Is NYSE:HRL suited 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.

Assessing Dividend Metrics 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 7 out of 10:

• Compared to an average industry Dividend Yield of 3.84, HRL pays a better dividend. On top of this HRL pays more dividend than 81.40% of the companies listed in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.34, HRL pays a better dividend.
• The dividend of HRL is nicely growing with an annual growth rate of 6.53%!
• 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.

Assessing Health Metrics for NYSE:HRL

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:HRL has achieved a 6 out of 10:

• An Altman-Z score of 3.92 indicates that HRL is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 3.92, HRL is in the better half of the industry, outperforming 79.07% of the companies in the same industry.
• 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.
• HRL's Debt to FCF ratio of 2.83 is fine compared to the rest of the industry. HRL outperforms 70.93% 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 Current Ratio of 2.32. This indicates that HRL is financially healthy and has no problem in meeting its short term obligations.
• The Current ratio of HRL (2.32) is better than 69.77% of its industry peers.
• Looking at the Quick ratio, with a value of 1.19, HRL is in the better half of the industry, outperforming 68.60% of the companies in the same industry.

Analyzing Profitability Metrics

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 5.99%, HRL is in the better half of the industry, outperforming 69.77% of the companies in the same industry.
• HRL has a Return On Equity of 10.07%. This is in the better half of the industry: HRL outperforms 63.95% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 6.59%, HRL is in the better half of the industry, outperforming 65.12% of the companies in the same industry.
• The Profit Margin of HRL (6.75%) is better than 77.91% of its industry peers.
• HRL has a Operating Margin of 8.53%. This is in the better half of the industry: HRL outperforms 69.77% 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.

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.