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

Last update: Jan 10, 2025

Discover TORO CO (NYSE:TTC)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. NYSE:TTC showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.

Analyzing Dividend Metrics

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NYSE:TTC earns a 7 out of 10:

TTC's Dividend Yield is rather good when compared to the industry average which is at 1.71. TTC pays more dividend than 84.25% of the companies in the same industry.
On average, the dividend of TTC grows each year by 9.97%, which is quite nice.
TTC has been paying a dividend for at least 10 years, so it has a reliable track record.
TTC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
35.69% of the earnings are spent on dividend by TTC. This is a low number and sustainable payout ratio.

Health Analysis for NYSE:TTC

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:TTC has earned a 7 out of 10:

TTC has an Altman-Z score of 4.99. This indicates that TTC is financially healthy and has little risk of bankruptcy at the moment.
TTC has a Altman-Z score of 4.99. This is in the better half of the industry: TTC outperforms 74.02% of its industry peers.
TTC has a debt to FCF ratio of 1.98. This is a very positive value and a sign of high solvency as it would only need 1.98 years to pay back of all of its debts.
The Debt to FCF ratio of TTC (1.98) is better than 82.68% of its industry peers.
Even though the debt/equity ratio score it not favorable for TTC, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
TTC does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Looking at the Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:TTC was assigned a score of 8 for profitability:

TTC has a better Return On Assets (11.69%) than 85.04% of its industry peers.
The Return On Equity of TTC (26.99%) is better than 90.55% of its industry peers.
The Return On Invested Capital of TTC (16.78%) is better than 89.76% of its industry peers.
TTC had an Average Return On Invested Capital over the past 3 years of 17.81%. This is significantly above the industry average of 11.22%.
With a decent Profit Margin value of 9.14%, TTC is doing good in the industry, outperforming 67.72% of the companies in the same industry.
With a decent Operating Margin value of 11.63%, TTC is doing good in the industry, outperforming 60.63% of the companies in the same industry.
TTC's Operating 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 TTC for a complete fundamental analysis.

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.