Advanced Energy Industries (AEIS) DIvidends Date & History

Key Takeaways

• Advanced Energy Industries (AEIS) pays a quarterly dividend of $0.10 per share, delivering a trailing annual yield of 0.11%.
• The payout ratio stands at a low 10.34%, signaling strong dividend sustainability backed by ample earnings coverage.
• Free cash flow of $119.96 million (TTM) comfortably covers the modest annual dividend payout.
• No long-term dividend growth streak; payments have remained stable at $0.10 quarterly in recent years.
• Yield trails peers like Applied Materials (AMAT) at 0.51% and Lam Research (LRCX) at 0.42%.
• Upcoming ex-dividend date is February 23, 2026, with payment on March 6, 2026.

Dividend Overview

Advanced Energy Industries (AEIS), a provider of precision power conversion and control solutions in the electrical equipment industry, maintains a modest quarterly dividend policy. The company currently distributes $0.10 per share every three months, equating to an annual dividend of $0.40. This results in a trailing yield of 0.11% and a forward yield of 0.10%, based on recent share prices around $384. Over the past five years, the average dividend yield has been 0.36%, reflecting a conservative approach rather than aggressive income generation. AEIS does not qualify as a high-yield or dividend growth stock but appeals to those prioritizing capital preservation in the industrials sector.

Dividend History and Growth

Advanced Energy Industries has demonstrated consistency in its dividend payments, maintaining a quarterly cash dividend of $0.10 per share in recent years, with the most recent declaration for the period ending March 6, 2026. Historical records indicate at least 21 dividend payments, primarily quarterly at the current level, without notable increases or cuts in the immediate past. The company lacks a formal dividend growth streak, such as Dividend Aristocrat status, and its strategy emphasizes stability over expansion. The five-year average yield of 0.36% underscores a steady but unremarkable profile, aligning with reinvestment priorities in semiconductor and power electronics markets.

Dividend Sustainability and Payout Ratio

The dividend appears highly sustainable, supported by a trailing payout ratio of just 10.34%—well below typical thresholds of 60-75% for safety. Earnings per share comfortably cover the $0.40 annual dividend, with projections suggesting the ratio could dip further to around 5.7% in coming years. Trailing twelve-month operating cash flow of $233.3 million and levered free cash flow of $119.96 million provide robust coverage, far exceeding annual dividend obligations. Balance sheet metrics reinforce this: a current ratio (mrq) of 1.59 indicates solid liquidity, while total debt-to-equity at 49.82% remains manageable for the sector. Overall financial stability positions the payout as low-risk amid cyclical industry demands.

Dividend Compared to Industry Peers

In the electrical equipment and semiconductor support space, AEIS's 0.11% yield lags behind key peers. Applied Materials (AMAT) offers 0.51%, while Lam Research (LRCX) yields 0.42% and KLA (KLAC) around 0.35%. MKS Instruments (MKSI) also maintains a low but comparable profile. AEIS's conservative payout prioritizes growth potential over income, underperforming the sector average where yields typically range higher for established players, though all remain modest relative to broader industrials.

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Is This Stock Attractive for Dividend Investors?

For dividend investors, Advanced Energy Industries (AEIS) suits conservative profiles seeking stability over high income or rapid growth. Its ultra-low payout ratio and strong cash flow coverage make it resilient in volatile semiconductor cycles, appealing to those prioritizing capital preservation and potential future payout expansions. Income-focused investors may find the 0.11% yield insufficient compared to higher-yielding industrials, while dividend growth enthusiasts could note the absence of increases. Long-term holders in tech-heavy portfolios might value the balance sheet strength (current ratio 1.59, moderate debt-to-equity) amid industry tailwinds like AI and renewables. Overall, it fits patient, risk-averse strategies rather than yield-chasing ones, with room for payout growth if earnings accelerate.

Disclaimer

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