Analyzing NYSE:MO's Dividend Potential.

Take a closer look at ALTRIA GROUP INC (NYSE:MO), a stock of interest to dividend investors uncovered by our stock screener. NYSE:MO excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

Deciphering NYSE:MO's Dividend Rating

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:MO earns a 7 out of 10:

• MO has a Yearly Dividend Yield of 8.91%, which is a nice return.
• MO's Dividend Yield is rather good when compared to the industry average which is at 5.67. MO pays more dividend than 90.00% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.40, 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.

Health Assessment of 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:

• An Altman-Z score of 3.83 indicates that MO is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 3.83, MO is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
• MO has a debt to FCF ratio of 2.78. This is a good value and a sign of high solvency as MO would need 2.78 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 2.78, MO belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.

What does the Profitability looks like for NYSE:MO

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:MO scores a 8 out of 10:

• The Return On Assets of MO (23.17%) is better than 100.00% of its industry peers.
• MO's Return On Invested Capital of 35.07% 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 21.27%.
• The 3 year average ROIC (31.67%) for MO is below the current ROIC(35.07%), indicating increased profibility in the last year.
• MO has a Profit Margin of 34.73%. This is amongst the best in the industry. MO outperforms 100.00% of its industry peers.
• In the last couple of years the Profit Margin of MO has grown nicely.
• MO has a better Operating Margin (48.29%) 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 (58.25%) 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.

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.