Why BWX TECHNOLOGIES INC (NYSE:BWXT) qualifies as a good dividend investing stock.

Our stock screening tool has identified BWX TECHNOLOGIES INC (NYSE:BWXT) as a strong dividend contender with robust fundamentals. BWXT exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve into each aspect below.

Assessing Dividend for BWXT

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. BWXT has been assigned a 7 for dividend:

• Compared to an average industry Dividend Yield of 1.43, BWXT pays a better dividend. On top of this BWXT pays more dividend than 81.54% of the companies listed in the same industry.
• The dividend of BWXT is nicely growing with an annual growth rate of 7.06%!
• 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.
• BWXT pays out 31.34% of its income as dividend. This is a sustainable payout ratio.
• BWXT's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Health Analysis for BWXT

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. BWXT scores a 6 out of 10:

• BWXT has an Altman-Z score of 5.84. This indicates that BWXT is financially healthy and has little risk of bankruptcy at the moment.
• BWXT has a better Altman-Z score (5.84) than 75.38% of its industry peers.
• Looking at the Debt to FCF ratio, with a value of 4.14, BWXT is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
• BWXT has a Quick ratio of 1.88. This is in the better half of the industry: BWXT outperforms 73.85% of its industry peers.

Understanding BWXT's Profitability

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. BWXT was assigned a score of 6 for profitability:

• Looking at the Return On Assets, with a value of 9.82%, BWXT belongs to the top of the industry, outperforming 90.77% of the companies in the same industry.
• BWXT has a better Return On Equity (26.09%) than 93.85% of its industry peers.
• BWXT has a Return On Invested Capital of 10.82%. This is amongst the best in the industry. BWXT outperforms 92.31% of its industry peers.
• BWXT had an Average Return On Invested Capital over the past 3 years of 10.89%. This is above the industry average of 7.85%.
• The Profit Margin of BWXT (10.43%) is better than 76.92% of its industry peers.
• BWXT has a better Operating Margin (12.17%) than 75.38% of its industry peers.

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

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

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.