"West Pharmaceutical has increased its dividend for 10+ consecutive years, with the annual payout growing from $0.49 in 2016 to $0.85 in 2025. That's a 73% increase over nine years, translating to a compound annual growth rate near 9.5%. The most recent bump-from $0.21 to $0.22 per quarter-represents a 4.8% increase and signals management's confidence in sustainable cash generation. For context, the company paid out $59.1 million in dividends during 2024, a modest sum compared to its $653.4 million in operating cash flow."
"Here's where the story gets more complex. West Pharmaceutical's free cash flow coverage dropped to 4.68x in 2024, down from 7.27x in 2023. That's still comfortably above the 2x safety threshold, but the trajectory deserves attention. The culprit? Capital expenditures surged to $377 million in 2024, up from $362 million the prior year and representing 57.7% of operating cash flow. Meanwhile, operating cash flow itself declined 15.8% year-over-year to $653.4 million, breaking a multi-year growth streak."
West Pharmaceutical paid $0.22 per share on February 4, 2026, yielding 0.34%. The company has raised its dividend for more than ten consecutive years, with annual payouts rising from $0.49 in 2016 to $0.85 in 2025, a 73% increase and roughly 9.5% CAGR. The latest quarterly increase to $0.22 represents a 4.8% bump. Dividend payments totaled $59.1 million in 2024 versus $653.4 million in operating cash flow, a roughly 9% payout ratio. Free cash flow coverage fell to 4.68x in 2024 from 7.27x in 2023 as capex rose to $377 million and operating cash flow declined 15.8%.
Read at 24/7 Wall St.
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