June 28, 2025 a 07:31 am
SPGI: Dividend Analysis - S&P Global Inc.
S&P Global Inc. has a robust dividend profile supported by a consistent history of dividend payments and growth over 41 years. With a dividend yield of 0.73%, the company provides moderate but steady returns to its shareholders, reflecting its strong commitment to rewarding investors. The low payout ratios indicate financial prudence, allowing room for growth and innovation.
📊 Overview
The company is a leader in the Financial Analytics sector, providing essential intelligence to investors through its promulgated analytics services. Below is a snapshot of the current dividend metrics:
| Metric | Value |
|---|---|
| Sector | Financial Analytics |
| Dividend Yield | 0.73% |
| Current Dividend Per Share | 3.64 USD |
| Dividend History | 41 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
The dividend history underscores the company's commitment to returning capital to shareholders. The history of 41 consecutive years of dividend payments is a testament to the sustainable growth and stability of S&P Global Inc.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 1.92 |
| 2024 | 3.64 |
| 2023 | 3.60 |
| 2022 | 3.32 |
| 2021 | 3.08 |
📈 Dividend Growth
Dividend growth is a crucial indicator of the potential future income from an investment. Consistent dividend growth suggests a company is doing well financially and has a management team committed to rewarding shareholders.
| Time | Growth |
|---|---|
| 3 years | 5.73% |
| 5 years | 9.81% |
The average dividend growth is 9.81% over 5 years. This shows moderate but steady dividend growth.
⚖️ Payout Ratio
The payout ratio is a key measure of sustainability for dividend payouts. It indicates the portion of earnings distributed as dividends.
| Key Figure | Ratio |
|---|---|
| EPS-based | 28.30% |
| Free Cash Flow-based | 20.11% |
With the EPS-based payout ratio at 28.30% and FCF-based at 20.11%, S&P Global Inc. demonstrates strong capacity to maintain its dividend payments, with ample room for future increases as needed.
💰 Cashflow & Capital Efficiency
Understanding cash flow and capital efficiency is vital, as it reflects the company's ability to generate free cash flow and efficiently allocate capital toward growth and shareholder returns.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 3.59% | 2.54% | 2.37% |
| Earnings Yield | 2.48% | 1.87% | 3.06% |
| CAPEX to Operating Cash Flow | 2.18% | 3.85% | 3.42% |
| Stock-based Compensation to Revenue | 1.74% | 1.37% | 1.91% |
| Free Cash Flow / Operating Cash Flow Ratio | 97.82% | 96.15% | 96.58% |
The consistent Free Cash Flow to Operating Cash Flow ratio near 97% over the last years indicates reliable cash flow stability and a prudent capital efficiency.
🏦 Balance Sheet & Leverage Analysis
Analyzing the balance sheet and leverage gives insights into the company's long-term viability and financial risks.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 36% | 35% | 32% |
| Debt-to-Assets | 19.82% | 19.81% | 18.67% |
| Debt-to-Capital | 26% | 26% | 24% |
| Net Debt to EBITDA | 1.52 | 2.08 | 2.07 |
| Current Ratio | 0.90 | 0.84 | 0.94 |
| Quick Ratio | 0.85 | 0.84 | 1.14 |
| Financial Leverage | 1.82 | 1.77 | 1.69 |
The increase in Net Debt to EBITDA ratio suggests caution with leverage but remains acceptable within industry standards, complemented by a strong interest coverage ability.
📈 Fundamental Strength & Profitability
Evaluating fundamental strength reveals a company's efficiency in using its capital and labor to generate profits.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 11.62% | 7.68% | 8.90% |
| Return on Assets | 6.40% | 4.33% | 5.26% |
| Net Profit Margin | 27.11% | 21.01% | 29.05% |
| EBIT Margin | 39.45% | 32.05% | 44.77% |
| EBITDA Margin | 47.68% | 41.14% | 44.31% |
| Gross Margin | 69.09% | 66.86% | 66.32% |
| R&D to Revenue | 0% | 0% | 0% |
Strong profitability metrics such as high ROE and sustainable margins highlight effective management and robust operations.
📉 Price Development
✅ Dividend Scoring System
| Category | Score | Score Bar |
|---|---|---|
| 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: 33/40
📉 Rating
With a strong dividend history, prudent payout ratios, and consistent financial performance, S&P Global Inc. is well-positioned as a reliable but moderate income investment. I recommend a cautious buy, acknowledging the higher valuation metrics against industry benchmarks while appreciating the company's overall strength and stability in the financial market.