Why the dividend investor may take a look at NYSE:HRL.

Take a closer look at HORMEL FOODS CORP (NYSE:HRL), a stock of interest to dividend investors uncovered by our stock screener. NYSE:HRL excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

A Closer Look at Dividend for NYSE:HRL

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:HRL was assigned a score of 7 for dividend:

• Compared to an average industry Dividend Yield of 3.76, HRL pays a better dividend. On top of this HRL pays more dividend than 82.42% of the companies listed in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.33, 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 their dividend for at least 10 years, which is a reliable track record.

Health Assessment of NYSE:HRL

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:HRL, the assigned 6 reflects its health status:

• An Altman-Z score of 3.61 indicates that HRL is not in any danger for bankruptcy at the moment.
• HRL has a better Altman-Z score (3.61) than 78.02% of its industry peers.
• HRL has a debt to FCF ratio of 3.85. This is a good value and a sign of high solvency as HRL would need 3.85 years to pay back of all of its debts.
• With a decent Debt to FCF ratio value of 3.85, HRL is doing good in the industry, outperforming 78.02% of the companies in the same industry.
• A Debt/Equity ratio of 0.36 indicates that HRL is not too dependend on debt financing.
• With a decent Debt to Equity ratio value of 0.36, HRL is doing good in the industry, outperforming 60.44% of the companies in the same industry.
• Looking at the Quick ratio, with a value of 1.00, HRL is in the better half of the industry, outperforming 60.44% of the companies in the same industry.

Profitability Insights: NYSE:HRL

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:

• Looking at the Return On Assets, with a value of 5.42%, HRL is in the better half of the industry, outperforming 68.13% of the companies in the same industry.
• With a decent Return On Equity value of 9.72%, HRL is doing good in the industry, outperforming 64.84% of the companies in the same industry.
• The Return On Invested Capital of HRL (6.68%) is better than 71.43% of its industry peers.
• Looking at the Profit Margin, with a value of 6.37%, HRL is in the better half of the industry, outperforming 74.73% of the companies in the same industry.
• HRL has a better Operating Margin (8.39%) than 72.53% of its industry peers.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

Check the latest full fundamental report of HRL 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.