Why NYSE:KT provides a good dividend, while having solid fundamentals.

Last update: Jul 24, 2024

KT CORP-SP ADR (NYSE:KT) was identified as a stock worth exploring by dividend investors by our stock screener. NYSE:KT scores well on profitability, solvency and liquidity. At the same time it seems to pay a decent dividend. We'll explore this a bit deeper below.

A Closer Look at Dividend for NYSE:KT

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:KT has been awarded a 7 for its dividend quality:

With a Yearly Dividend Yield of 6.66%, KT is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.04, KT pays a better dividend. On top of this KT pays more dividend than 85.29% of the companies listed in the same industry.
KT's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
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.

Evaluating Health: NYSE:KT

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:KT has received a 5 out of 10:

KT's Altman-Z score of 1.46 is amongst the best of the industry. KT outperforms 82.35% of its industry peers.
KT's Debt to FCF ratio of 5.45 is amongst the best of the industry. KT outperforms 85.29% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that KT is not too dependend on debt financing.
The Debt to Equity ratio of KT (0.46) is better than 76.47% of its industry peers.

Analyzing Profitability Metrics

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:KT has earned a 7 out of 10:

The Return On Assets of KT (2.55%) is better than 67.65% of its industry peers.
The Return On Invested Capital of KT (4.25%) is better than 61.76% of its industry peers.
The 3 year average ROIC (4.21%) for KT is below the current ROIC(4.25%), indicating increased profibility in the last year.
With a decent Profit Margin value of 4.09%, KT is doing good in the industry, outperforming 61.76% of the companies in the same industry.
In the last couple of years the Profit Margin of KT has grown nicely.
KT's Operating Margin has improved in the last couple of years.
KT has a better Gross Margin (64.63%) than 76.47% of its industry peers.
In the last couple of years the Gross Margin of KT has grown nicely.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

Our latest full fundamental report of KT contains the most current fundamental analsysis.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.