Is NYSE:RHI suited for dividend investing?

Discover ROBERT HALF INC (NYSE:RHI)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. NYSE:RHI showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.

How We Gauge Dividend for NYSE:RHI

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:RHI scores a 8 out of 10:

• RHI's Dividend Yield is rather good when compared to the industry average which is at 2.06. RHI pays more dividend than 95.12% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.37, RHI pays a bit more dividend than the S&P500 average.
• On average, the dividend of RHI grows each year by 11.53%, which is quite nice.
• RHI has paid a dividend for at least 10 years, which is a reliable track record.
• RHI has not decreased their dividend for at least 10 years, which is a reliable track record.
• The dividend of RHI is growing, but earnings are growing more, so the dividend growth is sustainable.

A Closer Look at Health for NYSE:RHI

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:RHI has achieved a 9 out of 10:

• An Altman-Z score of 5.99 indicates that RHI is not in any danger for bankruptcy at the moment.
• The Altman-Z score of RHI (5.99) is better than 87.80% 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.
• The Current ratio of RHI (1.85) is better than 71.95% of its industry peers.
• With a decent Quick ratio value of 1.85, RHI is doing good in the industry, outperforming 71.95% of the companies in the same industry.

Profitability Assessment of NYSE:RHI

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:RHI, the assigned 7 is noteworthy for profitability:

• RHI has a Return On Assets of 12.21%. This is amongst the best in the industry. RHI outperforms 87.80% of its industry peers.
• With a decent Return On Equity value of 23.22%, RHI is doing good in the industry, outperforming 79.27% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 15.59%, RHI belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
• RHI had an Average Return On Invested Capital over the past 3 years of 30.99%. This is significantly above the industry average of 12.46%.
• The 3 year average ROIC (30.99%) for RHI is well above the current ROIC(15.59%). The reason for the recent decline needs to be investigated.
• RHI's Profit Margin of 5.74% is fine compared to the rest of the industry. RHI outperforms 73.17% of its industry peers.

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Check the latest full fundamental report of RHI 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.