June 11, 2026 a 03:31 am
SJM: Dividend Analysis - The J. M. Smucker Company
The J. M. Smucker Company showcases a robust dividend profile with a history of consistent payments and moderate growth. However, their recent earnings volatility raises caution regarding dividend sustainability. With a substantial market cap and a storied legacy of dividend continuity, it remains an intriguing option for income-focused investors, despite some financial headwinds.
Overview 📊
The dividend profile of The J. M. Smucker Company reflects a stable income strategy with long-standing credibility in the consumer staples sector.
| Metric | Detail |
|---|---|
| Sector | Consumer Staples |
| Dividend Yield | 4.38 % |
| Current Dividend Per Share | 4.36 USD |
| Dividend History | 33 years |
| Last Cut/Suspension | None |
Dividend History 📈
A consistent payout record enhances investor confidence, reflecting stability and reliability. However, historical dividends must be balanced against recent EPS performance to ensure ongoing feasibility.
| Year | Dividend Per Share (USD) |
|---|---|
| 2026 | 2.2 |
| 2025 | 4.36 |
| 2024 | 4.28 |
| 2023 | 4.16 |
| 2022 | 4.02 |
Dividend Growth 📊
Examining dividend growth highlights the company's ability to enhance shareholder value over time, despite financial fluctuations.
| Time | Growth |
|---|---|
| 3 years | 2.74 % |
| 5 years | 4.14 % |
The average dividend growth is 4.14 % over 5 years. This shows moderate but steady dividend growth.
Payout Ratio 🗣️
The payout ratio analysis provides insight into the sustainability of dividends relative to earnings and cash flow, which is critical for assessing financial health.
| Key figure | Ratio |
|---|---|
| EPS-based | -335.04 % |
| Free cash flow-based | 40.17 % |
The EPS-based payout ratio indicates potential unsustainability, but the FCF ratio shows a more secure basis for dividends.
Cashflow & Capital Efficiency 📉
Thorough analysis of cash flow metrics signifies the company's liquidity strength and capital management efficiency, guiding long-term strategic decisions.
| Metric | 2026 | 2025 | 2024 |
|---|---|---|---|
| Free Cash Flow Yield | 11.05 % | 6.60 % | 5.38 % |
| Earnings Yield | -1.33 % | -9.95 % | 6.22 % |
| CAPEX to Operating Cash Flow | 21.54 % | 32.53 % | 47.71 % |
| Stock-based Compensation to Revenue | 0.26 % | 0.34 % | 0.29 % |
| Free Cash Flow / Operating Cash Flow Ratio | 78.46 % | 67.47 % | 52.29 % |
| Return on Invested Capital | 2.53 % | -4.33 % | 5.37 % |
Continued monitoring of cash flows and return measures reveals mixed signals on efficiency and liquidity management over the past years.
Balance Sheet & Leverage Analysis ⚠️
Leverage ratios and balance sheet metrics help determine financial structure robustness and risk exposure concerning liabilities.
| Metric | 2026 | 2025 | 2024 |
|---|---|---|---|
| Debt-to-Equity | 1.28 | 1.28 | 1.11 |
| Debt-to-Assets | 0.44 | 0.44 | 0.42 |
| Debt-to-Capital | 0.56 | 0.56 | 0.53 |
| Net Debt to EBITDA | 13.28 | -49.43 | 5.02 |
| Current Ratio | 0.78 | 0.81 | 0.52 |
| Quick Ratio | 0.33 | 0.35 | 0.25 |
| Financial Leverage | 2.93 | 2.89 | 2.63 |
High debt to EBITDA levels raise concerns about leverage, necessitating careful financial management to maintain solvency.
Fundamental Strength & Profitability 🏦
Scrutinizing profitability margins and returns on key financial metrics can pinpoint operational efficiency and compel strategic focus areas.
| Metric | 2026 | 2025 | 2024 |
|---|---|---|---|
| Return on Equity | -2.50 % | -20.23 % | 9.67 % |
| Return on Assets | -0.86 % | -7.01 % | 3.67 % |
| Net Margin | -1.53 % | -14.10 % | 9.10 % |
| EBIT Margin | 3.52 % | -7.54 % | 15.41 % |
| EBITDA Margin | 5.85 % | -1.78 % | 20.68 % |
| Gross Margin | 33.53 % | 38.79 % | 38.09 % |
| Research & Development to Revenue | 0 % | 0 % |
Profitability metrics demonstrate volatility, suggesting the need for cautious yet aggressive strategies to stabilize earnings.
Price Development 📈
Dividend Scoring System ✅
| Criteria | Score | Evaluation |
|---|---|---|
| Dividend Yield | 4 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout Ratio | 2 | |
| Financial Stability | 2 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 2 |
Overall Score: 26/40
Rating 🏆
Given its strong historical dividend continuity and decent yield, The J. M. Smucker Company remains a viable option for income investors. However, potential financial instability and leverage issues could present risks. It is recommended for those with moderate risk tolerance.
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