Analyzing NYSE:AU's Dividend Potential.

ANGLOGOLD ASHANTI PLC (NYSE:AU) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NYSE:AU demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

Evaluating Dividend: NYSE:AU

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:AU scores a 7 out of 10:

• Compared to an average industry Dividend Yield of 3.17, AU pays a better dividend. On top of this AU pays more dividend than 85.21% of the companies listed in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.27, AU pays a bit more dividend than the S&P500 average.
• The dividend of AU is nicely growing with an annual growth rate of 59.59%!
• AU has paid a dividend for at least 10 years, which is a reliable track record.
• AU pays out 24.30% of its income as dividend. This is a sustainable payout ratio.
• The dividend of AU is growing, but earnings are growing more, so the dividend growth is sustainable.

Looking at the Health

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:AU has achieved a 6 out of 10:

• An Altman-Z score of 3.13 indicates that AU is not in any danger for bankruptcy at the moment.
• AU has a Altman-Z score of 3.13. This is in the better half of the industry: AU outperforms 60.56% of its industry peers.
• The Debt to FCF ratio of AU is 2.45, which is a good value as it means it would take AU, 2.45 years of fcf income to pay off all of its debts.
• AU has a better Debt to FCF ratio (2.45) than 78.17% of its industry peers.
• AU has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
• Although AU does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
• AU has a Current Ratio of 2.18. This indicates that AU is financially healthy and has no problem in meeting its short term obligations.

Profitability Examination for NYSE:AU

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:AU, the assigned 8 is a significant indicator of profitability:

• AU has a better Return On Assets (7.75%) than 83.80% of its industry peers.
• Looking at the Return On Equity, with a value of 15.15%, AU belongs to the top of the industry, outperforming 86.62% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 10.64%, AU belongs to the top of the industry, outperforming 88.03% of the companies in the same industry.
• With an excellent Profit Margin value of 17.33%, AU belongs to the best of the industry, outperforming 87.32% of the companies in the same industry.
• AU's Profit Margin has improved in the last couple of years.
• AU has a better Operating Margin (26.86%) than 85.21% of its industry peers.
• AU's Operating Margin has improved in the last couple of years.
• With a decent Gross Margin value of 35.73%, AU is doing good in the industry, outperforming 76.76% of the companies in the same industry.
• In the last couple of years the Gross Margin of AU has grown nicely.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

Our latest full fundamental report of AU contains the most current fundamental analsysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.