Is NYSE:ROK suited for dividend investing?

Last update: Sep 26, 2024

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 Score

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NYSE:ROK has been awarded a 7 for its dividend quality:

Compared to an average industry Dividend Yield of 2.29, ROK pays a better dividend. On top of this ROK pays more dividend than 94.38% of the companies listed 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 their dividend for at least 10 years, which is a reliable track record.
The dividend of ROK is growing, but earnings are growing more, so the dividend growth is sustainable.

Health Assessment of NYSE:ROK

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:ROK scores a 5 out of 10:

ROK has an Altman-Z score of 4.63. This indicates that ROK is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of ROK (4.63) is better than 83.15% of its industry peers.
The Debt to FCF ratio of ROK is 3.52, which is a good value as it means it would take ROK, 3.52 years of fcf income to pay off all of its debts.
ROK has a better Debt to FCF ratio (3.52) than 73.03% of its industry peers.

Assessing Profitability for NYSE:ROK

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:ROK has earned a 9 out of 10:

ROK's Return On Assets of 9.04% is amongst the best of the industry. ROK outperforms 89.89% of its industry peers.
ROK has a better Return On Equity (30.42%) than 95.51% of its industry peers.
The Return On Invested Capital of ROK (14.43%) is better than 95.51% of its industry peers.
ROK had an Average Return On Invested Capital over the past 3 years of 14.22%. This is above the industry average of 10.93%.
The 3 year average ROIC (14.22%) for ROK is below the current ROIC(14.43%), indicating increased profibility in the last year.
ROK's Profit Margin of 11.51% is amongst the best of the industry. ROK outperforms 89.89% of its industry peers.
In the last couple of years the Profit Margin of ROK has grown nicely.
ROK has a better Operating Margin (16.34%) than 92.13% of its industry peers.
ROK has a better Gross Margin (39.56%) than 91.01% of its industry peers.

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 ROK

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.