Why NYSE:MO is a Top Pick for Dividend Investors.

Last update: May 29, 2024

Our stock screener has singled out ALTRIA GROUP INC (NYSE:MO) as a promising choice for dividend investors. NYSE:MO not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

Assessing Dividend Metrics for NYSE:MO

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:MO was assigned a score of 7 for dividend:

With a Yearly Dividend Yield of 8.59%, MO is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.61, 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 2.37, 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.

A Closer Look at Health for NYSE:MO

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:MO, the assigned 5 reflects its health status:

MO has an Altman-Z score of 3.88. This indicates that MO is financially healthy and has little risk of bankruptcy at the moment.
MO's Altman-Z score of 3.88 is fine compared to the rest of the industry. MO outperforms 80.00% of its industry peers.
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.
MO's Debt to FCF ratio of 2.78 is amongst the best of the industry. MO outperforms 90.00% of its industry peers.

A Closer Look at Profitability for NYSE:MO

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:

The Return On Assets of MO (23.17%) is better than 100.00% of its industry peers.
The Return On Invested Capital of MO (35.07%) is better than 90.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MO is significantly above the industry average of 21.37%.
The last Return On Invested Capital (35.07%) for MO is above the 3 year average (31.67%), which is a sign of increasing profitability.
The Profit Margin of MO (34.73%) is better than 100.00% of its industry peers.
In the last couple of years the Profit Margin of MO has grown nicely.
MO has a Operating Margin of 48.29%. This is amongst the best in the industry. MO outperforms 100.00% of its industry peers.
MO's Operating Margin has improved in the last couple of years.
MO has a Gross Margin of 58.25%. 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.

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

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.