Updated 3/11/25
Logitech International S.A. (NASDAQ: LOGI) has built a strong reputation as a leader in computer accessories, gaming peripherals, and video conferencing solutions. From high-end keyboards and mice to webcams and speakers, Logitech has become a household name for consumers and businesses alike.
With a market cap of $14.14 billion, the company has established itself as a mid-sized tech player that balances innovation with financial discipline. While it might not be a high-yielding dividend stock, it has a solid track record of returning cash to shareholders. For those looking for a reliable dividend in the tech sector, Logitech is worth a closer look.
Key Dividend Metrics
📈 Forward Dividend Yield: 1.47%
💰 Forward Annual Dividend Rate: $1.38
📆 Next Dividend Date: September 25, 2024
📊 Payout Ratio: 32.44% (plenty of room for growth)
📈 5-Year Average Dividend Yield: 1.33%
🔁 Dividend Growth Streak: Stable but not aggressive
📉 Ex-Dividend Date: September 23, 2024
Dividend Overview
Logitech isn’t the first stock that comes to mind for dividend investors, but it has a respectable yield of 1.47%. That’s not sky-high, but it’s solid for a technology company that still prioritizes growth. The company has consistently paid dividends and maintains a healthy payout ratio of 32.44%, which means it has plenty of earnings left over for reinvestment.
Over the last five years, the dividend yield has averaged around 1.33%, reinforcing the idea that Logitech is committed to stable payouts. The upcoming ex-dividend date is September 23, 2024, so investors need to own shares before then to qualify for the next payout.
While some sectors offer higher yields, Logitech provides a balance of income and capital appreciation, making it a solid option for those who prefer tech stocks with dividends.
Dividend Growth and Safety
Logitech’s dividend growth has been steady rather than aggressive. The company doesn’t have the same long track record of annual increases as some traditional dividend stocks, but it has remained consistent in rewarding shareholders.
Is the Dividend Safe?
✅ Payout Ratio of 32.44% → Leaves room for reinvestment and potential increases
✅ Strong Cash Flow → Operating cash flow of $952 million and free cash flow of $654 million easily cover the dividend
✅ Low Debt Levels → Total debt stands at just $94.87 million, with a debt-to-equity ratio of 4.51%
One thing to keep an eye on is the decline in quarterly earnings growth, which fell 18.2% year over year. If earnings continue to trend downward, future dividend increases may slow. That said, Logitech has a current ratio of 2.14, meaning it has more than enough liquidity to manage short-term fluctuations.
The dividend is well-supported, but long-term sustainability will depend on the company’s ability to maintain profitability and cash flow growth.
Chart Analysis
The stock chart for Logitech International S.A. (LOGI) presents an interesting mix of technical signals. There has been notable movement over the past year, with clear trends and key levels that investors should pay attention to.
Moving Averages and Trend Direction
The 50-day moving average (orange line) has been on a strong upward trajectory since the start of the year, crossing above the 200-day moving average (blue line). This crossover, often referred to as a golden cross, is typically a bullish sign, indicating that momentum is shifting to the upside.
That said, the recent pullback in price brings LOGI closer to the 50-day moving average, which could act as a support level. If it holds, the stock may stabilize and attempt another push higher. However, a break below this level could signal further downside, potentially bringing the 200-day moving average into play as a secondary support area.
Volume and Market Participation
Trading volume has seen notable spikes, particularly during the strong rally earlier in the year and the correction that followed. These volume surges suggest that institutional investors may have been active during these price swings.
Recent volume has been somewhat average, indicating that the stock is consolidating and not experiencing strong accumulation or distribution. If volume picks up on a move higher, it would add conviction to a potential rebound. On the other hand, a sharp drop on high volume could indicate further downside pressure.
Relative Strength Index (RSI) and Momentum
The RSI indicator shows that the stock was in overbought territory earlier this year, which likely contributed to the recent pullback. Currently, RSI is trending downward but remains above oversold levels. This suggests that while momentum has cooled off, the stock is not in extreme bearish territory yet.
If RSI continues to drop, it could present a buying opportunity for those looking for a pullback entry. However, if it stabilizes around its current level, it could indicate a period of consolidation before the next significant move.
Recent Price Action
Looking at the past five trading sessions, price action has shown a mix of higher wicks and lower closes, which suggests some selling pressure at higher levels. The stock has been attempting to find support, but the lack of strong buying interest indicates that the short-term trend may still be uncertain.
The key level to watch right now is around $94, which is where the price is hovering near the 50-day moving average. A decisive move above this level could signal a resumption of the uptrend, while a failure to hold could lead to a deeper pullback.
Analyst Ratings
📊 Logitech International S.A. (NASDAQ: LOGI) has recently seen a mix of analyst upgrades and downgrades, reflecting a balanced outlook on the stock. The current consensus rating stands at “Hold,” with an average price target of $101.50, suggesting some potential upside from current levels.
🔼 Upgrades
⭐ Wedbush – On March 7, 2025, Wedbush upgraded Logitech from “Neutral” to “Outperform” and raised its price target from $100 to $125. Analysts pointed to strong earnings growth and effective cost management as key reasons for their optimism. They also highlighted successful product launches and expanding market share in the gaming and video conferencing segments, which they believe will continue to drive revenue in the coming quarters.
🔽 Downgrades
⚠️ BofA Securities – On February 28, 2025, BofA Securities downgraded Logitech from “Neutral” to “Underperform” and cut its price target from $105 to $90. Analysts expressed concerns over margin pressures and rising competition in the peripherals market, which could limit Logitech’s ability to maintain its current pace of growth. They also noted potential pricing challenges as competitors introduce lower-cost alternatives in key product categories.
📉 JPMorgan Chase & Co. – On January 29, 2025, JPMorgan lowered its price target on Logitech from $100 to $96 while maintaining a “Neutral” rating. This adjustment was driven by a more cautious outlook on near-term revenue growth, with analysts citing headwinds in certain product segments and a possible slowdown in demand for premium accessories.
📌 Overall, the latest analyst actions reflect a mixed sentiment, with some firms seeing continued strength in Logitech’s business while others remain cautious about competitive pressures and market conditions.
Earning Report Summary
Logitech’s latest earnings report shows a company that’s holding its ground and even gaining momentum. The tech giant reported $1.34 billion in sales, marking a 7% increase from the same period last year. That’s a solid sign that demand for its products remains strong, even in a competitive market.
Profitability also got a boost. Logitech’s gross margin came in at 42.9%, which is an improvement from last year. That means the company is keeping costs under control while still bringing in healthy revenue. Operating income followed suit, with GAAP operating income at $235 million, up 6% year-over-year, and non-GAAP operating income rising 7% to $266 million.
Earnings per share (EPS) told a mixed story. GAAP EPS came in at $1.32, which was actually down 15% from last year. But if you look at the non-GAAP numbers, EPS actually increased 4% to $1.59. That suggests some one-time costs or accounting adjustments affected the GAAP number, but underlying earnings power remains strong.
Cash flow continues to be one of Logitech’s strong suits. The company generated $371 million in operating cash flow, which helped maintain a cash balance of $1.5 billion. That kind of liquidity gives Logitech the flexibility to invest in future growth and continue rewarding shareholders. Speaking of shareholder returns, the company repurchased $200 million worth of shares during the quarter, a move that signals confidence in its future performance.
Thanks to its solid numbers, Logitech also raised its full-year guidance. The company now expects revenue between $4.54 billion and $4.57 billion, up from its previous forecast. That means sales growth of 5.4% to 6.4%, which is an encouraging outlook. Non-GAAP operating income projections also got a lift, now expected to be $755 to $770 million, representing 8% to 10% growth.
It’s clear that Logitech is finding ways to navigate the current market while keeping its financials in good shape. With strong sales, improving margins, and a commitment to returning value to shareholders, the company is positioning itself well for continued success. The raised guidance suggests management is optimistic about what’s ahead, and for investors, that’s always a good sign.
Financial Health and Stability
Beyond dividends, Logitech has a strong financial foundation. The company generates steady revenue, maintains profitability, and operates with minimal debt—qualities that make it attractive for long-term investors.
- Revenue: $4.56 billion (trailing twelve months)
- Profit Margin: 14.38% (healthy for its industry)
- Return on Equity: 30.52% (strong shareholder value creation)
- Total Cash: $1.5 billion (ample liquidity)
- Debt-to-Equity Ratio: 4.51% (very low, reducing financial risk)
With a strong balance sheet and a solid cash position, Logitech is well-positioned to weather economic downturns while continuing to fund dividends and growth initiatives.
Valuation and Stock Performance
Logitech is currently trading at $92.68, putting it near the middle of its 52-week range of $74.72 to $105.65. While it’s not at bargain levels, the valuation remains reasonable for a company with strong fundamentals.
- Trailing P/E: 22.13
- Forward P/E: 17.39 (suggests future earnings growth)
- Price-to-Book Ratio: 6.67
- Enterprise Value/EBITDA: 16.62
Compared to some high-growth tech stocks, these multiples are fairly moderate. The forward P/E of 17.39 suggests the market expects steady earnings growth ahead, making it a reasonably priced stock for those seeking a mix of income and long-term appreciation.
Logitech’s 50-day moving average is $94.24, which is slightly above the current price. This suggests that the stock is hovering around a technical support level. If the stock pulls back further, it could present an even better entry point for dividend investors.
Risks and Considerations
Even well-run companies come with risks, and Logitech is no exception. Here are some factors to keep in mind.
🔻 Declining Earnings Growth → The company’s quarterly earnings dropped 18.2% year over year. If this trend continues, it could impact future dividend growth.
🔻 Consumer Electronics Cyclicality → Logitech’s business is tied to consumer and enterprise spending, which can fluctuate with economic conditions.
🔻 Competitive Pressures → The peripherals market is becoming increasingly competitive, with larger tech companies introducing their own accessories and software-driven solutions.
🔻 Valuation Risks → While the stock isn’t overpriced, it’s not trading at a major discount either. A weaker-than-expected earnings report could lead to a price correction.
Final Thoughts
Logitech may not be a traditional dividend stock, but it has a lot going for it. The company offers a reasonable yield, a low payout ratio, and a strong balance sheet with plenty of cash. For investors looking for income from the tech sector, this stock provides a compelling mix of dividend stability and long-term growth potential.
While Logitech’s dividend isn’t the highest in the market, its financial health and consistent cash flow make it a reliable choice. The key will be monitoring earnings trends and competitive pressures to ensure the company can continue delivering steady dividends. For those willing to hold through market cycles, Logitech offers a steady and sustainable dividend with room for future growth.
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