Why NYSE:HRL provides a good dividend, while having solid fundamentals.

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.

Analyzing Dividend Metrics

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NYSE:HRL has received a 7 out of 10:

• Compared to an average industry Dividend Yield of 3.80, HRL pays a better dividend. On top of this HRL pays more dividend than 83.15% of the companies listed in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.22, HRL pays a better dividend.
• The dividend of HRL is nicely growing with an annual growth rate of 8.23%!
• HRL has paid a dividend for at least 10 years, which is a reliable track record.
• HRL has not decreased their dividend for at least 10 years, which is a reliable track record.

ChartMill's Evaluation of Health

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:HRL scores a 7 out of 10:

• An Altman-Z score of 3.98 indicates that HRL is not in any danger for bankruptcy at the moment.
• HRL has a Altman-Z score of 3.98. This is in the better half of the industry: HRL outperforms 79.78% of its industry peers.
• The Debt to FCF ratio of HRL is 3.17, which is a good value as it means it would take HRL, 3.17 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of HRL (3.17) is better than 75.28% of its industry peers.
• A Debt/Equity ratio of 0.36 indicates that HRL is not too dependend on debt financing.
• HRL has a Current Ratio of 2.29. This indicates that HRL is financially healthy and has no problem in meeting its short term obligations.
• Looking at the Current ratio, with a value of 2.29, HRL is in the better half of the industry, outperforming 75.28% of the companies in the same industry.
• Looking at the Quick ratio, with a value of 1.03, HRL is in the better half of the industry, outperforming 60.67% of the companies in the same industry.

What does the Profitability looks like for 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:

• The Return On Assets of HRL (5.95%) is better than 68.54% of its industry peers.
• HRL's Return On Equity of 9.92% is fine compared to the rest of the industry. HRL outperforms 62.92% of its industry peers.
• The Return On Invested Capital of HRL (6.84%) is better than 68.54% of its industry peers.
• The Profit Margin of HRL (6.52%) is better than 74.16% of its industry peers.
• HRL has a better Operating Margin (8.61%) than 73.03% of its industry peers.

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

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

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.