FMC (NYSE:FMC) Is Paying Out Less In Dividends Than Last Year

FMC Corporation (NYSE:FMC) is reducing its dividend from last year's comparable payment to $0.08 on the 15th of January. This means that the annual payment will be 2.3% of the current stock price, which is in line with the average for the industry. While the dividend yield is important for income investors, it is also important to consider any large share price moves, as this will generally outweigh any gains from distributions. FMC's stock price has reduced by 62% in the last 3 months, which is not ideal for investors and can explain a sharp increase in the dividend yield. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. FMC's Future Dividend Projections Seem Positive We aren't too impressed by dividend yields unless they can be sustained over time. Even though FMC is not generating a profit, it is still paying a dividend. Along with this, it is also not generating free cash flows, which raises concerns about the sustainability of the dividend. Looking forward, earnings per share is forecast to rise exponentially over the next year. If the dividend extends its recent trend, estimates say the dividend could reach 20%, which we would be comfortable to see continuing. NYSE:FMC Historic Dividend December 19th 2025 Check out our latest analysis for FMC Dividend Volatility The company has a long dividend track record, but it doesn't look great with cuts in the past. The dividend has gone from an annual total of $0.66 in 2015 to the most recent total annual payment of $0.32. This works out to be a decline of approximately 7.0% per year over that time. Generally, we don't like to see a dividend that has been declining over time as this can degrade shareholders' returns and indicate that the company may be running into problems. The Dividend's Growth Prospects Are Limited With a relatively unstable dividend, and a poor history of shrinking dividends, it's even more important to see if EPS is growing. In the last five years, FMC's earnings per share has shrunk at approximately 3.0% per annum. If earnings continue declining, the company may have to make the difficult choice of reducing the dividend or even stopping it completely - the opposite of dividend growth. However, the next year is actually looking up, with earnings set to rise. We would just wait until it becomes a pattern before getting too excited. FMC's Dividend Doesn't Look Great Overall, the dividend looks like it may have been a bit high, which explains why it has now been cut. The company's earnings aren't high enough to be making such big distributions, and it isn't backed up by strong growth or consistency either. The dividend doesn't inspire confidence that it will provide solid income in the future. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Still, investors need to consider a host of other factors, apart from dividend payments, when analysing a company. To that end, FMC has 3 warning signs (and 2 which shouldn't be ignored) we think you should know about. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. Mobile Infrastructure for Defense and DisasterThe next wave in robotics isn't humanoid. Its fully autonomous towers delivering 5G, ISR, and radar in under 30 minutes, anywhere.Get the investor briefing before the next round of contractsSponsored On Behalf of CiTech