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

Last update: Aug 5, 2024

HORMEL FOODS CORP (NYSE:HRL) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NYSE:HRL demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

A Closer Look at Dividend for NYSE:HRL

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:HRL earns a 7 out of 10:

HRL's Dividend Yield is rather good when compared to the industry average which is at 3.74. HRL pays more dividend than 80.43% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, HRL pays a better dividend.
On average, the dividend of HRL grows each year by 8.23%, which is quite nice.
HRL has paid a dividend for at least 10 years, which is 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.

Health Assessment of NYSE:HRL

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:HRL was assigned a score of 5 for health:

An Altman-Z score of 3.71 indicates that HRL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.71, HRL is in the better half of the industry, outperforming 79.35% of the companies in the same industry.
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.
HRL has a Debt to FCF ratio of 3.85. This is in the better half of the industry: HRL outperforms 78.26% of its industry peers.
HRL has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
HRL has a Debt to Equity ratio of 0.36. This is in the better half of the industry: HRL outperforms 60.87% of its industry peers.

Profitability Insights: NYSE:HRL

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:HRL scores a 5 out of 10:

Looking at the Return On Assets, with a value of 5.42%, HRL is in the better half of the industry, outperforming 69.57% of the companies in the same industry.
The Return On Equity of HRL (9.72%) is better than 63.04% of its industry peers.
HRL's Return On Invested Capital of 6.68% is fine compared to the rest of the industry. HRL outperforms 69.57% of its industry peers.
With a decent Profit Margin value of 6.37%, HRL is doing good in the industry, outperforming 73.91% of the companies in the same industry.
HRL has a better Operating Margin (8.39%) than 70.65% of its industry peers.

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

Our latest full fundamental report of HRL 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.