Is WESTLAKE CORP (NYSE:WLK) a Good Fit for Dividend Investing?

WESTLAKE CORP (NYSE:WLK) has caught the attention of dividend investors as a stock worth considering. WLK excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

Understanding WLK's Dividend Score

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. WLK scores a 7 out of 10:

• Compared to an average industry Dividend Yield of 3.80, WLK pays a bit more dividend than its industry peers.
• The dividend of WLK is nicely growing with an annual growth rate of 14.83%!
• WLK has been paying a dividend for at least 10 years, so it has a reliable track record.
• WLK has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• WLK's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Exploring WLK's Health

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. WLK has earned a 6 out of 10:

• The Altman-Z score of WLK (2.38) is better than 70.59% of its industry peers.
• WLK has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
• WLK has a better Debt to Equity ratio (0.43) than 67.06% of its industry peers.
• A Current Ratio of 2.80 indicates that WLK has no problem at all paying its short term obligations.
• The Current ratio of WLK (2.80) is better than 81.18% of its industry peers.
• WLK has a Quick Ratio of 2.04. This indicates that WLK is financially healthy and has no problem in meeting its short term obligations.
• Looking at the Quick ratio, with a value of 2.04, WLK belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.

A Closer Look at Profitability for WLK

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, WLK has achieved a 5:

• WLK's Return On Assets of 2.88% is fine compared to the rest of the industry. WLK outperforms 63.53% of its industry peers.
• WLK's Profit Margin of 4.93% is fine compared to the rest of the industry. WLK outperforms 65.88% of its industry peers.

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

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.