Balancing Dividends and Fundamentals: The Case of ALTRIA GROUP INC (NYSE:MO).

Unearth the potential of ALTRIA GROUP INC (NYSE:MO) as a dividend stock recommended by our stock screening tool. MO maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

ChartMill's Evaluation of Dividend

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. MO has been awarded a 7 for its dividend quality:

• With a Yearly Dividend Yield of 7.02%, MO is a good candidate for dividend investing.
• MO's Dividend Yield is rather good when compared to the industry average which is at 4.20. MO pays more dividend than 87.50% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.52, MO pays a better dividend.
• 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 Assessment of MO

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of MO, the assigned 5 reflects its health status:

• An Altman-Z score of 4.63 indicates that MO is not in any danger for bankruptcy at the moment.
• MO's Altman-Z score of 4.63 is amongst the best of the industry. MO outperforms 100.00% of its industry peers.
• MO has a debt to FCF ratio of 2.89. This is a good value and a sign of high solvency as MO would need 2.89 years to pay back of all of its debts.
• The Debt to FCF ratio of MO (2.89) is better than 100.00% of its industry peers.

Profitability Insights: MO

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For MO, the assigned 9 is a significant indicator of profitability:

• With an excellent Return On Assets value of 31.94%, MO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
• MO has a better Return On Invested Capital (34.78%) than 100.00% of its industry peers.
• MO had an Average Return On Invested Capital over the past 3 years of 34.24%. This is significantly above the industry average of 16.98%.
• The 3 year average ROIC (34.24%) for MO is below the current ROIC(34.78%), indicating increased profibility in the last year.
• MO has a Profit Margin of 46.78%. 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.
• With an excellent Operating Margin value of 48.73%, 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.
• MO has a better Gross Margin (59.71%) than 75.00% 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.