Is NYSE:VALE suited for dividend investing?

VALE SA-SP ADR (NYSE:VALE) was identified as a stock worth exploring by dividend investors by our stock screener. NYSE:VALE scores well on profitability, solvency and liquidity. At the same time it seems to pay a decent dividend. We'll explore this a bit deeper below.

A Closer Look at Dividend for NYSE:VALE

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:VALE has received a 7 out of 10:

• VALE has a Yearly Dividend Yield of 6.14%, which is a nice return.
• Compared to an average industry Dividend Yield of 3.36, VALE pays a better dividend. On top of this VALE pays more dividend than 94.81% of the companies listed in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.79, VALE pays a better dividend.
• The dividend of VALE is nicely growing with an annual growth rate of 52.04%!
• VALE has been paying a dividend for at least 10 years, so it has a reliable track record.

How We Gauge Health for NYSE:VALE

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:VALE has achieved a 5 out of 10:

• The Debt to FCF ratio of VALE is 2.46, which is a good value as it means it would take VALE, 2.46 years of fcf income to pay off all of its debts.
• VALE has a Debt to FCF ratio of 2.46. This is in the better half of the industry: VALE outperforms 79.22% of its industry peers.
• A Debt/Equity ratio of 0.34 indicates that VALE is not too dependend on debt financing.
• Even though the debt/equity ratio score it not favorable for VALE, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.

Profitability Insights: NYSE:VALE

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:VALE, the assigned 9 is noteworthy for profitability:

• Looking at the Return On Assets, with a value of 12.91%, VALE belongs to the top of the industry, outperforming 90.26% of the companies in the same industry.
• VALE has a better Return On Equity (30.45%) than 96.75% of its industry peers.
• VALE has a better Return On Invested Capital (15.64%) than 88.96% of its industry peers.
• VALE had an Average Return On Invested Capital over the past 3 years of 25.08%. This is significantly above the industry average of 9.25%.
• The last Return On Invested Capital (15.64%) for VALE is well below the 3 year average (25.08%), which needs to be investigated, but indicates that VALE had better years and this may not be a problem.
• The Profit Margin of VALE (27.58%) is better than 92.86% of its industry peers.
• VALE's Profit Margin has improved in the last couple of years.
• VALE's Operating Margin of 33.66% is amongst the best of the industry. VALE outperforms 89.61% of its industry peers.
• In the last couple of years the Operating Margin of VALE has grown nicely.
• VALE has a better Gross Margin (39.09%) than 81.17% of its industry peers.
• In the last couple of years the Gross Margin of VALE has grown nicely.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

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

Disclaimer

This article should in no way be interpreted as advice in any way. 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.