Insight into IDEX Corp's Upcoming Dividend and Historical Performance
IDEX Corp (IEX, Financial) recently announced a dividend of $0.64 per share, payable on 2024-01-26, with the ex-dividend date set for 2024-01-11. 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 Corp's dividend performance and assess its sustainability.
What Does IDEX Corp Do?
IDEX Corp 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, distributing dividends on a quarterly basis. As a testament to its commitment to shareholder returns, IDEX Corp has increased its dividend each year since 1995, earning it the prestigious title of a dividend aristocrat. Below is a chart showing the company's annual Dividends Per Share for tracking historical trends.
Breaking Down IDEX Corp's Dividend Yield and Growth
IDEX Corp currently has a 12-month trailing dividend yield of 1.22% and a forward dividend yield of 1.23%. This indicates 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%, which increased to 9.50% over a five-year period, and an impressive 11.50% over the past decade. The 5-year yield on cost for IDEX Corp stock is approximately 1.92% as of today.
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. IDEX Corp's dividend payout ratio as of 2023-09-30 is 0.31, which is considered healthy and sustainable. Additionally, IDEX Corp's profitability rank is 9 out of 10, indicating good profitability prospects and a consistent record of positive net income over the past decade.
Growth Metrics: The Future Outlook
A company's growth metrics are essential for the sustainability of dividends. IDEX Corp's growth rank of 9 out of 10 suggests strong growth relative to competitors. The company's revenue per share and 3-year revenue growth rate of 8.70% per year outperforms approximately 56.05% of global competitors. Moreover, IDEX Corp's 3-year EPS growth rate of 11.90% per year and 5-year EBITDA growth rate of 11.40% outperform the majority of global competitors, indicating a robust ability to sustain and grow dividends.
Next Steps
Considering IDEX Corp's consistent dividend payments, growth in dividend rates, sustainable payout ratio, strong profitability, and solid growth metrics, the company presents as a compelling option for value investors focused on dividend income. The upcoming dividend payment further cements its reputation as a reliable dividend payer. Investors seeking to expand their portfolio with high-dividend yield stocks can explore options using the High Dividend Yield Screener available to GuruFocus Premium users. Will IDEX Corp continue its streak as a dividend aristocrat and deliver value to its shareholders? The indicators certainly suggest so.
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.
