International Flavors & Fragrances' (NYSE:IFF) Dividend Will Be $0.40

Yahoo

09-05-2025

The board of International Flavors & Fragrances Inc. (NYSE:IFF) has announced that it will pay a dividend on the 11th of July, with investors receiving $0.40 per share. Based on this payment, the dividend yield will be 2.2%, which is fairly typical for the industry.
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While it is always good to see a solid dividend yield, we should also consider whether the payment is feasible. While International Flavors & Fragrances is not profitable, it is paying out less than 75% of its free cash flow, which means that there is plenty left over for reinvestment into the business. This gives us some comfort about the level of the dividend payments.
Looking forward, earnings per share is forecast to rise exponentially over the next year. Assuming the dividend continues along recent trends, we think the payout ratio will be 26%, which makes us pretty comfortable with the sustainability of the dividend.
See our latest analysis for International Flavors & Fragrances
The company has a long dividend track record, but it doesn't look great with cuts in the past. The annual payment during the last 10 years was $1.56 in 2015, and the most recent fiscal year payment was $1.60. Dividend payments have grown at less than 1% a year over this period. Modest growth in the dividend is good to see, but we think this is offset by historical cuts to the payments. It is hard to live on a dividend income if the company's earnings are not consistent.
Given that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. Over the past five years, it looks as though International Flavors & Fragrances' EPS has declined at around 53% a year. Dividend payments are likely to come under some pressure unless EPS can pull out of the nosedive it is in. It's not all bad news though, as the earnings are predicted to rise over the next 12 months - we would just be a bit cautious until this becomes a long term trend.
In summary, while it's good to see that the dividend hasn't been cut, we are a bit cautious about International Flavors & Fragrances' payments, as there could be some issues with sustaining them into the future. The company is generating plenty of cash, which could maintain the dividend for a while, but the track record hasn't been great. Overall, we don't think this company has the makings of a good income stock.
Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. At the same time, there are other factors our readers should be conscious of before pouring capital into a stock. For instance, we've picked out 1 warning sign for International Flavors & Fragrances that investors should take into consideration. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks.
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