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Danaher Rewards Shareholders With 18.5% Dividend Increase

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In a shareholder-friendly move, Danaher Corporation (DHR - Free Report) has announced a hike in its dividend payout. The company increased its quarterly dividend by 18.5% to 32 cents per share (annually: $1.28). The new dividend will be paid out on April 25, 2025, to shareholders of record as of March 28, 2025.

The move underscores DHR’s sound financial health as it utilizes free cash flow to enhance its shareholders’ returns. Prior to this, Danaher had hiked its dividend by 8% to 27 cents per share in February 2024.

Strong cash flows allow Danaher to effectively deploy capital for making acquisitions, repurchasing shares and paying out dividends. The company’s adjusted free cash flow totaled $5.3 billion in 2024, reflecting an increase of 3.5% year over year. Dividend payments totaled $768 million in 2024 and $821 million in 2023.

The company also bought back 28 million of its common stock for $7 billion in 2024. We believe such disbursements highlight its operational strength and commitment to enhancing shareholders’ wealth.

DHR Zacks Rank & Stock Price Performance

DHR, with a $150.3 billion market capitalization, currently carries a Zacks Rank #4 (Sell). Despite recovery, sluggish demand across the pharma and biotech markets in China has been weighing on Danaher’s Instrument businesses under the Life Sciences segment.

The company has been witnessing a sales decline in mass spectrometry, flow cytometry & lab automation solutions and microscopy businesses due to soft demand for equipment in major end-markets. For the first quarter of 2025, Danaher anticipates core revenues from the Life Sciences segment to decline in mid-single-digits on a year-over-year basis.

DHR Stock Price Performance

Zacks Investment Research
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In the past six months, the company’s shares have lost 23.1% compared with the medical services industry’s 14.3% decline.

The Zacks Consensus Estimate for its 2025 earnings is pegged at $7.63 per share, down 7.3% from the 30-day-ago figure.

Other Stocks to Consider

Some better-ranked stocks from the same space are discussed below.

Premier, Inc. (PINC - Free Report) presently sports a Zacks Rank #1 (Strong Buy). It surpassed estimates thrice and missed once in the trailing four quarters, delivering an average earnings surprise of 20.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for PINC’s fiscal 2025 (ending June 2025) earnings has inched down 0.8% in the past 30 days.

HealthEquity, Inc. (HQY - Free Report) presently carries a Zacks Rank #2 (Buy). It surpassed estimates in each of the trailing four quarters, delivering an average earnings surprise of 16.6%.

In the past 60 days, the Zacks Consensus Estimate for HQY’s fiscal 2025 (ending January 2025) earnings has remained stable.

Cencora, Inc. (COR - Free Report) currently carries a Zacks Rank of 2. COR surpassed estimates in each of the trailing four quarters, delivering an average earnings surprise of 4.9%.

In the past 30 days, the Zacks Consensus Estimate for its fiscal 2025 (ending September 2025) earnings has increased 2%.


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