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

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.

Looking at the Dividend

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:RHI was assigned a score of 7 for dividend:

• RHI's Dividend Yield is rather good when compared to the industry average which is at 1.81. RHI pays more dividend than 94.81% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.23, RHI pays a bit more dividend than the S&P500 average.
• The dividend of RHI is nicely growing with an annual growth rate of 11.53%!
• 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.
• RHI's earnings are growing more than its dividend. This makes the dividend growth sustainable.

What does the Health looks like for NYSE:RHI

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:RHI has received a 9 out of 10:

• RHI has an Altman-Z score of 5.70. This indicates that RHI is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 5.70, RHI belongs to the best of the industry, outperforming 83.12% of the companies in the same industry.
• RHI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
• Looking at the Current ratio, with a value of 1.72, RHI is in the better half of the industry, outperforming 63.64% of the companies in the same industry.
• RHI has a better Quick ratio (1.72) than 64.94% of its industry peers.

How do we evaluate the Profitability for NYSE:RHI?

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:RHI scores a 7 out of 10:

• The Return On Assets of RHI (9.54%) is better than 80.52% of its industry peers.
• RHI has a Return On Equity of 19.31%. This is in the better half of the industry: RHI outperforms 67.53% of its industry peers.
• RHI has a Return On Invested Capital of 10.55%. This is in the better half of the industry: RHI outperforms 67.53% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for RHI is significantly above the industry average of 12.35%.
• The last Return On Invested Capital (10.55%) for RHI is well below the 3 year average (30.99%), which needs to be investigated, but indicates that RHI had better years and this may not be a problem.
• RHI has a Profit Margin of 4.84%. This is in the better half of the industry: RHI outperforms 62.34% 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.