Stryker’s Latest Dividend Announcement: Must-Knows
Quarterly cash dividend
On August 2, Stryker (SYK) announced a quarterly cash dividend of $0.425 per share. The dividend should be payable on October 31 to shareholders of record on September 29. The company has paid increasing dividends to its shareholders for the past six years. Stryker has paid a quarterly dividend of $0.425 per share through all the quarters of the current fiscal year. This dividend represents growth of around 12%, compared to the dividend of $0.38 per share paid by the company over the quarters in fiscal 2016. Stryker paid $318 million in dividends in 1H17, compared to around $284 million in dividends paid by the company in 1H16.
Investors who are interested in exposure to Stryker and its peers who pay consistent dividends to shareholders can consider investing in the Vanguard Dividend Appreciation ETF (VIG), which has ~1.5% of its holdings in Stryker.
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Dividend payout strategy
Stryker has consistently been paying dividends to its shareholders over the past 23 years. The company paid annual dividends until 2008. Beginning in November 2009, the company started paying quarterly dividends. Stryker has a history of consistently returning value to its shareholders through strategic M&As (mergers and acquisitions), disciplined dividend distribution, and share repurchases, as per the company’s capital deployment strategy depicted in the chart above. The company has increased its quarterly dividend payments in double digits YoY (year-over-year) over recent years.
As of August 31, Stryker has a dividend payout ratio of 35.5%. The company’s dividend yield stands at around 1.22. Peers Medtronic (MDT), Zimmer Biomet Holdings (ZBH), and Intuitive Surgical (ISRG) have dividend yields of 1.22, 2.07, and 2.31, respectively.
Next, we’ll take a look at the latest analyst recommendations for Stryker.