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

Last update: Nov 21, 2023

Consider VALE SA-SP ADR (NYSE:VALE) as a top pick for dividend investors, identified by our stock screening tool. NYSE:VALE shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.

Exploring NYSE:VALE'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:VALE has received a 7 out of 10:

With a Yearly Dividend Yield of 8.27%, VALE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.48, VALE pays a better dividend. On top of this VALE pays more dividend than 98.04% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.65, 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.
VALE pays out 37.33% of its income as dividend. This is a sustainable payout ratio.

Looking at the Health

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:VALE, the assigned 5 for health provides valuable insights:

The Debt to FCF ratio of VALE is 2.94, which is a good value as it means it would take VALE, 2.94 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of VALE (2.94) is better than 75.16% of its industry peers.
VALE has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.

How do we evaluate the Profitability for NYSE:VALE?

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:VALE has achieved a 9:

The Return On Assets of VALE (10.66%) is better than 87.58% of its industry peers.
With an excellent Return On Equity value of 24.99%, VALE belongs to the best of the industry, outperforming 93.46% of the companies in the same industry.
With an excellent Return On Invested Capital value of 15.82%, VALE belongs to the best of the industry, outperforming 91.50% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for VALE is significantly above the industry average of 9.45%.
The last Return On Invested Capital (15.82%) 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.
VALE's Profit Margin of 23.03% is amongst the best of the industry. VALE outperforms 90.85% of its industry peers.
In the last couple of years the Profit Margin of VALE has grown nicely.
The Operating Margin of VALE (34.20%) is better than 90.20% of its industry peers.
In the last couple of years the Operating Margin of VALE has grown nicely.
VALE's Gross Margin of 40.12% is amongst the best of the industry. VALE outperforms 81.70% 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.

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

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.