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

Our stock screener has spotted ALTRIA GROUP INC (NYSE:MO) as a good dividend stock with solid fundamentals. NYSE:MO shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

Understanding NYSE:MO's 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:

• MO has a Yearly Dividend Yield of 7.97%, which is a nice return.
• MO's Dividend Yield is rather good when compared to the industry average which is at 4.64. MO pays more dividend than 87.50% of the companies in the same industry.
• MO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.28.
• 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.

Analyzing Health Metrics

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 4.47 indicates that MO is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 4.47, MO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
• The Debt to FCF ratio of MO is 2.96, which is a good value as it means it would take MO, 2.96 years of fcf income to pay off all of its debts.
• MO has a better Debt to FCF ratio (2.96) than 87.50% of its industry peers.

Profitability Insights: 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:

• MO's Return On Assets of 30.03% is amongst the best of the industry. MO outperforms 100.00% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 33.68%, MO belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
• The 3 year average ROIC (31.67%) for MO is below the current ROIC(33.68%), indicating increased profibility in the last year.
• 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.
• The Operating Margin of MO (48.16%) is better than 87.50% of its industry peers.
• In the last couple of years the Operating Margin of MO has grown nicely.
• 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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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.