Consider COCA-COLA CO/THE (NYSE:KO) as a top pick for dividend investors, identified by our stock screening tool. NYSE:KO shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.
Dividend Analysis for NYSE:KO
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:KO scores a 7 out of 10:
Compared to an average industry Dividend Yield of 2.44, KO pays a better dividend. On top of this KO pays more dividend than 91.18% of the companies listed in the same industry.
KO's Dividend Yield is a higher than the S&P500 average which is at 2.45.
KO has been paying a dividend for at least 10 years, so it has a reliable track record.
KO has not decreased their dividend for at least 10 years, which is a reliable track record.
The dividend of KO is growing, but earnings are growing more, so the dividend growth is sustainable.
Understanding NYSE:KO's Health Score
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:KO scores a 5 out of 10:
An Altman-Z score of 4.11 indicates that KO is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.11, KO is doing good in the industry, outperforming 64.71% of the companies in the same industry.
The Debt to FCF ratio of KO is 3.95, which is a good value as it means it would take KO, 3.95 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.95, KO is doing good in the industry, outperforming 76.47% of the companies in the same industry.
Evaluating Profitability: NYSE:KO
ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:KO was assigned a score of 8 for profitability:
With an excellent Return On Assets value of 11.04%, KO belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
Looking at the Return On Equity, with a value of 40.92%, KO belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
With a decent Return On Invested Capital value of 13.58%, KO is doing good in the industry, outperforming 70.59% of the companies in the same industry.
The last Return On Invested Capital (13.58%) for KO is above the 3 year average (11.67%), which is a sign of increasing profitability.
The Profit Margin of KO (23.92%) is better than 100.00% of its industry peers.
KO's Profit Margin has improved in the last couple of years.
KO's Operating Margin of 28.92% is amongst the best of the industry. KO outperforms 94.12% of its industry peers.
KO has a Gross Margin of 59.14%. This is amongst the best in the industry. KO outperforms 88.24% of its industry peers.
This article should in no way be interpreted as advice in any way. 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.