Why NYSE:BWXT is a Top Pick for Dividend Investors.

BWX TECHNOLOGIES INC (NYSE:BWXT) was identified as a stock worth exploring by dividend investors by our stock screener. NYSE:BWXT scores well on profitability, solvency and liquidity. At the same time it seems to pay a decent dividend. We'll explore this a bit deeper below.

A Closer Look at Dividend for NYSE:BWXT

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:BWXT was assigned a score of 7 for dividend:

• BWXT's Dividend Yield is rather good when compared to the industry average which is at 1.30. BWXT pays more dividend than 86.15% of the companies in the same industry.
• The dividend of BWXT is nicely growing with an annual growth rate of 7.23%!
• BWXT has been paying a dividend for at least 10 years, so it has a reliable track record.
• BWXT has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
• 33.83% 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.

Evaluating Health: 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 5.27 indicates that BWXT is not in any danger for bankruptcy at the moment.
• The Altman-Z score of BWXT (5.27) is better than 83.08% of its industry peers.
• With a decent Debt to FCF ratio value of 4.77, BWXT is doing good in the industry, outperforming 73.85% of the companies in the same industry.
• BWXT has a Current Ratio of 2.24. This indicates that BWXT is financially healthy and has no problem in meeting its short term obligations.
• BWXT has a Quick Ratio of 2.13. This indicates that BWXT is financially healthy and has no problem in meeting its short term obligations.
• Looking at the Quick ratio, with a value of 2.13, BWXT is in the better half of the industry, outperforming 78.46% of the companies in the same industry.

Profitability Examination for NYSE:BWXT

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:BWXT was assigned a score of 7 for profitability:

• Looking at the Return On Assets, with a value of 9.08%, BWXT belongs to the top of the industry, outperforming 90.77% of the companies in the same industry.
• BWXT's Return On Equity of 26.76% is amongst the best of the industry. BWXT outperforms 96.92% of its industry peers.
• The Return On Invested Capital of BWXT (10.77%) is better than 90.77% of its industry peers.
• BWXT had an Average Return On Invested Capital over the past 3 years of 10.82%. This is above the industry average of 8.14%.
• Looking at the Profit Margin, with a value of 10.00%, BWXT is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
• BWXT has a Operating Margin of 13.39%. This is amongst the best in the industry. BWXT outperforms 83.08% of its industry peers.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.