Exploring NYSE:MO's dividend characteristics.

Last update: Oct 13, 2023

ALTRIA GROUP INC (NYSE:MO) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NYSE:MO demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

Deciphering NYSE:MO's Dividend Rating

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NYSE:MO has been assigned a 7 for dividend:

With a Yearly Dividend Yield of 9.34%, MO is a good candidate for dividend investing.
MO's Dividend Yield is rather good when compared to the industry average which is at 6.63. MO pays more dividend than 100.00% of the companies in the same industry.
MO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.76.
The dividend of MO is nicely growing with an annual growth rate of 7.90%!
MO has paid a dividend for at least 10 years, which is a reliable track record.
MO has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.

A Closer Look at Health for NYSE:MO

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:MO scores a 5 out of 10:

MO has an Altman-Z score of 3.75. This indicates that MO is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.75, MO belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
The Debt to FCF ratio of MO is 3.17, which is a good value as it means it would take MO, 3.17 years of fcf income to pay off all of its debts.
MO's Debt to FCF ratio of 3.17 is amongst the best of the industry. MO outperforms 100.00% of its industry peers.

Analyzing Profitability Metrics

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:MO was assigned a score of 8 for profitability:

MO has a better Return On Assets (18.31%) than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 31.55%, MO belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MO is significantly above the industry average of 19.72%.
The 3 year average ROIC (26.57%) for MO is below the current ROIC(31.55%), indicating increased profibility in the last year.
MO has a Profit Margin of 27.34%. This is amongst the best in the industry. MO outperforms 90.00% of its industry peers.
MO has a better Operating Margin (48.82%) than 100.00% of its industry peers.
MO's Operating Margin has improved in the last couple of years.
MO's Gross Margin of 57.40% is fine compared to the rest of the industry. MO outperforms 80.00% of its industry peers.
MO's Gross Margin has improved in the last couple of years.

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

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

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.