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

SONOCO PRODUCTS CO (NYSE:SON) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NYSE:SON demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

Understanding NYSE:SON's Dividend

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:SON was assigned a score of 7 for dividend:

• With a Yearly Dividend Yield of 4.15%, SON is a good candidate for dividend investing.
• Compared to an average industry Dividend Yield of 2.83, SON pays a better dividend. On top of this SON pays more dividend than 86.96% of the companies listed in the same industry.
• SON's Dividend Yield is rather good when compared to the S&P500 average which is at 2.19.
• 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.

Understanding NYSE:SON's Health Score

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:SON has received a 5 out of 10:

• The Altman-Z score of SON (2.14) is better than 69.57% of its industry peers.
• SON has a Current Ratio of 2.36. This indicates that SON is financially healthy and has no problem in meeting its short term obligations.
• SON has a better Current ratio (2.36) than 91.30% of its industry peers.
• SON's Quick ratio of 1.91 is amongst the best of the industry. SON outperforms 82.61% of its industry peers.

Profitability Insights: NYSE:SON

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:SON has earned a 5 out of 10:

• In the last couple of years the Profit Margin of SON has grown nicely.
• Looking at the Operating Margin, with a value of 9.93%, SON is in the better half of the industry, outperforming 60.87% of the companies in the same industry.
• SON's Operating Margin has improved in the last couple of years.
• 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.

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

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.