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Intuit Continues to Raise Its Dividend

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Dividend payment history

Intuit (INTU) has continued to pay uninterrupted dividends every quarter, making its stock attractive to investors. It continues to enhance shareholder wealth through regular dividend payments. In the last seven years, the company has raised its dividend six times.

In fiscal 2017, the company paid ~$352 million in dividends. In the last five years, the company has paid a total of $1.4 billion in dividends at an average of ~$275 million per year.

The graph above shows Intuit’s dividend payment trends in the last five years. In 1H18, the company paid ~$205 million in dividends, compared with $177 million in 1H17. In fiscal 2Q18, the company returned ~$100 million in dividends.

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Peer comparison

At present, Intuit’s dividend yield is 0.91%, whereas software peers IBM (IBM), Oracle (ORCL), and Microsoft (MSFT) have yields of 3.9%, 1.7%, and 1.9%, respectively. Intuit’s free cash flow in 1H18 was $97 million. In the last five years, the company has maintained an average free cash flow of ~$1.3 billion per year. Intuit’s robust free cash flow and lower leverage may sustain its dividend payment policy going forward.

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