June 05, 2026 a 07:46 am
ZTS: Dividend Analysis - Zoetis Inc.
The purpose of this comprehensive analysis is to provide a detailed evaluation of Zoetis Inc.'s dividend profile. We will investigate key metrics including dividend yield, growth, and payout ratios to determine the viability of ZTS as a dividend investment. With a stable dividend history and moderate growth, it promises to be a viable option for income-focused investors. Let's delve into the details to assess its attractiveness comprehensively.
📊 Overview
| Detail | Metric |
|---|---|
| Sector | Health Care |
| Dividend yield | 2.63 % |
| Current dividend per share | 2.00 USD |
| Dividend history | 14 years |
| Last cut or suspension | None |
🗣️ Dividend History
The historical perspective on dividends provides a lens through which the consistency and reliability of a company's dividend policy can be measured. Zoetis Inc. has demonstrated sustained dividend growth over 14 years, establishing confidence in its dividend payment strategy.
| Year | Dividend per Share (USD) |
|---|---|
| 2026 | 1.59 |
| 2025 | 2.00 |
| 2024 | 1.728 |
| 2023 | 1.500 |
| 2022 | 1.300 |
📈 Dividend Growth
Dividend growth analysis is pivotal for assessing future payout potential. The company's recent average annual dividend growth rates suggest moderate expansion capabilities.
| Time | Growth |
|---|---|
| 3 years | 15.44 % |
| 5 years | 20.11 % |
The average dividend growth is 20.11% over 5 years. This shows moderate but steady dividend growth.
📉 Payout Ratio
Payout ratios reflect the proportion of earnings and cash flow returned to shareholders, thereby offering insights into the company's financial sustainability and operational resilience.
| Key figure | Ratio |
|---|---|
| EPS-based | 32.02 % |
| Free cash flow-based | 39.35 % |
With a payout ratio of 32.02% based on EPS and 39.35% based on FCF, Zoetis Inc. maintains a balanced approach in reward and retain earnings for growth.
✅ Cashflow & Capital Efficiency
Analyzing cash flows reveals the firm's ability to fund dividend payments primarily through cash from operations, avoiding reliance on external financing.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Free Cash Flow Yield | 4.09 % | 3.11 % | 1.78 % |
| Earnings Yield | 4.79 % | 3.36 % | 2.58 % |
| CAPEX to Operating Cash Flow | 21.41 % | 22.18 % | 31.11 % |
| Stock-based Compensation to Revenue | 0.88 % | 0.80 % | 0.70 % |
| Free Cash Flow / Operating Cash Flow Ratio | 78.62 % | 77.82 % | 68.89 % |
Zoetis Inc. shows consistent cash flow ratios, indicating stability in its financial reserves, capable of supporting sustainable dividend payments.
⚠️ Balance Sheet & Leverage Analysis
Balance sheet strength and leverage metrics assess a firm’s capacity to meet financial obligations and handle credit cycles.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Debt-to-Equity | 2.85 | 1.41 | 1.35 |
| Debt-to-Assets | 61.38 % | 47.37 % | 47.28 % |
| Debt-to-Capital | 74.03 % | 58.57 % | 57.48 % |
| Net Debt to EBITDA | 1.81 | 1.23 | 1.28 |
| Current Ratio | 3.15 | NA | NA |
| Quick Ratio | 1.94 | 1.08 | 2.00 |
| Financial Leverage | 4.64 | 2.98 | 2.86 |
The current leverage and liquidity ratios suggest Zoetis Inc. is maintaining adequate financial leverage while ensuring strong liquidity, indicating cautious fiscal management.
💪 Fundamental Strength & Profitability
Assessing fundamental strengths provides insights into operational efficiency and profitability, showcasing how effectively a company converts revenue into profits.
| Year | 2025 | 2024 | 2023 |
|---|---|---|---|
| Return on Equity | 80.25 % | 52.12 % | 46.91 % |
| Return on Assets | 17.28 % | 17.46 % | 16.41 % |
| Margins: Net | 28.23 % | 26.86 % | 27.43 % |
| EBIT | 37.84 % | 36.46 % | 37.38 % |
| EBITDA | 42.98 % | 41.83 % | 43.13 % |
| Gross | 70.49 % | 69.10 % | 68.28 % |
| Research & Development to Revenue | 7.58 % | 7.41 % | 7.18 % |
Zoetis Inc. has strong profitability metrics with consistently high returns on equity and robust margins, signifying solid managerial performance and operational efficiency.
🌟 Price Development
🏆 Dividend Scoring System
| Criteria | Score | Score Bar |
|---|---|---|
| Dividend yield | 3 | |
| Dividend Stability | 5 | |
| Dividend growth | 4 | |
| Payout ratio | 4 | |
| Financial stability | 4 | |
| Dividend continuity | 5 | |
| Cashflow Coverage | 5 | |
| Balance Sheet Quality | 4 |
Total Score: 34/40
✅ Rating
Zoetis Inc. presents a robust dividend profile characterized by excellent stability, strong growth potential, and secure payout ratios. With a high total score of 34 out of 40, Zoetis is a commendable choice for dividend-seeking investors looking for dependable returns and potential capital appreciation.
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