Why NYSE:ROK qualifies as a good dividend investing stock.

Our stock screening tool has identified ROCKWELL AUTOMATION INC (NYSE:ROK) as a strong dividend contender with robust fundamentals. NYSE:ROK exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve into each aspect below.

Understanding NYSE:ROK's Dividend

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:ROK has been assigned a 7 for dividend:

• Compared to an average industry Dividend Yield of 2.43, ROK pays a better dividend. On top of this ROK pays more dividend than 94.57% of the companies listed in the same industry.
• ROK has paid a dividend for at least 10 years, which is 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 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:ROK, the assigned 5 for health provides valuable insights:

• ROK has an Altman-Z score of 4.81. This indicates that ROK is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 4.81, ROK belongs to the best of the industry, outperforming 82.61% 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.
• Looking at the Debt to FCF ratio, with a value of 3.50, ROK is in the better half of the industry, outperforming 76.09% of the companies in the same industry.

Evaluating Profitability: NYSE:ROK

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:ROK, the assigned 9 is a significant indicator of profitability:

• ROK has a better Return On Assets (10.39%) than 91.30% of its industry peers.
• ROK's Return On Equity of 33.31% is amongst the best of the industry. ROK outperforms 96.74% of its industry peers.
• With an excellent Return On Invested Capital value of 15.23%, ROK belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
• Measured over the past 3 years, the Average Return On Invested Capital for ROK is above the industry average of 11.05%.
• The last Return On Invested Capital (15.23%) for ROK is above the 3 year average (14.22%), which is a sign of increasing profitability.
• ROK has a Profit Margin of 13.15%. This is amongst the best in the industry. ROK outperforms 91.30% of its industry peers.
• In the last couple of years the Profit Margin of ROK has grown nicely.
• With an excellent Operating Margin value of 17.34%, ROK belongs to the best of the industry, outperforming 92.39% of the companies in the same industry.
• ROK has a Gross Margin of 40.08%. This is amongst the best in the industry. ROK outperforms 91.30% of its industry peers.

More Best Dividend stocks can be found in our Best Dividend screener.

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

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.