Why NYSE:MSM is a Top Pick for Dividend Investors.

Our stock screener has singled out MSC INDUSTRIAL DIRECT CO-A (NYSE:MSM) as a promising choice for dividend investors. NYSE:MSM not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

ChartMill's Evaluation of Dividend

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NYSE:MSM has received a 7 out of 10:

• With a Yearly Dividend Yield of 4.15%, MSM is a good candidate for dividend investing.
• MSM's Dividend Yield is rather good when compared to the industry average which is at 1.88. MSM pays more dividend than 97.92% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.30, MSM pays a better dividend.
• MSM has been paying a dividend for at least 10 years, so it has a reliable track record.
• The dividend of MSM is growing, but earnings are growing more, so the dividend growth is sustainable.

Assessing Health for NYSE:MSM

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:MSM scores a 5 out of 10:

• MSM has an Altman-Z score of 5.06. This indicates that MSM is financially healthy and has little risk of bankruptcy at the moment.
• MSM has a Altman-Z score of 5.06. This is in the better half of the industry: MSM outperforms 79.17% of its industry peers.
• MSM has a debt to FCF ratio of 1.57. This is a very positive value and a sign of high solvency as it would only need 1.57 years to pay back of all of its debts.
• MSM's Debt to FCF ratio of 1.57 is fine compared to the rest of the industry. MSM outperforms 79.17% of its industry peers.
• MSM has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
• MSM's Debt to Equity ratio of 0.21 is fine compared to the rest of the industry. MSM outperforms 68.75% of its industry peers.

Profitability Insights: NYSE:MSM

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 NYSE:MSM, the assigned 7 is a significant indicator of profitability:

• MSM has a Return On Assets of 9.54%. This is in the better half of the industry: MSM outperforms 77.08% of its industry peers.
• MSM has a Return On Equity of 17.15%. This is in the better half of the industry: MSM outperforms 60.42% of its industry peers.
• MSM's Return On Invested Capital of 15.34% is amongst the best of the industry. MSM outperforms 87.50% of its industry peers.
• MSM had an Average Return On Invested Capital over the past 3 years of 17.86%. This is significantly above the industry average of 9.86%.
• Looking at the Profit Margin, with a value of 6.21%, MSM is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
• MSM has a Operating Margin of 9.96%. This is in the better half of the industry: MSM outperforms 66.67% of its industry peers.
• MSM's Gross Margin of 41.05% is fine compared to the rest of the industry. MSM outperforms 72.92% of its industry peers.

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 MSM

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.