Is NYSE:ROK a Good Fit for Dividend Investing?

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.

Analyzing Dividend Metrics

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:

• ROK's Dividend Yield is rather good when compared to the industry average which is at 2.18. ROK pays more dividend than 95.56% of the companies 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.

Assessing Health Metrics for NYSE:ROK

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:ROK has achieved a 4 out of 10:

• An Altman-Z score of 4.80 indicates that ROK is not in any danger for bankruptcy at the moment.
• The Altman-Z score of ROK (4.80) is better than 83.33% of its industry peers.
• ROK has a debt to FCF ratio of 3.52. This is a good value and a sign of high solvency as ROK would need 3.52 years to pay back of all of its debts.
• ROK's Debt to FCF ratio of 3.52 is fine compared to the rest of the industry. ROK outperforms 73.33% of its industry peers.

Assessing Profitability for NYSE:ROK

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:ROK scores a 8 out of 10:

• ROK has a Return On Assets of 9.04%. This is amongst the best in the industry. ROK outperforms 91.11% of its industry peers.
• ROK has a better Return On Equity (30.42%) than 95.56% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 14.43%, ROK belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
• ROK had an Average Return On Invested Capital over the past 3 years of 14.22%. This is above the industry average of 10.88%.
• The last Return On Invested Capital (14.43%) for ROK is above the 3 year average (14.22%), which is a sign of increasing profitability.
• ROK's Profit Margin of 11.51% is amongst the best of the industry. ROK outperforms 90.00% 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 92.22% of its industry peers.
• With an excellent Gross Margin value of 39.56%, ROK belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.

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Check the latest full fundamental report of ROK for a complete fundamental analysis.

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.