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

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

Dividend Examination for NYSE:STLA

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:STLA was assigned a score of 7 for dividend:

• STLA has a Yearly Dividend Yield of 11.70%, which is a nice return.
• STLA's Dividend Yield is rather good when compared to the industry average which is at 3.92. STLA pays more dividend than 100.00% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.30, STLA pays a better dividend.
• The dividend of STLA is nicely growing with an annual growth rate of 386.64%!
• STLA has been paying a dividend for over 5 years, so it has already some track record.
• 34.98% of the earnings are spent on dividend by STLA. This is a low number and sustainable payout ratio.

Health Assessment of NYSE:STLA

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:STLA was assigned a score of 5 for health:

• Looking at the Altman-Z score, with a value of 1.92, STLA belongs to the top of the industry, outperforming 81.58% of the companies in the same industry.
• STLA has a better Debt to FCF ratio (13.40) than 84.21% of its industry peers.
• A Debt/Equity ratio of 0.26 indicates that STLA is not too dependend on debt financing.
• With a decent Debt to Equity ratio value of 0.26, STLA is doing good in the industry, outperforming 68.42% of the companies in the same industry.

Analyzing Profitability Metrics

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:STLA, the assigned 9 is noteworthy for profitability:

• With an excellent Return On Assets value of 6.43%, STLA belongs to the best of the industry, outperforming 92.11% of the companies in the same industry.
• STLA's Return On Equity of 16.27% is amongst the best of the industry. STLA outperforms 92.11% of its industry peers.
• STLA's Return On Invested Capital of 11.18% is amongst the best of the industry. STLA outperforms 94.74% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for STLA is significantly above the industry average of 9.10%.
• STLA has a Profit Margin of 7.55%. This is amongst the best in the industry. STLA outperforms 89.47% of its industry peers.
• STLA's Profit Margin has improved in the last couple of years.
• With an excellent Operating Margin value of 9.84%, STLA belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.
• STLA's Operating Margin has improved in the last couple of years.
• Looking at the Gross Margin, with a value of 18.11%, STLA is in the better half of the industry, outperforming 71.05% of the companies in the same industry.
• STLA's Gross Margin has improved in the last couple of years.

More Best Dividend stocks can be found in our Best Dividend screener.

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

Disclaimer

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.