Why BAKER HUGHES CO (NASDAQ:BKR) qualifies as a good dividend investing stock.

BAKER HUGHES CO (NASDAQ:BKR) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NASDAQ:BKR demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

Deciphering NASDAQ:BKR's Dividend Rating

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NASDAQ:BKR has received a 7 out of 10:

• Compared to an average industry Dividend Yield of 3.77, BKR pays a bit more dividend than its industry peers.
• BKR has paid a dividend for at least 10 years, which is a reliable track record.
• BKR has not decreased their dividend for at least 10 years, which is a reliable track record.
• BKR pays out 28.06% of its income as dividend. This is a sustainable payout ratio.
• The dividend of BKR is growing, but earnings are growing more, so the dividend growth is sustainable.

Health Examination for NASDAQ:BKR

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:BKR has earned a 5 out of 10:

• The Altman-Z score of BKR (2.11) is better than 66.10% of its industry peers.
• The Debt to FCF ratio of BKR is 2.93, which is a good value as it means it would take BKR, 2.93 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of BKR (2.93) is better than 64.41% of its industry peers.
• A Debt/Equity ratio of 0.35 indicates that BKR is not too dependend on debt financing.

Profitability Insights: NASDAQ:BKR

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:BKR, the assigned 7 is noteworthy for profitability:

• BKR's Return On Assets of 7.77% is fine compared to the rest of the industry. BKR outperforms 67.80% of its industry peers.
• BKR's Return On Equity of 17.63% is fine compared to the rest of the industry. BKR outperforms 79.66% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 11.32%, BKR belongs to the top of the industry, outperforming 86.44% of the companies in the same industry.
• The 3 year average ROIC (9.18%) for BKR is below the current ROIC(11.32%), indicating increased profibility in the last year.
• The Profit Margin of BKR (10.70%) is better than 74.58% of its industry peers.
• In the last couple of years the Profit Margin of BKR has grown nicely.
• Looking at the Operating Margin, with a value of 12.42%, BKR is in the better half of the industry, outperforming 66.10% of the companies in the same industry.
• BKR's Operating Margin has improved in the last couple of years.
• BKR's Gross Margin has improved in the last couple of years.

More Best Dividend stocks can be found in our Best Dividend screener.

Our latest full fundamental report of BKR 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.