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

Last update: Dec 23, 2024

DONALDSON CO INC (NYSE:DCI) was identified as a stock worth exploring by dividend investors by our stock screener. NYSE:DCI 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.

Dividend Insights: NYSE:DCI

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

DCI's Dividend Yield is rather good when compared to the industry average which is at 1.71. DCI pays more dividend than 80.77% of the companies in the same industry.
DCI has been paying a dividend for at least 10 years, so it has a reliable track record.
DCI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
29.70% of the earnings are spent on dividend by DCI. This is a low number and sustainable payout ratio.
The dividend of DCI is growing, but earnings are growing more, so the dividend growth is sustainable.

A Closer Look at Health for NYSE:DCI

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:DCI has earned a 8 out of 10:

DCI has an Altman-Z score of 6.45. This indicates that DCI is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.45, DCI belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
DCI has a debt to FCF ratio of 1.89. This is a very positive value and a sign of high solvency as it would only need 1.89 years to pay back of all of its debts.
DCI's Debt to FCF ratio of 1.89 is amongst the best of the industry. DCI outperforms 83.85% of its industry peers.
A Debt/Equity ratio of 0.40 indicates that DCI is not too dependend on debt financing.
The current and quick ratio evaluation for DCI is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

A Closer Look at Profitability for NYSE:DCI

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:DCI has earned a 9 out of 10:

DCI has a better Return On Assets (13.83%) than 92.31% of its industry peers.
Looking at the Return On Equity, with a value of 27.28%, DCI belongs to the top of the industry, outperforming 90.77% of the companies in the same industry.
DCI has a Return On Invested Capital of 18.40%. This is amongst the best in the industry. DCI outperforms 92.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DCI is significantly above the industry average of 11.13%.
The 3 year average ROIC (18.29%) for DCI is below the current ROIC(18.40%), indicating increased profibility in the last year.
With a decent Profit Margin value of 11.56%, DCI is doing good in the industry, outperforming 80.00% of the companies in the same industry.
DCI's Profit Margin has improved in the last couple of years.
DCI has a better Operating Margin (15.25%) than 75.38% of its industry peers.
In the last couple of years the Operating Margin of DCI has grown nicely.
DCI's Gross Margin of 35.63% is fine compared to the rest of the industry. DCI outperforms 63.08% of its industry peers.

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

Check the latest full fundamental report of DCI 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.