Is NYSE:ROK a Good Fit for Dividend Investing?

Last update: May 30, 2024

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

How We Gauge Dividend for NYSE:ROK

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:ROK has achieved a 7 out of 10:

ROK's Dividend Yield is rather good when compared to the industry average which is at 2.23. ROK pays more dividend than 94.12% of the companies in the same industry.
ROK has been paying a dividend for at least 10 years, so it has a reliable track record.
ROK has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
ROK's earnings are growing more than its dividend. This makes the dividend growth sustainable.

A Closer Look at Health for NYSE:ROK

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:ROK was assigned a score of 5 for health:

An Altman-Z score of 4.68 indicates that ROK is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.68, ROK is doing good in the industry, outperforming 80.00% of the companies in the same industry.
The Debt to FCF ratio of ROK is 3.50, which is a good value as it means it would take ROK, 3.50 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ROK (3.50) is better than 76.47% of its industry peers.

Exploring NYSE:ROK's Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:ROK was assigned a score of 9 for profitability:

ROK has a better Return On Assets (10.39%) than 90.59% of its industry peers.
The Return On Equity of ROK (33.31%) is better than 96.47% of its industry peers.
The Return On Invested Capital of ROK (15.23%) is better than 94.12% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ROK is above the industry average of 11.19%.
The 3 year average ROIC (14.22%) for ROK is below the current ROIC(15.23%), indicating increased profibility in the last year.
Looking at the Profit Margin, with a value of 13.15%, ROK belongs to the top of the industry, outperforming 90.59% of the companies in the same industry.
In the last couple of years the Profit Margin of ROK has grown nicely.
ROK has a Operating Margin of 17.34%. This is amongst the best in the industry. ROK outperforms 91.76% of its industry peers.
Looking at the Gross Margin, with a value of 40.08%, ROK belongs to the top of the industry, outperforming 89.41% of the companies in the same industry.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

Our latest full fundamental report of ROK contains the most current fundamental analsysis.

Keep in mind

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.