Why NYSE:INGR is a Top Pick for Dividend Investors.

Our stock screener has singled out INGREDION INC (NYSE:INGR) as a promising choice for dividend investors. NYSE:INGR not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

What does the Dividend looks like for NYSE:INGR

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NYSE:INGR has been awarded a 7 for its dividend quality:

• INGR's Dividend Yield is a higher than the industry average which is at 3.82.
• INGR has paid a dividend for at least 10 years, which is a reliable track record.
• INGR has not decreased their dividend for at least 10 years, which is a reliable track record.
• INGR pays out 30.31% of its income as dividend. This is a sustainable payout ratio.
• INGR's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Exploring NYSE:INGR's Health

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:INGR was assigned a score of 8 for health:

• INGR has an Altman-Z score of 4.16. This indicates that INGR is financially healthy and has little risk of bankruptcy at the moment.
• INGR has a Altman-Z score of 4.16. This is amongst the best in the industry. INGR outperforms 80.72% of its industry peers.
• INGR has a debt to FCF ratio of 1.59. This is a very positive value and a sign of high solvency as it would only need 1.59 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 1.59, INGR is in the better half of the industry, outperforming 79.52% of the companies in the same industry.
• A Debt/Equity ratio of 0.47 indicates that INGR is not too dependend on debt financing.
• A Current Ratio of 2.67 indicates that INGR has no problem at all paying its short term obligations.
• INGR has a Current ratio of 2.67. This is in the better half of the industry: INGR outperforms 79.52% of its industry peers.
• The Quick ratio of INGR (1.69) is better than 79.52% of its industry peers.

How do we evaluate the Profitability for NYSE:INGR?

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:INGR, the assigned 8 is noteworthy for profitability:

• INGR has a Return On Assets of 9.08%. This is amongst the best in the industry. INGR outperforms 87.95% of its industry peers.
• INGR has a Return On Equity of 17.29%. This is amongst the best in the industry. INGR outperforms 81.93% of its industry peers.
• With an excellent Return On Invested Capital value of 11.54%, INGR belongs to the best of the industry, outperforming 85.54% of the companies in the same industry.
• The 3 year average ROIC (10.10%) for INGR is below the current ROIC(11.54%), indicating increased profibility in the last year.
• INGR has a Profit Margin of 9.05%. This is amongst the best in the industry. INGR outperforms 81.93% of its industry peers.
• In the last couple of years the Profit Margin of INGR has grown nicely.
• INGR has a Operating Margin of 12.74%. This is in the better half of the industry: INGR outperforms 79.52% of its industry peers.

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

Check the latest full fundamental report of INGR 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.