Dividends serve as a reward for investors, almost like a thank you for having faith in and sticking with the company and helping to drive the company’s shares to new heights. They also tend to follow increases or decreases in the company’s price per share.
With this in mind, does recent stock market superstar Zebra Technologies (ZBRA) pay a dividend? And would a dividend (or a lack thereof) make it a stock worth investing in?
Zebra Technologies: What Does It Do?
Zebra Technologies — formally Zebra Technologies Corporation — is a global enterprise mobile computing company that develops, manufactures, and sells technology that helps companies analyze in real time.
From rugged mobile computers and tablets to intelligent software and solutions, Zebra excels at producing the kinds of smart labels and barcodes that those in the manufacturing, retail, supply chain, healthcare, and government industries depend on daily.
While it has been around since 1969 and has been publicly traded since 1991, this embrace of smart technologies didn’t come until the mid 2000s. Since then, Zebra Technologies has steadily and consistently seen its price per share rise from under $50 a share in 2004 to nearly $550 a share in 2021.
Does Zebra Technologies Pay A Dividend?
At this point in time, Zebra Technologies does not pay its shareholders a dividend.
While this shouldn’t be seen as a dealbreaker for retail investors and traders hoping to get in on Zebra Technologies’ stock market success, it is certainly a disappointment — after all, a dividend is both a nice reward for those who have stuck with a company through thick and thin and a good way to bring in more investors who will stick around for the long haul.
This might deter some retail investors and traders from buying shares in Zebra Technologies, but there’s more to a company’s stock than just a dividend. There are other factors to consider, as well things like:
- size of the market,
- company competition, and
- its stock forecast.
How Big Is The Market Size Zebra Is Going After?
Needless to say, the world of mobile computing, specialty printers, and intelligent software and solutions is a pretty massive one. Because of this, Zebra Technologies isn’t the only one trying to go after this market. However, the company is definitely one of the most successful.
Just take a look at the company’s market share, which tells us just how much of the market is controlled by Zebra and its products: for tablets and computers, Zebra’s market share is 50%. In MS printing, Zebra’s market share is 40%. In barcode scanning, it’s 30%.
In each of these industries, Zebra completely dominates the market. The second place competitors in tablets and computers, MS printing, and barcode scanning can’t even come close: Their market shares are 15%, 12%, and 24%, respectively.
It’s an enormous market, to be sure, but it’s one that Zebra has continued to keep a strong hold on for over 50 years now.
Who Competes With Zebra Technologies?
Zebra’s top competitors include Honeywell International (HON), Brady Corporation, Domino Printing, Markem-Imaje, Entrust Datacard, and Catapult.
These competitors are a mix of private companies, public companies, and subsidiaries, but they all have one thing in common: none of them have been able to trounce Zebra in tablets and computers, MS printing, or barcode scanning. They’re all well beneath Zebra Technologies in each of these markets.
That’s not to say that they couldn’t eventually put its operations into overdrive and release an innovative product that manages to shrink Zebra’s market share in one field, but it’s both unlikely and unrealistic to expect one of these competitors to come along and best Zebra in all three fields.
Why Is Zebra Stock Going Up?
Zebra Technologies stock continues to rise for several key reasons, the most notable being that its earnings only continue to grow with each passing year, even after over 50 years in business.
This is both incredibly rare and impressive (not to mention, it has a historical EPS growth rate of over 25% and a projected growth of over 21% over the course of the next year).
Beyond this, Zebra continually demonstrates a remarkable asset utilization ratio: For each dollar in assets, the company gets $0.92 in sales. With an industry average of $0.84, Zebra’s $0.92 is very notable.
Plus, Zebra’s earning estimates revisions have been extremely promising over the past month or so. All of these factors have come together to drive Zebra’s stock perpetually upward.
Is ZBRA A Good Stock To Buy?
While Zebra Technologies Corporation disappointingly does not provide its shareholders with any sort of dividend at all, ZBRA is still an undoubtedly good stock for investors and traders to buy. Its success story spans half a century at this point, with no signs of an ending for that story in sight.
Zebra completely dominates several markets. The company repeatedly trounces its competition, and its price per share manages to top itself again and again, soaring to new heights with each passing year.
The world of technology has changed quite a bit since Zebra’s founding in 1969, and there’s no doubt that it will only continue to change at an even faster rate as time moves forward, but one thing is certain about Zebra: The company has proven it can adapt, and this makes it a great addition to any portfolio.
The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.