A token dividend, flat for a decade — a growth holding in every respect, not income. Revvity pays $0.07 a quarter, $0.28 annualized, unchanged every year in the record shown from 2015 to 2025. Dividends of $35 million are about 18% of continuing free cash flow of about $198 million, a pass. Three cautions grade it warn: the trailing yield of 0.17% is far under the 1% income line, the rate has been flat for more than three years, and net debt is 3.1x EBITDA, in the review band.
Key risk: Life-sciences demand follows research funding and pharma spending cycles; the dividend is tiny against earnings, but the flat rate signals it is not a management priority.
Changes if: The rate rises, net debt/EBITDA falls below 3x, or free-cash-flow payout crosses 60%.
- ✓Cash-flow cover About 18% of FY2025 continuing free cash flow, pass (<60%).
- !Leverage 3.1x net debt/EBITDA, review band (3-4x), a caution.
- !Dividend history $0.07 flat every year since 2015; flat 3+ years is the caution band. No cut.
- !Yield / trap review Yield 0.17%, under the 1% line: a growth holding, not income. No trap pattern.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.