In This Article:
Understanding Stryker Corp's Dividend Sustainability and Growth
Stryker Corp (NYSE:SYK) recently announced a dividend of $0.8 per share, payable on 2024-01-31, with the ex-dividend date set for 2023-12-28. 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 Stryker Corp's dividend performance and assess its sustainability.
What Does Stryker Corp Do?
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Stryker designs, manufactures, and markets an array of medical equipment, instruments, consumable supplies, and implantable devices. The product portfolio includes hip and knee replacements, endoscopy systems, operating room equipment, embolic coils, hospital beds and gurneys, and spinal devices. Stryker remains one of the three largest competitors in reconstructive orthopedic implants and holds the leadership position in operating room equipment. Just over one fourth of Stryker's total revenue currently comes from outside the United States.
A Glimpse at Stryker Corp's Dividend History
Stryker Corp has maintained a consistent dividend payment record since 1991. Dividends are currently distributed on a quarterly basis.
Stryker Corp has increased its dividend each year since 1994. 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 29 years. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Stryker Corp's Dividend Yield and Growth
As of today, Stryker Corp currently has a 12-month trailing dividend yield of 1.01% and a 12-month forward dividend yield of 1.08%. This suggests an expectation of increased dividend payments over the next 12 months.
Over the past three years, Stryker Corp's annual dividend growth rate was 9.90%. Extended to a five-year horizon, this rate increased to 10.20% per year. And over the past decade, Stryker Corp's annual dividends per share growth rate stands at an impressive 11.60%.
Based on Stryker Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Stryker Corp stock as of today is approximately 1.64%.
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 2023-09-30, Stryker Corp's dividend payout ratio is 0.45.