Rollins, Inc. presents a reliable dividend profile with a stable history of payouts spanning over four decades. The company's consistent and moderate dividend growth, coupled with a healthy payout ratio, makes it an attractive option for dividend-focused investors. Despite a somewhat modest dividend yield, the company's financial strength and operational efficiency further support its dividend sustainability.
Rollins, Inc. operates in a sector known for its stability and cash-generation capability, which is evident from its reliable dividend track record.
| Parameter | Details |
|---|---|
| Sector | Consumer Services |
| Dividend Yield | 1.18% |
| Current Dividend per Share | 0.68 USD |
| Dividend History | 42 years |
| Last Cut or Suspension | None |
The company's dividend history is a testament to its commitment to shareholder returns, with consistent payouts even during challenging economic environments.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 0.1825 |
| 2025 | 0.6775 |
| 2024 | 0.615 |
| 2023 | 0.54 |
| 2022 | 0.43 |
Consistent dividend growth reflects the company's robust financial health and commitment to returning shareholder value.
| Time | Growth |
|---|---|
| 3 years | 16.36% |
| 5 years | 15.71% |
The average dividend growth is 15.71% over 5 years. This shows moderate but steady dividend growth.
The payout ratio is crucial for assessing the sustainability of the dividend policy. A balanced ratio suggests sufficient earnings retention for business growth.
| Key Figure | Ratio |
|---|---|
| EPS-based | 62.08% |
| Free Cash Flow-based | 50.13% |
The EPS-based payout ratio of 62.08% and FCF-based ratio of 50.13% indicate a well-maintained balance, supporting dividend payments without compromising growth investments.
Cash flow generation and capital efficiency are critical indicators of a company's operational strength and its ability to sustain and grow dividends.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Free Cash Flow Yield | 2.32% | 2.58% | 2.24% |
| Earnings Yield | 2.03% | 2.08% | 1.81% |
| CAPEX to Operating Cash Flow | 6.14% | 4.54% | 4.14% |
| Stock-based Compensation to Revenue | 0.80% | 0.88% | 0% |
| Free Cash Flow / Operating Cash Flow Ratio | 93.86% | 95.46% | 95.86% |
The company exhibits solid cash flow stability and efficient capital allocation, indicating robust dividend coverage and potential for future growth.
A strong balance sheet with manageable leverage enhances a company's ability to maintain its dividend policy, even in economic downturns.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Debt-to-Equity | 70.64% | 61.07% | 96.69% |
| Debt-to-Assets | 31.45% | 28.82% | 42.31% |
| Debt-to-Capital | 41.40% | 37.91% | 49.16% |
| Net Debt to EBITDA | 1.04 | 0.94 | 1.44 |
| Current Ratio | 0.71 | 0.69 | 0.60 |
| Quick Ratio | 0.65 | 0.62 | 0.55 |
| Financial Leverage | 2.25 | 2.12 | 2.29 |
Rollins, Inc.'s moderate leverage and liquidity ratios indicate a sound financial base, ensuring dividend security.
Analyzing the company's return ratios and margin levels provides insights into its profitability and the efficiency of its operations.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Return on Equity | 37.64% | 35.05% | 38.32% |
| Return on Assets | 16.76% | 16.54% | 16.77% |
| Margins: Net | 14.15% | 13.76% | 14.00% |
| Margins: EBIT | 19.15% | 19.39% | 19.39% |
| Margins: EBITDA | 22.39% | 22.74% | 22.71% |
| Margins: Gross | 52.17% | 52.69% | 49.44% |
| Research & Development to Revenue | 0% | 0% | 0% |
Strong return metrics and healthy margins reflect the company's robust earning capabilities, supporting its dividend policy and potential for growth.
| Criteria | Score | Score Indicator |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 4 | |
| Payout Ratio | 4 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 33 out of 40
Rollins, Inc. exhibits a strong dividend profile characterized by stability and historical reliability. Despite a modest yield, its impressive financial metrics and consistent growth trajectory render it a solid choice for income-focused investors. Continued monitoring is recommended to assess its potential for dividend enhancement in line with financial performance.
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