Founded in 1930 and transformed over the decades through the acquisition of dozens of esteemed brands, Ametek owns more than 40 autonomous industrial businesses operating across research, aerospace, energy, medical, and manufacturing... Show more
AMETEK, Inc. (AME), a leader in specialty industrial machinery, maintains a modest dividend profile suited to growth-oriented investors. The company pays dividends quarterly, with the most recent ex-dividend date on March 16, 2026, and payment on March 31, 2026, at $0.34 per share. This brings the forward annual dividend to $1.36, yielding 0.58% at a recent stock price of approximately $233. The trailing annual yield is slightly lower at 0.53% based on $1.24 paid in 2025. While not a high-yield stock, AMETEK is considered a dividend growth contender, with consistent increases reflecting strong operational performance in its electronic instruments and electromechanical segments.
AMETEK has demonstrated reliable dividend growth over the past decade. Quarterly payouts have risen from $0.06 in 2013 to $0.31 in 2025, with a jump to $0.34 announced in February 2026—a 10% increase. Annual totals advanced from $0.24 in 2013 to $1.24 in 2025, showcasing annual hikes in most years. The company has increased dividends for 6 to 7 consecutive years, though it does not qualify as a Dividend Aristocrat (25+ years of raises). This strategy supports reinvestment in acquisitions and R&D (research and development), aligning with its long-term growth focus amid consistent payments through economic cycles.
AMETEK's dividend is highly sustainable, with a payout ratio of 19.38%—well below the 50-60% threshold for caution. This leaves ample room for growth, covered over 5 times by TTM EPS of $6.41. Free cash flow coverage is robust at $1.35 billion TTM, exceeding annual dividends by a wide margin, even after recent record quarterly FCF of $527 million. Moderate debt levels and strong margins (net profit ~20%) further bolster stability, positioning the payout for continued increases without strain.
In the Specialty Industrial Machinery industry, AMETEK's 0.58% yield trails peers like ROK (1.32%), EMR (2.04% 5-year avg.), ETN (1.59% 5-year avg.), DOV (0.92%), and NDSN (1.07%). While lower, AMETEK's superior growth rate and lower payout ratio differentiate it as a reinvestment-focused play versus higher-yielding but slower-growing competitors.
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AMETEK appeals to dividend growth investors seeking compounding returns over immediate income, given its low 0.58% yield but consistent raises and 12% 5-year growth rate. Conservative long-term holders may value the ultra-low payout ratio and ample free cash flow coverage, which provide a safety buffer amid industrial cycles. However, high-yield seekers might look elsewhere, as peers offer 1-2% yields. The stock suits portfolios emphasizing capital appreciation alongside modest dividends, particularly for those bullish on AMETEK's acquisition-driven expansion in aerospace, medical, and industrial markets. Balanced investors should weigh its growth potential against sector volatility, without assuming future performance mirrors the past.
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a manufacturer of electronic instruments and electromechanical devices
Industry IndustrialMachinery