March 19, 2026 a 11:31 am
PH: Dividend Analysis - Parker-Hannifin Corporation
Parker-Hannifin Corporation exhibits a reliable dividend profile with an extensive history of payments, signaling stability and shareholder-centric policies. Its calculated dividend yield is modest, but the firm shows a commitment to steady growth, making it a potential candidate for income-focused portfolios considering long-term investment horizons.
📊 Overview
The company's performance in the market indicates a stable position within its sector. The consistent dividend history and strategies bolster investor confidence.
| Metric | Value |
|---|---|
| Sector | Industrial |
| Dividend yield | 0.74 % |
| Current dividend per share | 6.71 USD |
| Dividend history | 42 years |
| Last cut or suspension | None |
🔍 Dividend History
The dividend history showcases a remarkable streak of payments, reflecting the company's commitment to returning value to shareholders over decades. This aspect significantly contributes to its attractiveness for dividend investors.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 1.80 |
| 2025 | 7.03 |
| 2024 | 6.37 |
| 2023 | 5.77 |
| 2022 | 5.02 |
📈 Dividend Growth
Analysis of the dividend growth is crucial in evaluating a company's potential to sustain increasing payouts. Current trends suggest moderate increases supported by strategic financial management.
| Time | Growth |
|---|---|
| 3 years | 11.88 % |
| 5 years | 14.84 % |
The average dividend growth is 14.84 % over 5 years. This shows moderate but steady dividend growth.
💵 Payout Ratio
The payout ratio is an essential indicator of financial flexibility and the company's ability to retain earnings for future growth while providing dividends. Parker-Hannifin presents sustainable payout ratios, reinforcing its potential for long-term income growth.
| Key Figure | Ratio |
|---|---|
| EPS-based | 23.94 % |
| Free cash flow-based | 25.36 % |
These ratios suggest that Parker-Hannifin maintains a conservative distribution of its earnings and cash flow, leaving room for reinvestment and growth.
💰 Cashflow & Capital Efficiency
Assessing cash flow and capital efficiency helps determine a company's operational health and investment viability. Parker-Hannifin demonstrates stable cash flow metrics and capital efficiency ratios, indicating prudent financial management.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 3.73 % | 4.64 % | 5.19 % |
| Earnings Yield | 3.94 % | 4.42 % | 4.16 % |
| CAPEX to Operating Cash Flow | 11.52 % | 11.82 % | 12.78 % |
| Stock-based Compensation to Revenue | 0.80 % | 0.78 % | 0.75 % |
| Free Cash Flow / Operating Cash Flow Ratio | 88.48 % | 88.18 % | 87.22 % |
Parker-Hannifin's cash flow and capital efficiency indicate robust operational health, supporting its capacity for sustained investments in growth and shareholder returns.
📝 Balance Sheet & Leverage Analysis
The company's balance sheet health and leverage ratios are vital in evaluating financial stability and risk exposure. Parker-Hannifin demonstrates balanced leverage, ensuring stability and risk mitigation.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 0.70 | 0.91 | 1.26 |
| Debt-to-Assets | 0.33 | 0.37 | 0.43 |
| Debt-to-Capital | 0.41 | 0.48 | 0.56 |
| Net Debt to EBITDA | 1.69 | 2.10 | 3.07 |
| Current Ratio | 1.19 | 0.93 | 0.88 |
| Quick Ratio | 0.71 | 0.55 | 0.51 |
| Financial Leverage | 2.16 | 2.43 | 2.90 |
The observed leverage ratios affirm Parker-Hannifin’s prudent financial strategy, maintaining a smooth operational capability with manageable debt levels.
📈 Fundamental Strength & Profitability
Examining fundamental strength and profitability metrics unveils insights into operational effectiveness and competitive positioning. Parker-Hannifin showcases robust profitability indicators.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 25.81 % | 23.56 % | 20.17 % |
| Return on Assets | 11.97 % | 9.71 % | 6.95 % |
| Margins: Net | 17.79 % | 14.27 % | 10.93 % |
| Margins: EBIT | 22.75 % | 20.58 % | 17.07 % |
| Margins: EBITDA | 27.32 % | 25.23 % | 21.36 % |
| Margins: Gross | 36.85 % | 35.91 % | 33.88 % |
| Research & Development to Revenue | 1.21 % | 1.27 % | 1.35 % |
Parker-Hannifin’s profitability metrics underscore its operational excellence and competitive market position, indicating sustained value creation potential.
🔍 Price Development
🗣️ Dividend Scoring System
| Category | Score | Score Bar |
|---|---|---|
| Dividend yield | 3/5 | |
| Dividend Stability | 5/5 | |
| Dividend growth | 4/5 | |
| Payout ratio | 4/5 | |
| Financial stability | 4/5 | |
| Dividend continuity | 5/5 | |
| Cashflow Coverage | 4/5 | |
| Balance Sheet Quality | 4/5 |
Total Score: 33/40
🌟 Rating
Parker-Hannifin Corporation merits a strong investment consideration due to its robust dividend payout history, sustainable growth rates, and sound financial management. Investors seeking long-term dividends and moderate growth might find this stock suitable for their portfolios given its commendable stability and solid fundamentals.