Is NYSE:HRL suited for dividend investing?

Unearth the potential of HORMEL FOODS CORP (NYSE:HRL) as a dividend stock recommended by our stock screening tool. NYSE:HRL maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

Dividend Insights: NYSE:HRL

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:HRL scores a 8 out of 10:

• HRL's Dividend Yield is rather good when compared to the industry average which is at 3.48. HRL pays more dividend than 86.67% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.47, HRL pays a better dividend.
• On average, the dividend of HRL grows each year by 8.23%, which is quite nice.
• HRL has been paying a dividend for at least 10 years, so it has a reliable track record.
• HRL has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• HRL's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Understanding NYSE:HRL's Health

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:HRL has received a 5 out of 10:

• HRL has an Altman-Z score of 3.79. This indicates that HRL is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 3.79, HRL belongs to the top of the industry, outperforming 82.22% of the companies in the same industry.
• HRL has a Debt to FCF ratio of 4.26. This is in the better half of the industry: HRL outperforms 78.89% of its industry peers.
• HRL has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
• Looking at the Debt to Equity ratio, with a value of 0.30, HRL is in the better half of the industry, outperforming 62.22% of the companies in the same industry.

Understanding NYSE:HRL's 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:HRL, the assigned 5 is a significant indicator of profitability:

• HRL's Return On Assets of 5.90% is fine compared to the rest of the industry. HRL outperforms 70.00% of its industry peers.
• HRL has a better Return On Equity (10.26%) than 64.44% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 7.43%, HRL is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
• With a decent Profit Margin value of 6.55%, HRL is doing good in the industry, outperforming 73.33% of the companies in the same industry.
• Looking at the Operating Margin, with a value of 8.73%, HRL is in the better half of the industry, outperforming 74.44% of the companies in the same industry.

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

For an up to date full fundamental analysis you can check the fundamental report of HRL

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.