Is NYSE:KT a Good Fit for Dividend Investing?

KT CORP-SP ADR (NYSE:KT) has caught the attention of dividend investors as a stock worth considering. NYSE:KT excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

How We Gauge Dividend for NYSE:KT

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:KT scores a 8 out of 10:

• With a Yearly Dividend Yield of 5.39%, KT is a good candidate for dividend investing.
• KT's Dividend Yield is a higher than the industry average which is at 4.77.
• Compared to an average S&P500 Dividend Yield of 2.36, KT pays a better dividend.
• The dividend of KT is nicely growing with an annual growth rate of 11.46%!
• KT has paid a dividend for at least 10 years, which is a reliable track record.
• KT has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
• KT's earnings are growing more than its dividend. This makes the dividend growth sustainable.

How do we evaluate the Health for NYSE:KT?

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:KT has achieved a 5 out of 10:

• Looking at the Altman-Z score, with a value of 1.46, KT belongs to the top of the industry, outperforming 86.11% of the companies in the same industry.
• KT has a better Debt to FCF ratio (8.57) than 69.44% of its industry peers.
• Looking at the Debt to Equity ratio, with a value of 0.50, KT is in the better half of the industry, outperforming 77.78% of the companies in the same industry.

Profitability Assessment of NYSE:KT

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:KT was assigned a score of 7 for profitability:

• KT has a Return On Assets of 2.36%. This is in the better half of the industry: KT outperforms 66.67% of its industry peers.
• With a decent Return On Equity value of 6.02%, KT is doing good in the industry, outperforming 66.67% of the companies in the same industry.
• KT has a Profit Margin of 3.82%. This is in the better half of the industry: KT outperforms 66.67% of its industry peers.
• KT's Profit Margin has improved in the last couple of years.
• In the last couple of years the Operating Margin of KT has grown nicely.
• KT has a Gross Margin of 64.38%. This is in the better half of the industry: KT outperforms 77.78% of its industry peers.
• KT's Gross Margin has improved in the last couple of years.

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For an up to date full fundamental analysis you can check the fundamental report of KT

Disclaimer

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.