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

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.

Evaluating Dividend: NYSE:MO

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 8.57%, which is a nice return.
• 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 2.39, 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.

Health Assessment of NYSE:MO

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 3.86 indicates that MO is not in any danger for bankruptcy at the moment.
• MO's Altman-Z score of 3.86 is fine compared to the rest of the industry. MO outperforms 80.00% of its industry peers.
• The Debt to FCF ratio of MO is 2.78, which is a good value as it means it would take MO, 2.78 years of fcf income to pay off 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.

Analyzing Profitability Metrics

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:MO has earned a 8 out of 10:

• MO has a better Return On Assets (23.17%) 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.
• MO had an Average Return On Invested Capital over the past 3 years of 31.67%. This is significantly above the industry average of 21.37%.
• 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.
• The Operating Margin of MO (48.29%) is better than 100.00% of its industry peers.
• In the last couple of years the Operating Margin of MO has grown nicely.
• The Gross Margin of MO (58.25%) is better than 80.00% of its industry peers.
• In the last couple of years the Gross Margin of MO has grown nicely.

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

Disclaimer

This article should in no way be interpreted as advice. 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.