Is NYSE:HRL a Good Fit for Dividend Investing?

Consider HORMEL FOODS CORP (NYSE:HRL) as a top pick for dividend investors, identified by our stock screening tool. NYSE:HRL shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.

How We Gauge Dividend for NYSE:HRL

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 8 out of 10:

• Compared to an average industry Dividend Yield of 3.83, 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 2.36, HRL pays a better dividend.
• On average, the dividend of HRL grows each year by 6.53%, which is quite nice.
• 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.
• The dividend of HRL is growing, but earnings are growing more, so the dividend growth is sustainable.

How We Gauge Health for 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:

• HRL has an Altman-Z score of 4.02. This indicates that HRL is financially healthy and has little risk of bankruptcy at the moment.
• HRL has a better Altman-Z score (4.02) than 79.12% of its industry peers.
• The Debt to FCF ratio of HRL is 2.83, which is a good value as it means it would take HRL, 2.83 years of fcf income to pay off all of its debts.
• Looking at the Debt to FCF ratio, with a value of 2.83, HRL is in the better half of the industry, outperforming 72.53% of the companies in the same industry.
• A Debt/Equity ratio of 0.36 indicates that HRL is not too dependend on debt financing.
• HRL has a Current Ratio of 2.32. This indicates that HRL is financially healthy and has no problem in meeting its short term obligations.
• With a decent Current ratio value of 2.32, HRL is doing good in the industry, outperforming 70.33% of the companies in the same industry.
• HRL has a Quick ratio of 1.19. This is in the better half of the industry: HRL outperforms 69.23% of its industry peers.

Looking at the Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:HRL, the assigned 5 is noteworthy for profitability:

• Looking at the Return On Assets, with a value of 5.99%, HRL is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 10.07%, HRL is in the better half of the industry, outperforming 65.93% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 6.59%, HRL is in the better half of the industry, outperforming 67.03% of the companies in the same industry.
• The Profit Margin of HRL (6.75%) is better than 79.12% of its industry peers.
• With a decent Operating Margin value of 8.53%, HRL is doing good in the industry, outperforming 71.43% of the companies in the same industry.

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

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.