Is NASDAQ:CALM a Good Fit for Dividend Investing?

CAL-MAINE FOODS INC (NASDAQ:CALM) has caught the attention of dividend investors as a stock worth considering. NASDAQ:CALM excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

Assessing Dividend Metrics for NASDAQ:CALM

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NASDAQ:CALM earns a 7 out of 10:

• With a Yearly Dividend Yield of 4.18%, CALM is a good candidate for dividend investing.
• CALM's Dividend Yield is rather good when compared to the industry average which is at 3.60. CALM pays more dividend than 89.13% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.21, CALM pays a better dividend.
• The dividend of CALM is nicely growing with an annual growth rate of 16.93%!
• CALM has paid a dividend for at least 10 years, which is a reliable track record.
• 33.06% of the earnings are spent on dividend by CALM. This is a low number and sustainable payout ratio.

A Closer Look at Health for NASDAQ:CALM

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. NASDAQ:CALM scores a 9 out of 10:

• An Altman-Z score of 8.27 indicates that CALM is not in any danger for bankruptcy at the moment.
• CALM's Altman-Z score of 8.27 is amongst the best of the industry. CALM outperforms 92.39% of its industry peers.
• CALM has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
• CALM has a Current Ratio of 5.45. This indicates that CALM is financially healthy and has no problem in meeting its short term obligations.
• The Current ratio of CALM (5.45) is better than 97.83% of its industry peers.
• A Quick Ratio of 4.30 indicates that CALM has no problem at all paying its short term obligations.
• The Quick ratio of CALM (4.30) is better than 97.83% of its industry peers.

Evaluating Profitability: NASDAQ:CALM

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. NASDAQ:CALM was assigned a score of 9 for profitability:

• CALM has a better Return On Assets (12.72%) than 93.48% of its industry peers.
• The Return On Equity of CALM (15.44%) is better than 79.35% of its industry peers.
• The Return On Invested Capital of CALM (12.02%) is better than 89.13% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for CALM is significantly above the industry average of 8.90%.
• The last Return On Invested Capital (12.02%) for CALM is well below the 3 year average (20.77%), which needs to be investigated, but indicates that CALM had better years and this may not be a problem.
• CALM has a better Profit Margin (11.94%) than 89.13% of its industry peers.
• In the last couple of years the Profit Margin of CALM has grown nicely.
• CALM's Operating Margin of 13.26% is amongst the best of the industry. CALM outperforms 80.43% of its industry peers.
• CALM's Operating Margin has improved in the last couple of years.
• CALM's Gross Margin has improved in the last couple of years.

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

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

Keep in mind

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.