanding the sustainability of a company's capital expenditures and overall financial health.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 3.59 % | 4.22 % | 6.45 % |
| Earnings Yield | 4.73 % | 4.71 % | 6.73 % |
| CAPEX to Operating Cash Flow | 31.33 % | 28.64 % | 31.50 % |
| Stock-based Compensation to Revenue | 3.76 % | 3.10 % | 2.76 % |
| FCF/Operating Cash Flow Ratio | 68.51 % | 71.36 % | 68.50 % |
NXP's cash flow and capital efficiency remain robust, highlighted by a healthy FCF yield and well-managed capital expenditures, indicating strong operating efficiency.
📊 Balance Sheet & Leverage Analysis
Analyzing the balance sheet provides insights into the company's financial stability, liquidity, and ability to manage debt burdens effectively.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 1.18 | 1.29 | 1.50 |
| 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 | 2.09 | 1.91 | 2.12 |
| Quick Ratio | 1.60 | 1.39 | 1.58 |
| Financial Leverage | 2.65 | 2.82 | 3.12 |
The balance sheet metrics suggest that NXP maintains solid financial stability and effective leverage management, conducive to sustaining long-term growth.
🗣️ Fundamental Strength & Profitability
Fundamental strength and profitability ratios indicate the ability of NXP to generate returns and efficiently manage its operations.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 27.33 % | 32.36 % | 37.41 % |
| Return on Assets | 10.29 % | 11.49 % | 11.99 % |
| Net Profit Margin | 19.90 % | 21.07 % | 21.11 % |
| EBIT Margin | 27.72 % | 28.55 % | 28.70 % |
| EBITDA Margin | 35.06 % | 36.88 % | 38.17 % |
| Gross Margin | 56.44 % | 56.89 % | 56.93 % |
| R&D to Revenue | 18.60 % | 18.21 % | 16.27 % |
NXP's profitability indicators showcase a strong capacity for earnings generation. Returns on equity and assets demonstrate effective asset utilization and management proficiency.
📈 Price Development
🎯 Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 4 | |
| Dividend Growth | 4 | |
| Payout Ratio | 4 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Overall Score: 32/40
⚠️ Rating
NXP Semiconductors N.V. is rated as a strong dividend payer with potential for growth and sustainability. Investors seeking steady income along with a prospect for capital appreciation might find this an attractive option. While the yield could be higher, strong financial metrics indicate potential for future dividend increases.