Why NYSE:MO qualifies as a good dividend investing stock.

Our stock screening tool has identified ALTRIA GROUP INC (NYSE:MO) as a strong dividend contender with robust fundamentals. NYSE:MO exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve into each aspect below.

How We Gauge Dividend for NYSE:MO

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:MO has been awarded a 8 for its dividend quality:

• With a Yearly Dividend Yield of 9.75%, MO is a good candidate for dividend investing.
• Compared to an average industry Dividend Yield of 5.69, MO pays a better dividend. On top of this MO pays more dividend than 90.00% of the companies listed in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.47, MO pays a better dividend.
• 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.

Understanding NYSE:MO's Health

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:MO has earned a 5 out of 10:

• An Altman-Z score of 3.79 indicates that MO is not in any danger for bankruptcy at the moment.
• MO has a Altman-Z score of 3.79. This is amongst the best in the industry. MO outperforms 90.00% of its industry peers.
• 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.
• With an excellent Debt to FCF ratio value of 2.96, MO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.

Assessing Profitability for NYSE:MO

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:MO, the assigned 8 is noteworthy for profitability:

• MO has a Return On Assets of 23.98%. This is amongst the best in the industry. MO outperforms 100.00% of its industry peers.
• With an excellent Return On Invested Capital value of 33.11%, MO belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
• Measured over the past 3 years, the Average Return On Invested Capital for MO is above the industry average of 21.62%.
• The last Return On Invested Capital (33.11%) for MO is above the 3 year average (26.57%), which is a sign of increasing profitability.
• Looking at the Profit Margin, with a value of 35.52%, MO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
• The Operating Margin of MO (49.17%) is better than 100.00% of its industry peers.
• In the last couple of years the Operating Margin of MO has grown nicely.
• MO has a better Gross Margin (57.97%) than 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.

Check the latest full fundamental report of MO 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.