Exploring NYSE:HRL's dividend characteristics.

Last update: Feb 4, 2025

Our stock screening tool has identified HORMEL FOODS CORP (NYSE:HRL) as a strong dividend contender with robust fundamentals. NYSE:HRL exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve into each aspect below.

How We Gauge Dividend for NYSE:HRL

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:HRL scores a 7 out of 10:

HRL's Dividend Yield is rather good when compared to the industry average which is at 3.83. HRL pays more dividend than 81.18% of the companies in the same industry.
HRL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
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.

Looking at the 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 6 out of 10:

HRL has an Altman-Z score of 3.89. This indicates that HRL is financially healthy and has little risk of bankruptcy at the moment.
HRL has a Altman-Z score of 3.89. This is in the better half of the industry: HRL outperforms 78.82% 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.
The Debt to FCF ratio of HRL (2.83) is better than 71.76% of its industry peers.
A Debt/Equity ratio of 0.36 indicates that HRL is not too dependend on debt financing.
A Current Ratio of 2.32 indicates that HRL has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.32, HRL is in the better half of the industry, outperforming 69.41% 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 67.06% of its industry peers.

Profitability Examination for NYSE:HRL

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:

The Return On Assets of HRL (5.99%) is better than 69.41% of its industry peers.
HRL has a Return On Equity of 10.07%. This is in the better half of the industry: HRL outperforms 63.53% of its industry peers.
HRL has a Return On Invested Capital of 6.59%. This is in the better half of the industry: HRL outperforms 64.71% of its industry peers.
With a decent Profit Margin value of 6.75%, HRL is doing good in the industry, outperforming 77.65% of the companies in the same industry.
With a decent Operating Margin value of 8.53%, HRL is doing good in the industry, outperforming 69.41% of the companies in the same industry.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

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.