IDEX Corp's Dividend Analysis
A comprehensive look at IDEX Corp's dividend performance and prospects
IDEX Corp(NYSE:IEX) recently announced a dividend of $0.64 per share, payable on 2023-10-27, with the ex-dividend date set for 2023-10-12. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into IDEX Corps dividend performance and assess its sustainability.
What Does IDEX Corp Do?
Warning! GuruFocus has detected 1 Warning Sign with IEX. Click here to check it out.
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
How to calculate the intrinsic value of a stock?
Idex manufactures pumps, flow meters, valves, and fluidic systems for customers in a variety of end markets, including industrial, fire and safety, life science, and water. The firm's business is organized into three segments: fluid and metering technologies, health and science technologies, and fire and safety and diversified products. Based in Lake Forest, Illinois, Idex has manufacturing operations in over 20 countries and has over 7,000 employees. The company generated $3.2 billion in revenue and $763 million in adjusted operating income in 2022.
A Glimpse at IDEX Corp's Dividend History
IDEX Corp has maintained a consistent dividend payment record since 1995. Dividends are currently distributed on a quarterly basis. IDEX Corp has increased its dividend each year since 1995. The stock is thus listed as a dividend aristocrat, an honor that is given to companies that have increased their dividend each year for at least the past 28 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down IDEX Corp's Dividend Yield and Growth
As of today, IDEX Corp currently has a 12-month trailing dividend yield of 1.20% and a 12-month forward dividend yield of 1.24%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, IDEX Corp's annual dividend growth rate was 6.60%. Extended to a five-year horizon, this rate increased to 9.50% per year. And over the past decade, IDEX Corp's annual dividends per share growth rate stands at an impressive 11.50%.
Based on IDEX Corp's dividend yield and five-year growth rate, the 5-year yield on cost of IDEX Corp stock as of today is approximately 1.89%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-06-30, IDEX Corp's dividend payout ratio is 0.40.
IDEX Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks IDEX Corp's profitability 9 out of 10 as of 2023-06-30, suggesting good profitability prospects. The company has reported positive net income for each of year over the past decade, further solidifying its high profitability.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. IDEX Corp's growth rank of 9 out of 10 suggests that the company's growth trajectory is good relative to its competitors.
Revenue is the lifeblood of any company, and IDEX Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. IDEX Corp's revenue has increased by approximately 8.70% per year on average, a rate that outperforms than approximately 57% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, IDEX Corp's earnings increased by approximately 11.50% per year on average, a rate that outperforms than approximately 49.58% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 9.10%, which outperforms than approximately 49.87% of global competitors.
Conclusion
In conclusion, IDEX Corp presents a compelling case for dividend investors. The company's consistent dividend payments, robust dividend growth rate, and sustainable payout ratio, combined with its strong profitability and growth metrics, make it a potential candidate for investors seeking dividend income. However, as with any investment, it's always crucial to conduct thorough research and consider the company's overall financial health, market position, and future prospects before making an investment decision.
GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
