Is NYSE:SON suited for dividend investing?

Our stock screener has singled out SONOCO PRODUCTS CO (NYSE:SON) as a promising choice for dividend investors. NYSE:SON not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

Exploring NYSE:SON's Dividend

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NYSE:SON has received a 8 out of 10:

• SON has a Yearly Dividend Yield of 4.19%, which is a nice return.
• Compared to an average industry Dividend Yield of 3.07, SON pays a better dividend. On top of this SON pays more dividend than 86.36% of the companies listed in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.33, SON pays a better dividend.
• SON has been paying a dividend for at least 10 years, so it has a reliable track record.
• SON has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.

Evaluating Health: NYSE:SON

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:SON has earned a 5 out of 10:

• With a decent Altman-Z score value of 2.48, SON is doing good in the industry, outperforming 77.27% of the companies in the same industry.
• SON has a better Debt to FCF ratio (5.27) than 81.82% of its industry peers.
• With a decent Debt to Equity ratio value of 1.09, SON is doing good in the industry, outperforming 63.64% of the companies in the same industry.

A Closer Look at Profitability for NYSE:SON

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:

• The Return On Assets of SON (5.44%) is better than 77.27% of its industry peers.
• SON has a better Return On Equity (16.19%) than 63.64% of its industry peers.
• The Return On Invested Capital of SON (9.28%) is better than 72.73% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for SON is above the industry average of 7.76%.
• SON has a better Profit Margin (5.86%) than 72.73% of its industry peers.
• SON's Profit Margin has improved in the last couple of years.
• With a decent Operating Margin value of 10.06%, SON is doing good in the industry, outperforming 68.18% of the companies in the same industry.
• In the last couple of years the Operating Margin of SON has grown nicely.
• SON's Gross Margin has improved in the last couple of years.

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

For an up to date full fundamental analysis you can check the fundamental report of SON

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.