Analyzing NYSE:SON's Dividend Potential.

SONOCO PRODUCTS CO (NYSE:SON) has caught the attention of dividend investors as a stock worth considering. NYSE:SON excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

Understanding NYSE:SON'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:SON has been assigned a 7 for dividend:

• SON's Dividend Yield is rather good when compared to the industry average which is at 2.95. SON pays more dividend than 82.61% of the companies in the same industry.
• SON's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
• SON has been paying a dividend for at least 10 years, so it has a reliable track record.
• SON has not decreased their dividend for at least 10 years, which is a reliable track record.

A Closer Look at Health for NYSE:SON

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:SON, the assigned 5 for health provides valuable insights:

• SON has a better Altman-Z score (2.47) than 78.26% of its industry peers.
• Looking at the Debt to FCF ratio, with a value of 5.27, SON belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
• With a decent Debt to Equity ratio value of 1.09, SON is doing good in the industry, outperforming 60.87% of the companies in the same industry.

Exploring NYSE:SON's Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:SON has achieved a 7:

• Looking at the Return On Assets, with a value of 5.44%, SON is in the better half of the industry, outperforming 78.26% of the companies in the same industry.
• SON has a Return On Equity of 16.19%. This is in the better half of the industry: SON outperforms 65.22% of its industry peers.
• SON has a Return On Invested Capital of 9.28%. This is in the better half of the industry: SON outperforms 73.91% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for SON is above the industry average of 7.56%.
• SON has a better Profit Margin (5.86%) than 73.91% of its industry peers.
• SON's Profit Margin has improved in the last couple of years.
• SON's Operating Margin of 10.06% is fine compared to the rest of the industry. SON outperforms 69.57% of its industry peers.
• In the last couple of years the Operating Margin of SON has grown nicely.
• SON's Gross Margin of 20.91% is fine compared to the rest of the industry. SON outperforms 60.87% of its industry peers.
• SON's Gross Margin has improved in the last couple of years.

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Our latest full fundamental report of SON 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.