Why the dividend investor may take a look at NYSE:MO.

ALTRIA GROUP INC (NYSE:MO) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NYSE:MO demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

ChartMill's Evaluation of Dividend

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:MO has achieved a 7 out of 10:

• With a Yearly Dividend Yield of 8.53%, MO is a good candidate for dividend investing.
• MO's Dividend Yield is rather good when compared to the industry average which is at 5.51. MO pays more dividend than 90.00% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.38, 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.

Assessing Health for NYSE:MO

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:MO, the assigned 5 for health provides valuable insights:

• An Altman-Z score of 3.92 indicates that MO is not in any danger for bankruptcy at the moment.
• The Altman-Z score of MO (3.92) is better than 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 has a Debt to FCF ratio of 2.78. This is amongst the best in the industry. MO outperforms 90.00% of its industry peers.

Looking at the Profitability

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 23.17%. This is amongst the best in the industry. MO outperforms 100.00% of its industry peers.
• MO has a Return On Invested Capital of 35.07%. This is amongst the best in 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 21.37%.
• 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 better Profit Margin (34.73%) than 100.00% of its industry peers.
• In the last couple of years the Profit Margin of MO has grown nicely.
• With an excellent Operating Margin value of 48.29%, MO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
• In the last couple of years the Operating Margin of MO has grown nicely.
• Looking at the Gross Margin, with a value of 58.25%, MO is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
• 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

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.