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NXP Semiconductors NV's Dividend Analysis

An In-depth Look at the Upcoming Dividend, Historical Payments, and Financial Health

NXP Semiconductors NV (NASDAQ:NXPI) recently announced a dividend of $1.01 per share, payable on 2024-07-10, with the ex-dividend date set for 2024-06-13. 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 NXP Semiconductors NV's dividend performance and assess its sustainability.

What Does NXP Semiconductors NV Do?

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NXP Semiconductors is a leading supplier of high-performance mixed-signal products. The firm acquired Freescale Semiconductor in 2015 and now has significant market share in the automotive market, where it supplies microcontrollers and analog chips into automotive clusters, powertrains, infotainment systems, and radars. NXP Semiconductors also serves industrial and Internet of Things, mobile, and communications infrastructure.

NXP Semiconductors NV's Dividend Analysis
NXP Semiconductors NV's Dividend Analysis

A Glimpse at NXP Semiconductors NV's Dividend History

NXP Semiconductors NV has maintained a consistent dividend payment record since 2018. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.

NXP Semiconductors NV's Dividend Analysis
NXP Semiconductors NV's Dividend Analysis

Breaking Down NXP Semiconductors NV's Dividend Yield and Growth

As of today, NXP Semiconductors NV currently has a 12-month trailing dividend yield of 1.39% and a 12-month forward dividend yield of 1.39%. This suggests an expectation of the same dividend payments over the next 12 months.

Over the past three years, NXP Semiconductors NV's annual dividend growth rate was 39.30%. Extended to a five-year horizon, this rate increased to 48.60% per year. Based on NXP Semiconductors NV's dividend yield and five-year growth rate, the 5-year yield on cost of NXP Semiconductors NV stock as of today is approximately 10.07%.

NXP Semiconductors NV's Dividend Analysis
NXP Semiconductors NV's Dividend Analysis

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 2024-03-31, NXP Semiconductors NV's dividend payout ratio is 0.32.

NXP Semiconductors NV's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks NXP Semiconductors NV's profitability 9 out of 10 as of 2024-03-31, suggesting good profitability prospects. The company has reported positive net income for each 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. NXP Semiconductors NV'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 NXP Semiconductors NV's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. NXP Semiconductors NV's revenue has increased by approximately 18.70% per year on average, a rate that outperforms approximately 74.97% 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, NXP Semiconductors NV's earnings increased by approximately 232.50% per year on average, a rate that outperforms approximately 98.6% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 48.20%, which outperforms approximately 89.72% of global competitors.

Conclusion

Considering NXP Semiconductors NV's consistent dividend payouts, robust growth metrics, and strong profitability, the company's dividend payments appear sustainable. Investors looking for a reliable dividend-paying stock in the tech sector might find NXP Semiconductors NV an attractive option. For further exploration of high-dividend yield opportunities, GuruFocus Premium users can use 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.