Executive Summary
Intuit Inc. (NASDAQ: INTU) is best known for household names like TurboTax, QuickBooks, Credit Karma and Mailchimp. The company has evolved from selling packaged tax software into a platform that combines artificial intelligence (AI), data analytics and human experts to serve consumers and businesses across the tax, personal‑finance and small‑business ecosystems. Fiscal 2025 was another banner year—revenue grew 16 % year‑over‑year to $18.8 billion, non‑GAAP operating margin reached 40 % and the company returned $4 billion to shareholders through dividends and share repurchases . Management views capital returns as a core pillar of its financial discipline and has consistently raised the dividend at double‑digit rates. In August 2025 the board approved a quarterly dividend of $1.20 per share, 15 % higher than the prior year .
This report provides a multi‑faceted analysis of Intuit with an emphasis on its dividend structure and long‑term sustainability. It explores the company’s business model, key growth drivers, competitive environment, and capital allocation strategy. The report also applies the investment frameworks of Warren Buffett and Peter Lynch, highlighting how the company fares under different lenses. Ultimately, Intuit is presented as a high‑quality, technology‑enabled financial services platform that offers stable dividend growth but trades at a premium valuation.
1 Corporate and Strategic Profile: A Platform for Financial Success
1.1 Business Model and Market Ecosystem
Intuit operates a platform that targets two broad customer groups: consumers (taxpayers and individuals seeking financial products) and small‑to‑medium‑sized businesses (SMBs) plus their accountants. The company’s major offerings include:
TurboTax – software and service bundles for DIY and assisted tax preparation. TurboTax Live pairs AI with human tax experts to capture share in the assisted tax market, which management estimates at $37 billion . Credit Karma – a personal‑finance platform that provides free credit scores and offers recommendations for credit cards, loans and insurance. It produced 32 % revenue growth in fiscal 2025 . QuickBooks – accounting software for SMBs. The platform has expanded into payments, payroll, capital, bill‑pay and banking services, addressing a total addressable market (TAM) exceeding $186 billion across small and mid‑market segments . Mailchimp – an email‑marketing and automation platform used by SMBs to acquire and retain customers.
Intuit’s value proposition revolves around becoming the system of intelligence for financial activities: it combines AI agents with human expertise to automate workflows, provide real‑time insights and deliver personalized financial recommendations. The strategy has enabled management to increase online ecosystem revenue by 20 % in fiscal 2025 and deliver strong customer adoption across mid‑market and enterprise segments . With only 6 % penetration into its estimated $327 billion global TAM, Intuit believes it has ample runway for growth .
1.2 Growth Initiatives and Competitive Landscape
Intuit’s growth initiatives center on three “Big Bets”: (1) an AI‑driven expert platform that delivers “done‑for‑you” experiences across the business and consumer ecosystems; (2) expansion into the mid‑market segment with Intuit Enterprise Suite, which bundles accounting, payments, payroll and other services; and (3) consumer finance expansion through Credit Karma and new financial products. These initiatives are enabled by heavy investments in data, AI and human expertise .
The competitive landscape is intense. TurboTax competes with H&R Block and a fragmented group of tax preparers; QuickBooks competes with Sage, Xero, FreshBooks and numerous vertical‑specific apps; and Credit Karma competes with LendingTree, NerdWallet and bank‑run finance portals. However, Intuit’s deep data reservoir, AI capabilities and large installed base create switching costs and network effects that are rare in consumer finance. For example, QuickBooks’ ecosystem of accountants and SMBs reduces customer churn, and the integration with payments and payroll creates cross‑selling opportunities that competitors struggle to match.
1.3 Capital Allocation and Shareholder Returns
Intuit is disciplined in allocating capital. The company invests heavily in R&D, technology infrastructure and targeted acquisitions to accelerate growth . Excess cash is returned to shareholders via dividends and share repurchases. In fiscal 2025, 65 % of free cash flow (FCF) was returned to shareholders, comprising $1 billion in dividends and $3 billion in share repurchases . Management expects dividends to grow at or slightly ahead of earnings and maintains a policy of having at least $1 billion of cash on the balance sheet .
2 Core Business Segments and Operating Performance
2.1 Global Business Solutions (GBS)
The Global Business Solutions segment provides the QuickBooks ecosystem and related services. Revenue grew 18 % in fiscal 2025 to $11.1 billion, driven by strong adoption of online services, mid‑market expansion and cross‑selling of payments, payroll and capital products . QuickBooks Online paying customers increased, and average revenue per customer (ARPC) rose 14 % to $980 as customers adopted multiple services . The mid‑market offering, Intuit Enterprise Suite, saw new billed customers in Q4 nearly double from Q3 . Long‑term, management expects GBS revenue to grow 15 – 20 % annually .
2.2 Consumer Group
The Consumer segment includes TurboTax and associated tax services. Fiscal 2025 revenue grew 10 % to $4.9 billion . TurboTax Live—an assisted tax offering that pairs AI with human experts—grew 47 %, substantially above management’s long‑term growth target of 15 – 20 % . Intuit sees significant runway in the assisted tax category, especially as it partners with tax professionals and increases the use of AI agents to streamline filing processes .
2.3 Credit Karma and ProTax
Credit Karma provides personalized financial recommendations and generates revenue through referral fees. The business rebounded strongly—fiscal 2025 revenue grew 32 % to $2.3 billion . Growth was driven by increased traffic, higher monetization per member and cross‑pollination with TurboTax. ProTax, which offers professional tax software, generated revenue of $621 million, up modestly year‑over‑year .
2.4 Mailchimp and Mid‑Market Expansion
Mailchimp, acquired in 2021 for its marketing‑automation capabilities, faced integration challenges but remains a key component of the SMB platform. Intuit is investing to unify the Mailchimp experience within QuickBooks and to extend the offering to mid‑market customers. The mid‑market segment (businesses with $2.5 million to $100 million in revenue) is viewed as a major growth lever, with a total addressable market of $89 billion . Early traction with large accounting firms suggests the potential for material revenue contribution in coming years.
3 Dividend Philosophy, History and Structure
3.1 Dividend Policy and Philosophy
Intuit initiated its dividend in 2012, and management has emphasized consistent, disciplined growth ever since. The company aims to return ~65 % of free cash flow to shareholders over time, using a combination of dividends and share repurchases . During its 2026 investor‑day presentation management reiterated that dividends are expected to grow at or slightly ahead of earnings, reflecting confidence in the durability of the business .
3.2 Recent Dividend Actions and History
The board approved a quarterly dividend of $1.20 per share on August 21 2025, representing a 15 % increase over the prior‑year quarterly dividend . This payment is scheduled for October 17 2025 with a record date of October 9 2025 . Fiscal 2025 dividends total $4.16 per share, and the annual dividend for fiscal 2026 is projected at $4.80 per share .
Intuit has now raised its dividend for 14 consecutive years . Dividend history shows progressive increases: quarterly payments were $0.78 per share in 2023, $0.90 per share in 2024, $1.04 per share in early 2025 and $1.20 starting in October 2025 . The dividend yield remains modest—about 0.69 % at current prices —reflecting the stock’s rich valuation.
3.3 Dividend Coverage and Growth Metrics
Key metrics highlight the sustainability of Intuit’s dividend:
Payout ratio: Intuit’s payout ratio is around 31.6 % . This moderate payout reflects management’s desire to balance cash returns with reinvestment for growth. Free cash flow: Intuit generated $6.1 billion of free cash flow in fiscal 2025 and returned 65 % of it to shareholders via dividends and buybacks . Dividend growth: The dividend has grown at a 15 % compound annual rate over the past three years . The FY26 guidance calls for another 15 % increase in dividend per share to $4.80, aligning growth with earnings . Share buybacks: In fiscal 2025 Intuit repurchased $2.8 billion of stock, reducing share count and helping offset dilution from equity compensation .
3.4 Analysis of Dividend Sustainability
The combination of a moderate payout ratio, robust free cash flow, and diversified revenue streams suggests that Intuit’s dividend is highly sustainable. The company’s 40 % non‑GAAP operating margin and large cash balances support ongoing increases. Management maintains an investment‑grade credit rating and targets at least $1 billion in cash on hand to navigate economic cycles . Even during periods of macro uncertainty, Intuit’s subscription and services revenue provides stability; software purchases such as tax preparation and bookkeeping are critical to customers’ operations and compliance.
However, because Intuit trades at a high valuation (P/E ratios above the market average), its dividend yield remains below 1 %. Investors seeking high current income may find the yield unattractive. Instead, Intuit’s dividend appeals to those prioritizing growth in income over absolute yield. As long as the company can sustain double‑digit revenue and cash‑flow growth, dividend increases are likely to continue at a healthy pace.
4 Evaluating Intuit Through Buffett and Lynch Frameworks
4.1 The Buffett Lens: Searching for a Durable Moat
Warren Buffett’s modern investment philosophy emphasizes durable competitive advantages (“economic moats”), capable management and a reasonable price. How does Intuit measure up?
Understandable business: Intuit operates software and service platforms that most investors can grasp. The basic revenue drivers—subscriptions, transactions and advertising—are transparent. Economic moat: Intuit possesses a meaningful moat through network effects, switching costs and data scale. QuickBooks locks in customers by integrating accounting, payroll, payments and banking; TurboTax leverages decades of tax data and brand recognition; and Credit Karma’s 120 million members provide proprietary data for recommendations. These moats are reinforced by AI and machine‑learning models that improve with more data. Management quality: CEO Sasan Goodarzi and CFO Sandeep Aujla have executed well, expanding margins and reinvesting heavily in AI. The company has a track record of disciplined acquisitions (Credit Karma, Mailchimp) and consistent capital returns. Dual‑class shares are absent, and insiders own a small but significant share of stock, aligning interests. Financial strength: Intuit’s balance sheet shows net cash, moderate leverage and strong interest coverage. Free cash flow generation is robust and growing . Margin of safety: The stock trades at premium multiples relative to the market, leaving a thin margin of safety. The high valuation could compress if growth decelerates.
Overall, Buffett might admire Intuit’s moat and management but may hesitate due to valuation. The company is more akin to a “wonderful business at a wonderful price” rather than the cigar‑butt bargains of his early career.
4.2 The Lynch Lens: A Stalwart With Growth Catalysts
Peter Lynch categorized stocks into six types; Intuit fits somewhere between a “stalwart” and a “fast grower.” Lynch’s framework focuses on understanding the product, examining the balance sheet, checking the PEG ratio and identifying catalysts.
Invest in what you know: Millions of consumers use TurboTax and QuickBooks. An investor can easily evaluate Intuit’s products and brand loyalty by speaking with users and accountants. Balance sheet: Intuit’s balance sheet is strong, with significant cash and minimal debt . A solid current ratio and investment‑grade rating provide a cushion in downturns. PEG ratio: The low dividend yield and high P/E ratio may raise concerns, but the company’s earnings are growing at double‑digit rates. Lynch often favored companies with sustainable growth trading at reasonable PEG ratios; Intuit’s PEG appears moderate given its growth outlook. Catalysts: The AI‑driven expert platform, mid‑market expansion, integration of Mailchimp and cross‑selling through Credit Karma present multiple catalysts. Additionally, consistent dividend hikes signal management’s confidence .
A Lynch‑style investor might view Intuit as a growth stock with a powerful “story”—AI transforming financial services and new platforms unlocking underpenetrated markets. The modest dividend yield would be less of a concern if earnings and dividends continue to grow at 15 % or more.
5 Synthesis and Investment Thesis
5.1 Integrated Findings
The analysis reveals Intuit as a high‑quality, technology‑enabled financial platform with robust revenue growth, expanding margins and a disciplined capital allocation policy. The company operates in multiple large and growing markets—small‑business accounting, tax preparation, personal finance and marketing automation—each offering cross‑selling opportunities and high switching costs. Its investments in AI and data create a competitive edge that should endure. Dividend growth is strong and sustainable, but the yield remains low due to the stock’s premium valuation.
5.2 Bull vs. Bear Case
Bull case: Intuit continues to deliver mid‑teens revenue and earnings growth, driven by its AI‑enabled expert platform, mid‑market expansion and consumer finance initiatives. Free cash flow remains strong, enabling double‑digit dividend increases and share repurchases. The stock merits a premium valuation because of durable competitive advantages and long runway. Continued execution could lead to outsized total returns for shareholders who value both capital appreciation and growing income. Bear case: Growth may slow if economic conditions weaken or competition intensifies. Integration challenges (e.g., Mailchimp) and regulatory scrutiny could hamper progress. The high valuation leaves little room for error. If growth decelerates to single digits, the stock could undergo a multiple contraction, reducing total returns despite dividend growth.
5.3 Final Recommendation and Monitoring Framework
Intuit is not a typical high‑yield dividend play; rather, it is a dividend‑growth stock embedded in a transformative tech platform. Investors seeking reliable income with significant growth potential may find Intuit attractive despite its low current yield. The company’s commitment to return ~65 % of free cash flow to shareholders provides a clear roadmap for future dividend increases. However, valuation risk warrants careful entry points and ongoing monitoring.
Key metrics to monitor:
Revenue and operating margin: Ensure that growth remains in the double‑digit range and that non‑GAAP operating margin stays around 40 %. Free cash flow and capital returns: Track free cash flow generation and verify that management continues to allocate at least 60 % of FCF to dividends and buybacks. AI and platform adoption: Evaluate adoption of the Intuit Enterprise Suite and AI agents; strong customer engagement is a sign of durable competitive advantages. Dividend growth: Expect dividend increases at or above earnings growth; any deviation could signal changes in business outlook or capital allocation priorities.
Conclusion
Intuit exemplifies a modern tech‑enabled financial services company that blends high growth with shareholder‑friendly capital returns. Its dividend story is one of consistent double‑digit increases, underpinned by robust free cash flow and disciplined management. While the dividend yield is modest, the 15 % annual growth rate and the company’s long runway for expansion make Intuit a compelling choice for investors who prioritize total return and income growth over high current yield. As Intuit continues to harness AI to transform its platforms and deepen customer relationships, its ability to generate cash and grow dividends should remain intact.
Intuit is a financial technology platform focused on helping consumers and small businesses manage taxes, accounting, cash flow, and customer growth. Its portfolio spans TurboTax for consumer tax filing, QuickBooks for small‑business accounting and back‑office workflows, Credit Karma for consumer finance insights and matchmaking, and Mailchimp for SMB marketing and CRM. The company’s strategy is to connect these products so data flows where work happens, turning one‑off tasks into continuous, subscription‑based relationships that are easier to manage and monetize. That platform approach, combined with a large installed base and trusted brand, positions Intuit as a durable operator in the financial software category.
The company’s early history is rooted in simplifying complex financial chores for everyday users, and that original product ethos still shows up in how it designs software today. What began with desktop tools evolved into cloud services as customers moved online, and the business followed with QuickBooks Online, TurboTax Live assisted offerings, and a web of integrations to banks, processors, payroll providers, and third‑party apps. Intuit’s culture emphasizes customer‑backward problem solving, rapid experimentation, and shipping features that remove friction. Privacy and security are treated as first‑order requirements because the product handles sensitive financial data, and that emphasis on trust is core to adoption.
Leadership encourages decentralized decision‑making, empathy for user pain points, and measurable outcomes tied to customer success—attributes that help a platform serving very different users, from an independent contractor filing a return to a multi‑employee business running payroll and invoicing. The company adapts by leaning into automation and AI to eliminate low‑value manual tasks such as categorizing transactions, reconciling accounts, or validating tax documents. As the product surface has expanded, the business model has shifted from single‑purchase software to recurring subscriptions and usage‑based monetization. That transition shows up in QuickBooks Online seat growth and higher average revenue per customer through attached services like payroll, payments, and capital. On the consumer side, TurboTax has moved beyond pure DIY to live‑expert and full‑service options that capture customers who would otherwise use preparers, while Credit Karma matches users to financial products and builds loyalty through personalized insights. Mailchimp extends the platform into demand generation and customer retention, creating a marketing‑to‑money loop for small businesses inside the same ecosystem.
Human capital is a competitive lever for Intuit because the products sit at the intersection of regulation, financial accuracy, and user experience. Teams blend engineering, design, data science, and tax/accounting expertise, and incentives are aligned to adoption, retention, and customer outcomes rather than vanity metrics. That structure supports faster iteration without sacrificing compliance or trust. In the market, Intuit competes with point‑solution specialists and horizontal platforms: H&R Block and regional preparers in consumer tax; Xero, Sage, and various cloud accounting tools in SMB; payment processors and neobanks around invoicing and cash‑flow; and multiple email/CRM vendors in marketing. Intuit’s edge comes from workflow depth, the breadth of the suite, and the data network effects that improve recommendations and automation as usage compounds. Switching costs matter in accounting and tax because historical data, embedded workflows, and advisor relationships make migrations risky and time‑consuming for customers.
Key risks include seasonality in consumer tax, macro sensitivity in SMB formation and survival, regulatory and policy shifts, data‑privacy obligations, and competitive pricing pressures. The company mitigates seasonality by expanding the base of year‑round subscription services and by growing categories like payroll, payments, capital, and marketing that generate steady activity outside tax season. Policy changes in tax filing and consumer finance can alter product economics or acquisition channels, so Intuit invests in compliance, transparent communications, and product adaptability to absorb changes without disrupting customer workflows. Cybersecurity is treated as a perennial priority given the sensitivity of financial data; resilience and incident response are built into architecture and operations because reputational damage would be costly to repair. M&A integration also requires attention—especially where brands and user communities are strong—so product roadmaps and data policies are harmonized carefully to preserve trust while unlocking cross‑sell.
Intuit’s dividend philosophy fits a mature growth company that still sees substantial reinvestment opportunities. The core objective is to fund product innovation and platform expansion first, maintain a strong balance sheet, and then return excess cash through a mix of dividends and buybacks paced to free‑cash‑flow durability. Consistency matters more than headline yield: management prioritizes a payout that can survive downturns rather than stretching to meet short‑term targets. The shift to subscriptions and high‑retention services improves visibility into cash generation, which supports this approach. Corporate decisions directly influence dividend flexibility. Cloud migrations and attach‑rate expansion lift recurring revenue and margins over time; acquisitions like Credit Karma and Mailchimp extend the surface area for cross‑sell and deepen data advantages that feed automation and AI features. The result is a more diversified cash engine that relies less on a single season or product.
Stakeholder value creation is embedded in the platform model. Customers lower total cost of ownership and save time as accounting, taxes, payments, payroll, and marketing connect inside one system. Employees grow through learning programs and work on mission‑critical financial workflows that require craft and care. Partners and developers benefit from APIs and marketplaces that put their solutions in front of a large, engaged customer base. Communities gain from initiatives that support small‑business formation, financial inclusion, and responsible data use. Shareholders benefit when these flywheels reinforce each other: better outcomes lead to higher retention and expansion, which lead to stronger free cash flow that can be reinvested and, where appropriate, returned.
Financial discipline shows up in the order of operations: protect and scale core services; invest organically in AI, data, and security; pursue acquisitions that clearly strengthen the platform; and return excess cash without compromising optionality. Management aims to keep leverage conservative enough to withstand volatility and preserve capacity for product bets. Economic moats support dividend safety over time. Switching costs are meaningful in accounting and payroll; network effects emerge through advisor ecosystems, developer apps, and the credit marketplace; brand and compliance competence build trust; and scale improves unit economics in engineering, go‑to‑market, and support.
Governance and dividend policy are designed to tie leadership incentives to durable value creation—customer adoption and retention, sustainable growth, and cash‑flow quality—rather than purely to top‑line expansion. That alignment, plus regular communication of capital‑allocation priorities, helps set realistic expectations for investors about how the company balances growth with returns. Looking forward, the long‑term vision is to automate more of the financial back office and the tax process so that individuals and small businesses spend less time on chores and more time on decisions that grow their finances. AI copilots, richer data connections to financial institutions, and deeper integrations across the suite should, if executed well, expand both customer value and monetization opportunities.
The near‑term outlook hinges on several watch‑items: the pace of AI feature adoption and willingness to pay for premium tiers; competitive responses in accounting, tax, and marketing; policy or regulatory changes that affect consumer filing or data usage; and the health of SMB formation and survival. If the company continues to execute on product quality, security, and ecosystem depth, the thesis is straightforward: recurring, high‑retention workflows across taxes, accounting, payments, and marketing create resilient cash flows that support ongoing reinvestment and steady, sustainable capital returns.
Intuit Inc. (NASDAQ: INTU): Dividend Dynamics in a Fin‑Tech Powerhouse
At first glance, Intuit may seem like just another technology company—famous for household brands like TurboTax, QuickBooks, Credit Karma, and Mailchimp. Yet beneath these familiar names lies a meticulously crafted ecosystem that blends artificial intelligence, personalized financial insights, and a human-centered approach to financial management.
In fiscal year 2025, Intuit continued its impressive trajectory. Revenues surged 16% to $18.8 billion, driven by robust growth in consumer finance and small-business platforms. Operating margins expanded impressively to 40%, underscoring the company’s efficiency even as it scales. But perhaps most compelling for investors was Intuit’s disciplined approach to rewarding shareholders: a remarkable $4 billion was returned through dividends and share buybacks, reinforcing the company’s commitment to sustained investor value.
What makes Intuit particularly compelling is its distinct ability to harness the power of AI without losing sight of the human touch. TurboTax Live exemplifies this: pairing customers seamlessly with tax professionals in real-time, delivering personalized service at scale. Credit Karma similarly thrives by providing tailored credit solutions and financial products, resonating deeply with consumers’ desire for personalized financial guidance. QuickBooks, a lifeline for countless small businesses, continues to grow by intelligently integrating payroll, payments, and lending solutions that simplify complex financial tasks.
The secret behind Intuit’s success—and its investment appeal—lies in the profound “stickiness” of its platforms. Small businesses and individual users alike develop a strong reliance on these tools, embedding Intuit deep into their daily financial routines. This creates high switching costs and powerful network effects, characteristics Warren Buffett famously describes as economic “moats.”
Yet, Intuit is not resting on its laurels. It’s actively pursuing ambitious “Big Bets” to drive the next stage of growth. This includes expansion into the mid-market enterprise sector, leveraging its integrated AI-driven platforms to capture larger businesses, and tapping deeper into consumer finance through Credit Karma’s growing ecosystem. While the recent integration of Mailchimp encountered initial hurdles, management’s continued investment highlights their commitment to long-term strategic goals.
Intuit’s dividend philosophy further emphasizes its focus on longevity and sustainable growth. Since initiating dividends in 2012, Intuit has consistently delivered double-digit increases—an impressive feat reflecting management’s confidence and prudence. With a modest yet steadily growing yield, Intuit represents not just immediate returns but the promise of substantial future dividend growth, supported by strong free cash flow generation and disciplined financial stewardship.
Evaluating Intuit through investment lenses popularized by Warren Buffett and Peter Lynch further clarifies its appeal. Buffett’s principles—understandable business models, strong moats, effective management, and financial resilience—are clearly reflected in Intuit. CEO Sasan Goodarzi’s visionary yet grounded leadership is evident in strategic acquisitions like Credit Karma and Mailchimp, reinforcing Intuit’s competitive advantage.
Peter Lynch’s framework also resonates strongly here. Investors familiar with Intuit’s products have firsthand evidence of their indispensability in everyday life. Coupled with a robust balance sheet and identifiable growth catalysts—such as ongoing AI-driven innovation and mid-market expansion—Intuit emerges clearly as a Lynch “stalwart” with compelling growth dynamics.
Still, no investment comes without risks. Intuit faces intense competition across its key segments, and macroeconomic shifts could slow consumer spending or small-business growth. Additionally, regulatory scrutiny, particularly in areas such as tax filing (e.g., IRS Direct File expansion) and consumer finance compliance (as evidenced by past FTC actions), necessitates vigilance.
Yet, despite these considerations, Intuit’s future shines bright. Its platform-driven business model, relentless focus on innovation, and disciplined approach to capital allocation create a durable investment thesis. For dividend investors prioritizing growth in income and long-term capital appreciation over immediate yield, Intuit stands out distinctly.
In essence, investing in Intuit means betting not just on technology or financial services but on human adaptability itself—the timeless drive for simpler, smarter financial management solutions. As long as Intuit continues this mission, investors can remain confident in the company’s dividend growth trajectory and overall long-term success.
Key Performance Metrics for Intuit (INTU)
Free Cash Flow (FCF) Payout Ratio
The FCF payout ratio shows what portion of free cash flow is distributed to shareholders as dividends. Intuit has kept this ratio relatively low over time. On a 3‑year basis it has averaged about 20.23 % , over 5 years about 21.09 % and over 10 years roughly 23.43 % . Even on a 15‑year look‑back, the average is around 22.04 % . A low payout ratio means the company pays out only a small fraction of its cash after capital expenditures as dividends, keeping plenty of flexibility to invest in growth, pay down debt or build reserves. In plain terms, Intuit only sends about one‑fifth of its available cash to shareholders and retains the rest, which makes its dividend well‑covered and leaves room for future increases.
Dividend Growth Consistency
Intuit has a relatively short dividend history (it began paying dividends in 2011), but it has raised its payout every year since then. FinanceCharts lists 14 consecutive annual increases , and Koyfin reports that the dividend has increased for 12 straight years . The company’s dividend per share has grown at a compound annual rate of about 15 % per year across multiple time horizons . For example, average annual growth was 15.56 % over the past 12 months, 15.21 % over the past 36 months, 14.43 % over the past 60 months and 15.32 % over the past 120 months . To a novice, this simply means Intuit has been steadily making its quarterly dividend checks bigger each year, with increases of roughly fifteen cents on every dollar of dividends paid the year before.
Return on Invested Capital (ROIC)
ROIC measures how effectively a company turns the money invested by shareholders and lenders into profit. Higher ROIC indicates efficient use of capital and often signals competitive advantages. According to FinanceCharts, Intuit’s 5‑year average ROIC is 15.40 %, the 10‑year average is 25.39 %, the 15‑year average is 24.56 %, and the 20‑year average is 21.87 % . In novice terms, over the last two decades Intuit has generated roughly 22 cents of profit for every dollar invested in its operations . This strong and consistent ROIC suggests the company has profitable business lines and a durable competitive position, which supports its ability to grow dividends over time.
What This Means for Investors
Strong coverage and flexibility: With only about one‑fifth of free cash flow paid out as dividends , Intuit has room to both reinvest and increase payouts. Robust dividend growth: The company’s 10‑year dividend growth rate around 15 % annually shows management’s commitment to returning more cash to shareholders each year. Efficient capital use: Long‑term ROIC around 22 % implies that Intuit converts invested capital into earnings at a high rate, underpinning its ability to fund growth and dividends.
In summary, Intuit’s long‑term metrics reveal a business that generates high returns on invested capital, distributes a modest portion of its free cash flow to shareholders, and grows dividends at a double‑digit rate. For novice investors, this combination translates to a dividend that is both well‑covered and growing rapidly, supported by a fundamentally profitable and resilient business.
