Teleflex to Pay $0.34 Dividend, Earnings Expected to Cover Future Distributions

Teleflex Incorporated (NYSE:TFX) will pay a dividend of $0.34 per share on September 15th. The dividend yield is 1.2%, below the industry average. Teleflex's earnings easily cover the dividend, with EPS expected to grow by 182.2% next year. The payout ratio is projected to be 11%, a sustainable level. However, the dividend has been relatively stable, with little fluctuation over the past 10 years, but EPS has declined at around 16% annually over the past five years.

Teleflex Incorporated (NYSE:TFX) has announced that it will pay a dividend of $0.34 per share on September 15th. This dividend represents a yield of 1.2%, which is below the industry average. Despite the lower yield, Teleflex's earnings are expected to cover the dividend, with earnings per share (EPS) projected to grow by 182.2% next year. The payout ratio is anticipated to be 11%, a sustainable level, indicating that the dividend is well-supported by the company's financial performance.

Teleflex has a strong track record of paying dividends, having done so for 49 consecutive years. Over the past decade, the dividend has remained relatively stable, although the growth rate has been modest. However, EPS has been declining at an annual rate of 16% over the past five years, which may put some pressure on the dividend in the future.

The company's recent earnings reports show mixed results. In the second quarter of 2025, Teleflex exceeded analysts' expectations, with an EPS of $3.73 and revenue of $780.9 million. However, in the first quarter of 2025, the company missed both EPS and revenue forecasts. Additionally, Teleflex completed the acquisition of BIOTRONIK’s Vascular Intervention business for €760 million, which has led to a slight downgrade in RBC Capital's price target for the stock.

Investors should be cautious when considering Teleflex as a dividend stock. While the current dividend is sustainable, the company's earnings growth has been inconsistent, and the dividend yield is below the industry average. However, the strong financial health and consistent dividend history may be attractive to some investors.

References:
[1] https://simplywall.st/stocks/us/healthcare/nyse-tfx/teleflex/news/teleflex-nysetfx-has-announced-a-dividend-of-034
[2] https://m.ng.investing.com/news/analyst-ratings/teleflex-stock-price-target-raised-to-135-from-130-at-rbc-capital-93CH-2037765?ampMode=1
[3] https://za.investing.com/news/company-news/teleflex-declares-quarterly-dividend-of-034-per-share-93CH-3813108