Is NYSE:MO suited for dividend investing?

Last update: Jan 8, 2024

Consider ALTRIA GROUP INC (NYSE:MO) as a top pick for dividend investors, identified by our stock screening tool. NYSE:MO 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:MO

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:MO has achieved a 8 out of 10:

MO has a Yearly Dividend Yield of 9.44%, which is a nice return.
Compared to an average industry Dividend Yield of 5.43, MO pays a better dividend. On top of this MO pays more dividend than 90.00% of the companies listed in the same industry.
MO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.45.
On average, the dividend of MO grows each year by 7.90%, which is quite nice.
MO has been paying a dividend for at least 10 years, so it has a reliable track record.
MO has not decreased their dividend for at least 10 years, which is a reliable track record.

Looking at the Health

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:MO, the assigned 5 for health provides valuable insights:

MO has an Altman-Z score of 3.83. This indicates that MO is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.83, 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 2.96, which is a good value as it means it would take MO, 2.96 years of fcf income to pay off all of its debts.
MO's Debt to FCF ratio of 2.96 is amongst the best of the industry. MO outperforms 100.00% of its industry peers.

Profitability Insights: NYSE:MO

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:MO has achieved a 8:

Looking at the Return On Assets, with a value of 23.98%, MO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of MO (33.11%) is better than 90.00% of its industry peers.
MO had an Average Return On Invested Capital over the past 3 years of 26.57%. This is above the industry average of 21.62%.
The 3 year average ROIC (26.57%) for MO is below the current ROIC(33.11%), indicating increased profibility in the last year.
MO's Profit Margin of 35.52% is amongst the best of the industry. MO outperforms 100.00% of its industry peers.
With an excellent Operating Margin value of 49.17%, MO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
MO's Operating Margin has improved in the last couple of years.
MO has a Gross Margin of 57.97%. This is in the better half of the industry: MO outperforms 80.00% of its industry peers.
MO's Gross Margin has improved in the last couple of years.

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.