Income Investors Can Sleep Well With MSA’s Dividend Despite 2023 Cash Flow Scare

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>William TempleTue, December 9, 2025 at 3:19 PM GMT+1 4 min read24/7 Wall St.MSA maintained its dividend through 2023 despite free cash flow covering only 68% of payments due to inventory buildup.The company generated $242M in free cash flow in 2024 against $79M in dividend payments for a 32.5% payout ratio.Net debt sits at $504M versus $491M in EBITDA with 12x interest coverage.If you’re thinking about retiring or know someone who is, there are three quick questions causing many Americans to realize they can retire earlier than expected. take 5 minutes to learn more hereMSA Safety (NYSE: MSA) pays $2.08 per share annually, yielding 1.28%. The company delivered its 53rd consecutive quarterly payment on December 10, 2025, maintaining an unbroken streak dating back to at least 2012. For income investors, the question is straightforward: can MSA keep this going?MetricValueAnnual Dividend$2.08 per shareDividend Yield1.28%Consecutive Quarters Paid53+Most Recent Increase3.9% (Q2 2025)5-Year Growth Rate4.2% CAGRMSA's dividend coverage is excellent. The company earned $7.09 per share over the trailing twelve months and paid out $2.08, producing an earnings payout ratio of 29.3%. That leaves roughly 71% of profits retained for reinvestment, debt reduction, or further dividend growth.The free cash flow picture requires closer examination. In 2024, MSA generated $296.4 million in operating cash flow, spent $54.2 million on capital expenditures, and delivered $242.2 million in free cash flow. Against $78.8 million in dividend payments, that's a FCF payout ratio of 32.5%. Very healthy.But 2023 tells a different story. Operating cash flow collapsed to $92.9 million due to a $51.6 million inventory build. Free cash flow came in at $50.1 million while dividends totaled $73.5 million. The FCF payout ratio spiked to 147%, meaning MSA paid more in dividends than it generated in free cash flow.Metric20242023AssessmentEarnings Payout Ratio26.0%26.7%HealthyFCF Payout Ratio32.5%146.7%2023 OutlierOperating CF Coverage3.8x1.3xStrong RecoveryThe company maintained the dividend through that cash flow squeeze, signaling commitment. 2024's recovery demonstrates that 2023 was a working capital anomaly, not a structural problem.This infographic evaluates MSA Safety Inc.'s dividend sustainability, highlighting strong financial metrics, comfortable payout ratios, and a robust balance sheet that supports consistent dividend growth.MSA carries $674 million in total debt against $1.30 billion in shareholders' equity, producing a debt-to-equity ratio of 0.52x. With $170 million in cash, net debt sits around $504 million. Against trailing EBITDA of $491 million, that's a net debt-to-EBITDA ratio of approximately 1.0x. 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