Why NYSE:BWXT qualifies as a good dividend investing stock.

Our stock screener has spotted BWX TECHNOLOGIES INC (NYSE:BWXT) as a good dividend stock with solid fundamentals. NYSE:BWXT shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

How We Gauge Dividend for NYSE:BWXT

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. NYSE:BWXT has received a 7 out of 10:

• Compared to an average industry Dividend Yield of 1.29, BWXT pays a better dividend. On top of this BWXT pays more dividend than 85.94% of the companies listed in the same industry.
• The dividend of BWXT is nicely growing with an annual growth rate of 7.23%!
• BWXT has paid a dividend for at least 10 years, which is a reliable track record.
• As BWXT did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
• 34.56% of the earnings are spent on dividend by BWXT. This is a low number and sustainable payout ratio.
• BWXT's earnings are growing more than its dividend. This makes the dividend growth sustainable.

How We Gauge Health for NYSE:BWXT

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:BWXT was assigned a score of 6 for health:

• An Altman-Z score of 5.23 indicates that BWXT is not in any danger for bankruptcy at the moment.
• With a decent Altman-Z score value of 5.23, BWXT is doing good in the industry, outperforming 79.69% of the companies in the same industry.
• BWXT has a Debt to FCF ratio of 5.69. This is in the better half of the industry: BWXT outperforms 68.75% of its industry peers.
• A Current Ratio of 2.18 indicates that BWXT has no problem at all paying its short term obligations.
• BWXT has a Current ratio of 2.18. This is in the better half of the industry: BWXT outperforms 60.94% of its industry peers.
• A Quick Ratio of 2.11 indicates that BWXT has no problem at all paying its short term obligations.
• BWXT has a better Quick ratio (2.11) than 79.69% of its industry peers.

Looking at the Profitability

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:BWXT, the assigned 7 is a significant indicator of profitability:

• Looking at the Return On Assets, with a value of 8.95%, BWXT belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
• BWXT has a Return On Equity of 26.34%. This is amongst the best in the industry. BWXT outperforms 95.31% of its industry peers.
• BWXT's Return On Invested Capital of 10.72% is amongst the best of the industry. BWXT outperforms 85.94% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for BWXT is above the industry average of 8.78%.
• With a decent Profit Margin value of 9.85%, BWXT is doing good in the industry, outperforming 76.56% of the companies in the same industry.
• The Operating Margin of BWXT (13.36%) is better than 85.94% of its industry peers.

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

Check the latest full fundamental report of BWXT for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.