November 18, 2025 a 07:31 am
ZBH: Dividend Analysis - Zimmer Biomet Holdings, Inc.
Zimmer Biomet Holdings, Inc. has a dividend strategy that combines consistency with measured growth, essential for investors seeking steady income. With a history spanning over 14 years without suspensions, its financial strategies show resilience. As of now, it offers a moderate dividend yield, supported by strong payout ratios.
Overview 📊
Zimmer Biomet Holdings, Inc. operates within the healthcare sector, maintaining a steady dividend record. The firm offers an attractive dividend yield of 0.97%, with a current dividend per share of $0.97 USD and a 14-year history of payments without any cuts or suspensions.
| Category | Details |
|---|---|
| Sector | Healthcare |
| Dividend Yield | 0.97% |
| Current Dividend Per Share | 0.97 USD |
| Dividend History | 14 years |
| Last Cut or Suspension | None |
Dividend History 🗣️
The dividend history highlights the company's commitment to shareholder returns. The absence of any suspension ensures investors of its reliability, particularly critical in volatile markets.
| Year | Dividend Per Share (USD) |
|---|---|
| 2025 | 0.72 |
| 2024 | 0.96 |
| 2023 | 0.48 |
| 2022 | 0.96 |
| 2021 | 0.93 |
Dividend Growth 📈
The analysis of dividend growth reveals that Zimmer Biomet Holdings, Inc. provides moderate growth over recent years. Although the percentage increases are not excessive, they reflect a stable upward trend, offering potential for long-term income growth.
| Time | Growth |
|---|---|
| 3 years | 0.99% |
| 5 years | 0.59% |
The average dividend growth is 0.59% over 5 years. This shows moderate but steady dividend growth.
Payout Ratio ⚠️
Most investors gauge the safety and sustainability of a dividend by examining the payout ratios. The EPS-based payout ratio stands at 23.74%, implying the firm retains enough earnings for reinvestment. Likewise, with FCF-based payout at 13.43%, it shows that the dividend is well-covered by free cash flow.
| Key Figure | Ratio |
|---|---|
| EPS-based | 23.74% |
| Free cash flow-based | 13.43% |
These figures indicate a conservative payout approach, ensuring dividends are sustainable and unlikely to be cut in response to short-term earnings fluctuations.
Cashflow & Capital Efficiency 💵
Effective cash flow management is crucial for dividend maintenance. Zimmer Biomet's financials suggest efficient capital usage and strong operations support a stable cash flow. The metrics below offer insight into the company's cash management and capital efficiency.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 5.33% | 4.67% | 3.99% |
| Earnings Yield | 4.21% | 4.03% | 0.87% |
| CAPEX to Operating Cash Flow | 23.80% | 24.94% | 16.94% |
| Stock-based Compensation to Revenue | 1.32% | 1.35% | 1.51% |
| Free Cash Flow / Operating Cash Flow Ratio | 76.20% | 75.06% | 83.06% |
Zimmer Biomet demonstrates solid cash flow stability and efficient capital use, crucial for sustaining future dividend payments.
Balance Sheet & Leverage Analysis 📉
Analyzing leverage ratios is vital to understanding financial risk. Zimmer Biomet maintains controlled debt levels, enhancing its ability to manage obligations while continuing investment and growth initiatives.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity | 0.50 | 0.46 | 0.47 |
| Debt-to-Assets | 0.29 | 0.27 | 0.27 |
| Debt-to-Capital | 0.33 | 0.32 | 0.32 |
| Net Debt to EBITDA | 2.52 | 2.41 | 3.56 |
| Current Ratio | 1.91 | 1.61 | 1.88 |
| Quick Ratio | 0.99 | 0.78 | 0.97 |
| Financial Leverage | 1.71 | 1.72 | 1.75 |
The company shows balanced financials with leverage well within industry standards, indicating financial prudence.
Fundamental Strength & Profitability ✅
Fundamental ratios provide insight into profitability and operational efficiency. Zimmer Biomet's returns on equity and assets, combined with robust margins, underscore its competitive position.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 7.25% | 8.20% | 1.93% |
| Return on Assets | 4.23% | 4.76% | 1.10% |
| Net Margin | 11.77% | 13.85% | 3.33% |
| EBIT Margin | 16.34% | 17.16% | 8.19% |
| EBITDA Margin | 29.31% | 30.03% | 21.54% |
| Gross Margin | 71.46% | 71.82% | 70.90% |
| Research & Development to Revenue | 5.70% | 6.20% | 5.85% |
These measures highlight a strong foundation in profitability with room for growth as operations continue to optimize and expand.
Price Development 📈
Dividend Scoring System 🎯
| Category | Score | Scoring |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout Ratio | 4 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 32 out of 40
Rating 🏆
Zimmer Biomet Holdings, Inc. shows a comprehensive and sustainable approach to dividends. Balancing steady yields with firm financial fundamentals, it attracts both income and growth-oriented investors. Consider adding to your portfolio for a mix of stable income and potential capital appreciation.