Analyzing NYSE:MO's Dividend Potential.

Last update: Dec 31, 2024

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.

Evaluating Dividend: 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:

MO has a Yearly Dividend Yield of 7.76%, which is a nice return.
Compared to an average industry Dividend Yield of 4.52, MO pays a better dividend. On top of this MO pays more dividend than 87.50% of the companies listed 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 been paying a dividend for at least 10 years, so it has 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 Analysis for 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 4.47. This indicates that MO is financially healthy and has little risk of bankruptcy at the moment.
MO has a Altman-Z score of 4.47. This is amongst the best in the industry. MO outperforms 87.50% of its industry peers.
MO has a debt to FCF ratio of 2.96. This is a good value and a sign of high solvency as MO would need 2.96 years to pay back of all of its debts.
The Debt to FCF ratio of MO (2.96) is better than 100.00% of its industry peers.

Profitability Examination for NYSE:MO

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:

With an excellent Return On Assets value of 30.03%, MO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of MO (33.68%) is better than 87.50% of its industry peers.
The last Return On Invested Capital (33.68%) for MO is above the 3 year average (31.67%), which is a sign of increasing profitability.
The Profit Margin of MO (42.72%) 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 better Operating Margin (48.16%) than 87.50% of its industry peers.
MO's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 59.12%, MO is doing good in the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Gross Margin of MO has grown nicely.

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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.