Is NYSE:MAS suited for dividend investing?

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

Looking at the Dividend

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NYSE:MAS earns a 7 out of 10:

• MAS's Dividend Yield is rather good when compared to the industry average which is at 3.19. MAS pays more dividend than 93.02% of the companies in the same industry.
• The dividend of MAS is nicely growing with an annual growth rate of 21.91%!
• MAS has been paying a dividend for at least 10 years, so it has a reliable track record.
• MAS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• MAS pays out 30.81% of its income as dividend. This is a sustainable payout ratio.

A Closer Look at Health for NYSE:MAS

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:MAS, the assigned 5 for health provides valuable insights:

• An Altman-Z score of 3.73 indicates that MAS is not in any danger for bankruptcy at the moment.
• MAS has a debt to FCF ratio of 3.07. This is a good value and a sign of high solvency as MAS would need 3.07 years to pay back of all of its debts.
• MAS has a Debt to FCF ratio of 3.07. This is in the better half of the industry: MAS outperforms 60.47% of its industry peers.

Looking at the Profitability

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:MAS has earned a 7 out of 10:

• MAS's Return On Assets of 15.47% is amongst the best of the industry. MAS outperforms 88.37% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 25.71%, MAS belongs to the top of the industry, outperforming 95.35% of the companies in the same industry.
• MAS had an Average Return On Invested Capital over the past 3 years of 27.54%. This is significantly above the industry average of 13.14%.
• Looking at the Profit Margin, with a value of 10.38%, MAS is in the better half of the industry, outperforming 67.44% of the companies in the same industry.
• In the last couple of years the Profit Margin of MAS has grown nicely.
• With a decent Operating Margin value of 16.38%, MAS is doing good in the industry, outperforming 72.09% of the companies in the same industry.
• Looking at the Gross Margin, with a value of 34.05%, MAS is in the better half of the industry, outperforming 62.79% of the companies in the same industry.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

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

Keep in mind

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.