March 09, 2026 a 11:31 am

TSN: Dividend Analysis - Tyson Foods, Inc.

Tyson Foods, Inc. Analysis Image

Tyson Foods, Inc. presents a compelling dividend opportunity with a yield of 3.30%, supported by a consistent history of payments over 39 years. The company's recent challenges with profitability, as reflected in its high EPS payout ratio, warrant caution. Nevertheless, steady dividend growth of 3.35% over the past five years indicates stable financial planning.

๐Ÿ“Š Overview

An in-depth analysis of Tyson Foods, Inc.'s dividend metrics reveals a robust historical commitment to shareholder returns.

Parameter Value
Sector Consumer Goods
Dividend Yield 3.30%
Current Dividend Per Share 2.00 USD
Dividend History 39 years
Last Cut or Suspension None

๐Ÿ—ฃ๏ธ Dividend History

The dividend history of Tyson Foods, Inc. highlights a remarkable resilience in maintaining payouts, confirming investor confidence.

Dividend History Chart
Year Dividend Per Share (USD)
2026 1.02
2025 2.01
2024 1.97
2023 1.93
2022 1.86

๐Ÿ“ˆ Dividend Growth

Analyzing the dividend growth is crucial as it reflects the company's profitability and strategic financial management.

Time Growth
3 years 2.62%
5 years 3.35%

The average dividend growth is 3.35% over 5 years. This shows moderate but steady dividend growth.

Dividend Growth Chart

๐Ÿ“‰ Payout Ratio

Payout ratios are critical indicators of financial health; a balance is essential to ensure sustainable dividend policies.

Key Figure Ratio
EPS-based 345.50%
Free Cash Flow-based 64.46%

The remarkably high EPS payout ratio of 345.50% could signal potential unsustainable practices if sustained, while the FCF payout demonstrates moderate coverage.

โœ… Cashflow & Capital Efficiency

Reviewing cash flows and capital efficiency provides insights into operational prudence and future growth potential.

The data suggests fluctuating cash flow stability, which might impact future capital investments and return on capital metrics.

Metric 2025 2024 2023
Free Cash Flow Yield 6.24% 6.90% -1.05%
Earnings Yield 2.51% 3.79% -3.63%
CAPEX to Operating Cash Flow 45.38% 43.71% 110.67%
Stock-based Compensation to Revenue 0.18% 0.19% 0.12%
Free Cash Flow / Operating Cash Flow Ratio 54.62% 56.29% -10.67%

โš ๏ธ Balance Sheet & Leverage Analysis

Understanding the balance sheet and leverage provides a snapshot of financial health and risk assessment.

The metrics illustrate a steady balance sheet with manageable leverage, though the spike in net debt to EBITDA in 2023 needs addressing.

Metric 2025 2024 2023
Debt-to-Equity 0.49 0.53 0.52
Debt-to-Assets 0.24 0.26 0.26
Debt-to-Capital 0.33 0.35 0.34
Net Debt to EBITDA 2.95 2.71 8.79
Current Ratio 1.55 2.04 1.34
Quick Ratio 0.66 0.95 0.52
Financial Leverage 2.03 2.02 1.99

๐Ÿ—ฃ๏ธ Fundamental Strength & Profitability

Evaluating fundamental strengths and profitability aids in understanding the company's capacity for growth and sustainability.

The data indicates a strong fundamental framework with significant margin expansion opportunities, although the negative net margin in 2023 requires strategic realignment.

Metric 2025 2024 2023
Return on Equity 2.62% 4.35% -3.57%
Return on Assets 1.29% 2.16% -1.79%
Margins: Net 0.87% 1.50% -1.23%
Margins: EBIT 2.24% 2.95% -0.61%
Margins: EBITDA 4.74% 5.58% 1.92%
Margins: Gross 6.54% 6.80% 4.98%
Research & Development to Revenue 0.23% 0.20% 0.22%

๐Ÿ“ˆ Price Development

Price Development Chart

โœ… Dividend Scoring System

Criteria Score Score Bar
Dividend Yield 4
Dividend Stability 5
Dividend Growth 3
Payout Ratio 2
Financial Stability 3
Dividend Continuity 5
Cashflow Coverage 3
Balance Sheet Quality 3
Total Score: 28/40

โœ… Rating

Tyson Foods, Inc. maintains a steady dividend track record with moderate growth potential. Despite recent profitability concerns, the firm has demonstrated resilience and a commitment to sustaining its dividend policy. Investors should consider the firm's ability to tackle its high payout ratio and leverage in assessing long-term opportunities. Overall, Tyson Foods offers a balanced dividend play in its sector, with a total score indicating a moderately attractive investment proposition.