Is NYSE:MO suited for dividend investing?

Last update: Mar 26, 2024

Our stock screener has spotted ALTRIA GROUP INC (NYSE:MO) as a good dividend stock with solid fundamentals. NYSE:MO shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

Dividend Analysis 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 7 for its dividend quality:

MO has a Yearly Dividend Yield of 8.72%, which is a nice return.
Compared to an average industry Dividend Yield of 5.59, 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 2.34, MO pays a better dividend.
MO has paid a dividend for at least 10 years, which is a reliable track record.
MO has not decreased their dividend for at least 10 years, which is a reliable track record.

Unpacking NYSE:MO's Health Rating

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:MO was assigned a score of 5 for health:

MO has an Altman-Z score of 3.69. This indicates that MO is financially healthy and has little risk of bankruptcy at the moment.
MO has a Altman-Z score of 3.69. This is amongst the best in the industry. MO outperforms 90.00% of its industry peers.
MO has a debt to FCF ratio of 2.89. This is a good value and a sign of high solvency as MO would need 2.89 years to pay back of all of its debts.
The Debt to FCF ratio of MO (2.89) is better than 100.00% of its industry peers.

Looking at the Profitability

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:

MO's Return On Assets of 21.03% is amongst the best of the industry. MO outperforms 90.00% of its industry peers.
MO's Return On Invested Capital of 33.36% is amongst the best of the industry. MO outperforms 90.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MO is significantly above the industry average of 21.15%.
The 3 year average ROIC (31.67%) for MO is below the current ROIC(33.36%), indicating increased profibility in the last year.
With an excellent Profit Margin value of 33.14%, MO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
MO's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 48.72%, 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 better Gross Margin (58.14%) than 80.00% of its industry peers.
MO's Gross Margin has improved in the last couple of years.

More Best Dividend stocks can be found in our Best Dividend screener.

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

Keep in mind

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.