Why NYSE:MO provides a good dividend, while having solid fundamentals.

Consider ALTRIA GROUP INC (NYSE:MO) as a top pick for dividend investors, identified by our stock screening tool. NYSE:MO shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.

Dividend Assessment of 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 7.75%, MO is a good candidate for dividend investing.
• MO's Dividend Yield is rather good when compared to the industry average which is at 4.94. MO pays more dividend than 90.00% of the companies in the same industry.
• MO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
• 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.

Evaluating Health: NYSE:MO

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:MO has received a 5 out of 10:

• MO has an Altman-Z score of 3.97. This indicates that MO is financially healthy and has little risk of bankruptcy at the moment.
• MO's Altman-Z score of 3.97 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.
• MO has a better Debt to FCF ratio (2.78) than 90.00% of its industry peers.

How do we evaluate the Profitability for NYSE:MO?

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:

• With an excellent Return On Assets value of 23.17%, MO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
• MO's Return On Invested Capital of 35.07% is amongst the best of the industry. MO outperforms 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 21.47%.
• 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.
• 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.
• Looking at the Operating Margin, with a value of 48.29%, MO belongs to the top 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.
• MO's Gross Margin of 58.25% is fine compared to the rest of the industry. MO outperforms 80.00% of its industry peers.
• MO's Gross Margin has improved in the last couple of years.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

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

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.