June 10, 2025 a 02:46 am
SYK: Dividend Analysis - Stryker Corporation
Stryker Corporation offers a solid track record in dividend payments with 35 consecutive years of history. While the current dividend yield is modest at 0.87%, the company has demonstrated a reliable growth trajectory which may appeal to investors seeking stability in the medical technology sector. Additionally, its payout ratios indicate a sustainable dividend policy supported by strong fundamentals.
📊 Overview
Analyzing the dividend fundamentals of Stryker Corporation provides insights into its sector performance and consistent dividend policy.
| Metric | Value |
|---|---|
| Sector | Medical Devices |
| Dividend yield | 0.87% |
| Current dividend per share | $3.20 USD |
| Dividend history | 35 years |
| Last cut or suspension | None |
📈 Dividend History
Stryker's dividend history showcases the company's commitment to returning value to shareholders, marking 35 consecutive years of dividend payments. This historical perspective is critical for evaluating the company's reliability in shareholder value distribution.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 1.68 |
| 2024 | 3.24 |
| 2023 | 3.05 |
| 2022 | 2.835 |
| 2021 | 2.585 |
📊 Dividend Growth
The growth of Stryker's dividends illustrates the firm’s potential for income growth. The stability of dividend increases over time is a strong indicator of a company's financial health and growth capacity.
| Time | Growth |
|---|---|
| 3 years | 7.82% |
| 5 years | 8.70% |
The average dividend growth is 8.70% over 5 years. This shows moderate but steady dividend growth.
💼 Payout Ratio
Payout ratios provide insight into the portion of earnings and cash flow being distributed as dividends, revealing the sustainability of current payout policies.
| Key figure | Ratio |
|---|---|
| EPS-based | 42.72% |
| Free cash flow-based | 34.18% |
The EPS-based payout ratio of 42.72% and FCF-based payout of 34.18% indicate a conservative and sustainable dividend policy, allowing for potential reinvestment into business operations.
📈 Cashflow & Capital Efficiency
Examining cash flow and capital efficiency metrics is vital for assessing the financial resilience and capital allocation efficiency of Stryker Corporation.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 2.54% | 2.76% | 2.20% |
| Earnings Yield | 2.18% | 2.78% | 2.55% |
| CAPEX to Operating Cash Flow | 17.80% | 15.49% | 22.41% |
| Stock-based Compensation to Revenue | 1.01% | 1.00% | 0.91% |
| Free Cash Flow / Operating Cash Flow Ratio | 82.20% | 84.51% | 77.59% |
| Return on Invested Capital | 8.60% | 9.79% | 7.83% |
The consistent positive cash flow yield and efficient capital spending demonstrate Stryker's effective capital management and capability in sustaining operations and growth.
🗣️ Balance Sheet & Leverage Analysis
In-depth analysis of leverage ratios and balance sheet metrics is crucial to gauge financial stability and solvency.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 65.90% | 69.89% | 78.53% |
| Debt-to-Assets | 31.64% | 32.56% | 35.38% |
| Debt-to-Capital | 39.72% | 41.14% | 43.99% |
| Net Debt to EBITDA | 1.74 | 2.03 | 2.47 |
| Current Ratio | 1.95 | 1.58 | 1.63 |
| Quick Ratio | 1.32 | 0.97 | 1.00 |
| Financial Leverage | 2.08 | 2.15 | 2.22 |
The moderately increasing leverage ratios and solid liquidity positions suggest a well-managed debt structure that enables sustained capital accessibility while minimizing risk.
📉 Fundamental Strength & Profitability
Key profitability and efficiency metrics offer insight into Stryker's operational effectiveness and resilience.
| Year | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 14.51% | 17.02% | 14.19% |
| Return on Assets | 6.97% | 7.93% | 6.39% |
| Net Margin | 13.25% | 15.44% | 12.78% |
| EBIT Margin | 20.65% | 19.06% | 16.49% |
| EBITDA Margin | 25.30% | 24.07% | 24.59% |
| Gross Margin | 63.91% | 63.89% | 62.76% |
| Research & Development to Revenue | 6.49% | 6.77% | 7.88% |
Maintaining robust margins and efficiency metrics, despite slight fluctuations, highlights Stryker's capacity to navigate competitive markets and drive profitability.
Price Development
✅ Dividend Scoring System
| Category | Score (out of 5) | 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 out of 40
⚠️ Rating
Stryker Corporation maintains a strong position with its consistent dividend policy and growth potential, making it an attractive option for investors prioritizing stability and solid returns in the medical technology field where innovation and reliability intersect.