June 01, 2025 a 03:31 am
TSN: Dividend Analysis - Tyson Foods, Inc.
Tyson Foods, Inc. demonstrates a substantial dividend yield and a credible history of consistent dividend payments, reflecting stability in shareholder returns. The company’s strategic investments in its growth are evident from the regular increases in dividend payments over the years, marking a strong commitment to maximizing shareholder value. However, the payout ratios suggest a need for caution, especially considering potential volatility in earnings.
📊 Overview
Tyson Foods operates within the consumer goods sector and has maintained a robust dividend policy over the years. It's crucial for investors to consider the sustainable nature of its dividend yield when evaluating its potential as an income-generating stock.
| Metric | Value |
|---|---|
| Sector | Consumer Goods |
| Dividend Yield | 3.56 % |
| Current Dividend Per Share | 1.93 USD |
| Dividend History | 38 years |
| Last Cut or Suspension | None |
🗣️ Dividend History
Dividend history is a critical indicator of a company's commitment to returning value to shareholders. Tyson Foods shows a commendable 38-year track record of dividend payments, emphasizing a strong tradition of value delivery. This consistent history further reinforces the reliability of its dividends.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 1.50 |
| 2024 | 1.97 |
| 2023 | 1.93 |
| 2022 | 1.86 |
| 2021 | 1.78 |
📈 Dividend Growth
The growth rate in dividends reflects the company's ability to enhance shareholder returns progressively. Analyzing Tyson Food’s dividend growth illustrates its working towards enhancing yield through steady increases, reinforcing investor confidence in sustained performance.
| Time | Growth |
|---|---|
| 3 years | 3.15 % |
| 5 years | 4.98 % |
The average dividend growth is 4.98 % over 5 years. This shows moderate but steady dividend growth.
⚠️ Payout Ratio
Understanding the payout ratio provides insight into the dividend's sustainability. Higher ratios can signal potential concerns if not underpinned by stable earnings. Tyson Foods' payout ratios indicate a balanced but leveraged approach towards shareholder distributions.
| Key Figure | Ratio |
|---|---|
| EPS-based | 75.05 % |
| Free Cash Flow-based | 52.55 % |
While Tyson Foods maintains a 75.05 % EPS payout, the free cash flow payout at 52.55 % offers a more conservative view, suggesting manageable dividend levels relative to cash generation.
✅ Cashflow & Capital Efficiency
Efficient cash flow management is pivotal for upholding dividend payments and strategic reinvestment. Analysis of Tyson Foods' cash flow metrics demonstrates substantial capital efficiency, albeit with careful attention needed towards maintaining robust cash flow coverage.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 6.92 % | -1.05 % | 3.37 % |
| Earnings Yield | 3.79 % | -3.63 % | 13.64 % |
| CAPEX to Operating Cash Flow | 43.71 % | 110.67 % | 70.23 % |
| Stock-based Compensation to Revenue | 0.19 % | 0.12 % | 0.17 % |
| Free Cash Flow / Operating Cash Flow Ratio | 56.29 % | -10.67 % | 29.77 % |
Tyson Foods effectively manages cash flows, but significant variances especially in 2023 indicate volatility that requires strategic adjustments to sustain future dividend stability.
📊 Balance Sheet & Leverage Analysis
An in-depth examination of Tyson Foods' balance sheet reveals critical leverage positions crucial to understanding financial health. Stable leverage ratios align with prudent financial management, though shifts in the Net Debt to EBITDA indicate potential repayment and capitalization focus.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.53 | 0.52 | 0.42 |
| Debt-to-Assets | 0.26 | 0.26 | 0.23 |
| Net Debt to EBITDA | 2.71 | 8.79 | 1.28 |
| Current Ratio | 2.04 | 1.34 | 1.81 |
| Quick Ratio | 0.95 | 0.52 | 0.77 |
While maintaining stable debt and liquidity positions, attention to increasing leverage is vital to ensure the financial resilience amidst industry dynamics.
📉 Fundamental Strength & Profitability
Tyson Foods’ profitability metrics underpin its operational effectiveness and strategic capital utilization. Consistent returns reflect robust operational processes, though margins point towards varied market conditions influencing profitability.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 4.35 % | -3.57 % | 16.43 % |
| Return on Assets | 2.16 % | -1.79 % | 8.79 % |
| Net Profit Margin | 1.50 % | -1.22 % | 6.08 % |
| EBIT Margin | 2.95 % | -0.61 % | 8.47 % |
| Research & Development to Revenue | 0 % | 0 % | 0 % |
With strategic reinvestments, Tyson Foods can capitalize on its fundamental strengths to enhance profitability, supporting shareholder return ambitions.
📈 Price Development
Dividend Scoring System
| Criteria | Score | Bar |
|---|---|---|
| Dividend Yield | 4 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout Ratio | 3 | |
| Financial Stability | 3 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 31/40
Rating
Tyson Foods shows reliable dividend performance backed by a solid scoring system. The persistent enhancements and prudent financial maneuvers especially post-2023 suggest an optimistic recovery trajectory. The stock is positioned as an attractive dividend payer with moderate growth potential, deserving investor consideration for yield stability and consistent returns.