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

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.

Understanding NYSE:HRL's Dividend

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:HRL has achieved a 7 out of 10:

• Compared to an average industry Dividend Yield of 3.58, HRL pays a better dividend. On top of this HRL pays more dividend than 84.62% of the companies listed in the same industry.
• HRL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.21.
• 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.

Analyzing Health Metrics

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 7 for health:

• HRL has an Altman-Z score of 4.08. 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 4.08, HRL belongs to the top of the industry, outperforming 81.32% of the companies in the same industry.
• HRL has a debt to FCF ratio of 3.17. This is a good value and a sign of high solvency as HRL would need 3.17 years to pay back of all of its debts.
• HRL has a Debt to FCF ratio of 3.17. This is in the better half of the industry: HRL outperforms 75.82% 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.
• A Current Ratio of 2.29 indicates that HRL has no problem at all paying its short term obligations.
• With a decent Current ratio value of 2.29, HRL is doing good in the industry, outperforming 72.53% of the companies in the same industry.
• HRL has a better Quick ratio (1.03) than 62.64% of its industry peers.

What does the Profitability looks like for NYSE:HRL

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:HRL has achieved a 5:

• The Return On Assets of HRL (5.95%) is better than 68.13% of its industry peers.
• HRL has a Return On Equity of 9.92%. This is in the better half of the industry: HRL outperforms 64.84% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 6.84%, HRL is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
• HRL's Profit Margin of 6.52% is fine compared to the rest of the industry. HRL outperforms 73.63% of its industry peers.
• HRL has a better Operating Margin (8.61%) than 73.63% of its industry peers.

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

Our latest full fundamental report of HRL contains the most current fundamental analsysis.

Disclaimer

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.