Is NYSE:RHI suited for dividend investing?

Last update: Apr 10, 2024

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

Assessing Dividend Metrics for NYSE:RHI

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NYSE:RHI has been assigned a 7 for dividend:

Compared to an average industry Dividend Yield of 2.01, RHI pays a better dividend. On top of this RHI pays more dividend than 93.83% of the companies listed in the same industry.
On average, the dividend of RHI grows each year by 11.53%, which is quite nice.
RHI has been paying a dividend for at least 10 years, so it has a reliable track record.
RHI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
The dividend of RHI is growing, but earnings are growing more, so the dividend growth is sustainable.

What does the Health looks like for NYSE:RHI

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:RHI, the assigned 9 for health provides valuable insights:

An Altman-Z score of 6.55 indicates that RHI is not in any danger for bankruptcy at the moment.
RHI's Altman-Z score of 6.55 is amongst the best of the industry. RHI outperforms 88.89% of its industry peers.
There is no outstanding debt for RHI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
RHI has a better Current ratio (1.86) than 77.78% of its industry peers.
RHI's Quick ratio of 1.86 is fine compared to the rest of the industry. RHI outperforms 79.01% of its industry peers.

Profitability Analysis for NYSE:RHI

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:RHI, the assigned 7 is a significant indicator of profitability:

RHI has a Return On Assets of 13.66%. This is amongst the best in the industry. RHI outperforms 90.12% of its industry peers.
With an excellent Return On Equity value of 25.89%, RHI belongs to the best of the industry, outperforming 81.48% of the companies in the same industry.
With an excellent Return On Invested Capital value of 18.92%, RHI belongs to the best of the industry, outperforming 83.95% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for RHI is significantly above the industry average of 12.33%.
The 3 year average ROIC (30.99%) for RHI is well above the current ROIC(18.92%). The reason for the recent decline needs to be investigated.
With a decent Profit Margin value of 6.43%, RHI is doing good in the industry, outperforming 77.78% of the companies in the same industry.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

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

Disclaimer

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.