Exploring NYSE:HRL's dividend characteristics.

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.

Unpacking NYSE:HRL's Dividend Rating

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 8 out of 10:

• HRL has a Yearly Dividend Yield of 4.02%, which is a nice return.
• Compared to an average industry Dividend Yield of 3.93, HRL pays a better dividend. On top of this HRL pays more dividend than 83.33% 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 2.27.
• The dividend of HRL is nicely growing with an annual growth rate of 6.53%!
• 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.

What does the Health looks like for NYSE:HRL

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:HRL has earned a 6 out of 10:

• HRL has an Altman-Z score of 3.87. This indicates that HRL is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of HRL (3.87) is better than 78.57% of its industry peers.
• HRL has a debt to FCF ratio of 2.83. This is a good value and a sign of high solvency as HRL would need 2.83 years to pay back of all of its debts.
• HRL's Debt to FCF ratio of 2.83 is fine compared to the rest of the industry. HRL outperforms 72.62% 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.
• HRL has a better Current ratio (2.32) than 67.86% of its industry peers.
• HRL has a better Quick ratio (1.19) than 64.29% of its industry peers.

Profitability Insights: 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:

• Looking at the Return On Assets, with a value of 5.99%, HRL is in the better half of the industry, outperforming 67.86% 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 61.90% of its industry peers.
• HRL has a better Return On Invested Capital (6.59%) than 63.10% of its industry peers.
• Looking at the Profit Margin, with a value of 6.75%, HRL is in the better half of the industry, outperforming 77.38% of the companies in the same industry.
• HRL has a better Operating Margin (8.53%) than 67.86% of its industry peers.

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

Check the latest full fundamental report of HRL for a complete fundamental analysis.

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.