Updated 3/11/25
Linde plc (LIN) is a global powerhouse in the industrial gas and engineering industry, supplying essential materials that keep the world running. Whether it’s medical oxygen for hospitals, hydrogen for energy solutions, or gases for semiconductor production, Linde plays a critical role in modern infrastructure.
For dividend investors, Linde stands out as a company with a solid track record of shareholder returns. While the yield isn’t the highest in the market, the company makes up for it with consistent dividend growth and financial strength. Investors looking for reliability over flashy payouts may find Linde an attractive addition to their portfolios.
Key Dividend Metrics
📈 Forward Dividend Yield: 1.30%
💰 Annual Dividend Rate: $6.00
📊 Payout Ratio: 40.82%
🔄 5-Year Dividend Growth: Strong and consistent
📅 Next Dividend Payment: March 27, 2025
⏳ Ex-Dividend Date: March 13, 2025
Dividend Overview
Linde isn’t the stock for investors chasing high yields. Instead, it focuses on steady, sustainable dividend growth. The current yield of 1.30% might seem modest, but the company has a strong history of increasing payouts year after year.
One of Linde’s biggest advantages is the stability of its business. Industrial gases are essential across various sectors, from healthcare to manufacturing, meaning the company generates reliable cash flow regardless of economic cycles. That kind of predictability allows Linde to comfortably return cash to shareholders without overextending itself.
With a payout ratio of 40.82%, Linde maintains a healthy balance between rewarding investors and reinvesting in future growth. Companies with payout ratios in this range tend to have the flexibility to continue growing dividends even if economic conditions weaken.
Dividend Growth and Safety
For income investors, it’s not just about what a company pays today, but what it will pay in the future. Linde has done an excellent job of increasing its dividend over time. While it’s not considered a Dividend Aristocrat, it has demonstrated a commitment to consistent raises, making it an appealing choice for those who prioritize dividend growth.
The company generates plenty of cash to cover these payouts. With $9.42 billion in operating cash flow and $3.08 billion in levered free cash flow, Linde isn’t stretching itself to pay dividends. This means investors don’t have to worry about dividend cuts, even in tough economic conditions.
Another positive factor is Linde’s ability to pass costs onto customers. Inflation has been a concern across industries, but essential products like industrial gases tend to have pricing power. That helps Linde maintain strong profit margins, which in turn supports dividend growth.
Chart Analysis
The chart for Linde plc (LIN) shows a stock that has been in recovery mode after a period of decline. Looking at the price action, moving averages, volume, and relative strength index (RSI), there are several key takeaways that can help investors understand the current trend and potential next moves.
Price Action and Moving Averages
The stock has been climbing steadily in recent weeks, rebounding from a low near 410 and pushing past its 200-day moving average. Currently, it sits at 462.06 after reaching a high of 471.18 during the session. The recent price action shows resilience, with buyers stepping in at lower levels to push the stock back toward its prior highs.
The 50-day moving average, which had previously been trending downward, is now curling up, suggesting momentum is building. The 200-day moving average remains mostly flat, showing the stock is still in a broader consolidation phase but with potential for a breakout if buyers maintain control. The crossover of the 50-day above the 200-day could be an early bullish signal if the stock can sustain this strength.
Volume and Market Participation
The volume for the latest session came in at around 3.13 million shares, which is in line with recent trading activity. There hasn’t been an overwhelming surge in volume, but it’s clear that buyers are gradually returning to the stock. The volume spike that occurred during the previous decline indicated strong selling pressure, but the lack of excessive volume on the way up suggests a more measured accumulation phase.
For a more convincing rally, the stock would ideally need to see an uptick in volume to confirm that institutional investors are stepping in more aggressively. Without that, there’s still a risk of some sideways movement or a potential retest of lower levels before a sustained breakout.
RSI and Momentum
The relative strength index (RSI) is currently in neutral territory, sitting somewhere below the overbought threshold of 70. This suggests that while the stock has gained some momentum, it hasn’t yet reached an extreme level where a pullback would be expected.
Earlier in the chart, the RSI dipped into oversold levels when the stock hit its recent bottom, and the subsequent rebound has followed a classic recovery pattern. The key now is whether RSI continues to push higher or starts to roll over, which could indicate that the current move is losing steam.
If RSI remains strong without hitting extreme overbought conditions, it would support the case for further upside. On the other hand, if it starts to weaken while price is still rising, that could be an early warning sign of exhaustion.
Analyst Ratings
In recent months, Linde plc (LIN) has seen a mix of analyst upgrades and downgrades, reflecting different perspectives on the company’s outlook and valuation.
Upgrades
📈 TD Cowen – On January 13, 2025, TD Cowen upgraded Linde from a hold to a strong buy, raising the price target from $480 to $515. The firm cited the company’s strong financial performance and a favorable industry outlook as key reasons for the upgrade.
📊 Mizuho – On April 18, 2024, Mizuho upgraded Linde from neutral to buy, setting a price target of $510. Analysts pointed to Linde’s ability to consistently grow earnings and execute operational efficiencies, which improve its long-term value.
Downgrades
📉 Erste Group Bank – On November 19, 2024, Erste Group Bank downgraded Linde from buy to hold, citing concerns about the stock’s valuation. Analysts believe the recent price appreciation has priced in much of the upside potential, making it less attractive at current levels.
📉 Citigroup – On December 18, 2024, Citigroup maintained a hold rating on Linde but adjusted its price target from $490 to $480. The firm expressed a more cautious stance on Linde’s near-term growth, mentioning macroeconomic pressures that could impact industrial demand.
Consensus Price Target
🔎 As of the latest data, the average analyst price target for Linde stands at approximately $500.50. This suggests an expected upside of around 10.26% from the current stock price. Analysts remain divided on whether the stock’s valuation leaves much room for further gains, but its long-term stability and growth potential continue to support its case for investment.
Earnings Report Summary
Linde just dropped its latest earnings report, and overall, it was another strong showing for the industrial gas giant. Despite some macroeconomic headwinds, the company managed to keep things steady, delivering solid growth in both earnings and margins.
Fourth Quarter 2024 Highlights
Linde pulled in $1.725 billion in net income, marking a 12% increase from last year’s fourth quarter. That’s an impressive jump, showing that even with some external challenges, the company is still managing to grow. Earnings per share (EPS) came in at $3.60, which was up from $3.21 a year ago. On an adjusted basis, EPS reached $3.97, slightly ahead of what analysts were expecting.
The company’s revenue for the quarter remained strong, holding steady at around $33 billion for the full year. Even though sales growth wasn’t off the charts, Linde’s focus on improving efficiency and cutting costs helped boost profitability.
Breaking Down the Regional Performance
- Americas: Business in North and South America was a major bright spot, with strong demand from healthcare, manufacturing, and energy customers. Linde’s investments in infrastructure have helped maintain its dominance in this region.
- Europe, Middle East & Africa (EMEA): This region had a more mixed quarter. Economic conditions were a bit tougher, and currency fluctuations put some pressure on results. However, Linde still managed to hold its ground thanks to long-term contracts and steady demand from essential industries.
- Asia-Pacific (APAC): The APAC region saw solid growth, especially in sectors like electronics and clean energy. As more countries ramp up their renewable energy projects, Linde is positioning itself to take full advantage of these opportunities.
Looking Ahead
For the first quarter of 2025, Linde expects earnings per share to land somewhere between $3.85 and $3.95, which would represent another year-over-year increase. The company did note that foreign exchange rates and global economic uncertainty could create some bumps in the road, but overall, leadership remains optimistic. CEO Sanjiv Lamba emphasized that Linde is staying focused on strategic investments and efficiency improvements to keep momentum going.
All in all, it was a strong quarter and a solid year for Linde. The company continues to execute well, balancing profitability with long-term growth initiatives. As long as demand for industrial gases remains steady across key industries, Linde seems well-positioned to keep delivering for shareholders.
Financial Health and Stability
A strong balance sheet is crucial for any company paying dividends, and Linde checks the right boxes.
- Profit margin: 19.89%
- Operating margin: 27.93%
- Return on equity: 16.72%
- Total cash: $4.85 billion
- Total debt: $22.61 billion
The company does carry a significant amount of debt, but it remains well-managed. With a debt-to-equity ratio of 57.25%, Linde isn’t overly leveraged compared to industry peers.
The return on assets and equity metrics also suggest the company is making efficient use of its capital. That’s important for long-term investors because well-run companies tend to compound their value over time, benefiting both share price appreciation and dividend growth.
Valuation and Stock Performance
Linde isn’t a cheap stock, and that’s something investors need to consider.
- Price-to-earnings ratio: 33.93 (trailing), 28.01 (forward)
- Price-to-book ratio: 5.74
- PEG ratio: 2.50
These valuation metrics suggest that the stock trades at a premium. However, high-quality companies rarely come at bargain prices. Investors have been willing to pay up for Linde because of its consistent growth, financial stability, and market dominance.
Over the past year, the stock has ranged from $410.69 to $487.49, and it’s currently sitting around $454.74. It remains close to its 200-day moving average of $451.38, suggesting it has been relatively stable despite market fluctuations.
With a beta of 0.95, Linde isn’t overly volatile, making it a more predictable stock for long-term investors. That’s a key advantage for those who prefer steady returns over wild price swings.
Risks and Considerations
No stock is without risk, and Linde has a few factors that investors should keep in mind.
- High Valuation – The stock is expensive compared to historical levels, which could limit future price appreciation if growth slows.
- Debt Load – While manageable, Linde does carry a significant amount of debt, which could become a concern in a rising interest rate environment.
- Economic Sensitivity – While industrial gases are essential, some sectors that Linde serves (like manufacturing) could reduce spending in an economic downturn.
- Currency Fluctuations – As a global company, Linde is exposed to foreign exchange risk, which can impact revenue and earnings.
These aren’t deal-breakers, but they’re factors that investors should consider when deciding whether Linde fits their strategy.
Final Thoughts
Linde isn’t the stock for those looking for the highest dividend yield, but it’s a great choice for investors who prioritize consistency and dividend growth. With a reasonable payout ratio, strong cash flow, and a recession-resistant business model, the company is well-positioned to continue rewarding shareholders.
The biggest downside is its high valuation, which means future returns might not be as strong if growth slows. However, for those willing to pay for quality, Linde remains a strong option for a long-term, dividend-focused portfolio.
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