Income Investors Should Know That Rockwell Automation, Inc. (NYSE:ROK) Goes Ex-Dividend Soon

Explore Rockwell Automation's Fair Values from the Community and select yours

Rockwell Automation, Inc. (NYSE:ROK) stock is about to trade ex-dividend in 3 days. The ex-dividend date is one business day before a company's record date, which is the date on which the company determines which shareholders are entitled to receive a dividend. The ex-dividend date is of consequence because whenever a stock is bought or sold, the trade takes at least one business day to settle. Accordingly, Rockwell Automation investors that purchase the stock on or after the 18th of August will not receive the dividend, which will be paid on the 10th of September.

The company's next dividend payment will be US$1.31 per share. Last year, in total, the company distributed US$5.24 to shareholders. Based on the last year's worth of payments, Rockwell Automation stock has a trailing yield of around 1.5% on the current share price of US$349.01. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! That's why we should always check whether the dividend payments appear sustainable, and if the company is growing.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Rockwell Automation is paying out an acceptable 61% of its profit, a common payout level among most companies. A useful secondary check can be to evaluate whether Rockwell Automation generated enough free cash flow to afford its dividend. Thankfully its dividend payments took up just 44% of the free cash flow it generated, which is a comfortable payout ratio.

It's positive to see that Rockwell Automation's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut.

View our latest analysis for Rockwell Automation

Click here to see the company's payout ratio, plus analyst estimates of its future dividends.NYSE:ROK Historic Dividend August 14th 2025

Have Earnings And Dividends Been Growing?

Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. If earnings fall far enough, the company could be forced to cut its dividend. With that in mind, we're encouraged by the steady growth at Rockwell Automation, with earnings per share up 7.9% on average over the last five years. While earnings have been growing at a credible rate, the company is paying out a majority of its earnings to shareholders. Therefore it's unlikely that the company will be able to reinvest heavily in its business, which could presage slower growth in the future.

Story Continues

Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. In the last 10 years, Rockwell Automation has lifted its dividend by approximately 7.3% a year on average. We're glad to see dividends rising alongside earnings over a number of years, which may be a sign the company intends to share the growth with shareholders.

Final Takeaway

Is Rockwell Automation worth buying for its dividend? Earnings per share growth has been modest and Rockwell Automation paid out over half of its profits and less than half of its free cash flow, although both payout ratios are within normal limits. Overall, it's hard to get excited about Rockwell Automation from a dividend perspective.

With that in mind, a critical part of thorough stock research is being aware of any risks that stock currently faces. Case in point: We've spotted 1 warning sign for Rockwell Automation you should be aware of.

Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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