Is NYSE:XYL suited for dividend investing?

Our stock screening tool has identified XYLEM INC (NYSE:XYL) as a strong dividend contender with robust fundamentals. NYSE:XYL exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve into each aspect below.

Dividend Insights: NYSE:XYL

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:XYL has received a 7 out of 10:

• XYL's Dividend Yield is a higher than the industry average which is at 1.63.
• The dividend of XYL is nicely growing with an annual growth rate of 8.36%!
• XYL has paid a dividend for at least 10 years, which is a reliable track record.
• XYL has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• XYL pays out 39.33% of its income as dividend. This is a sustainable payout ratio.
• The dividend of XYL is growing, but earnings are growing more, so the dividend growth is sustainable.

How do we evaluate the Health for NYSE:XYL?

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:XYL has earned a 6 out of 10:

• XYL has an Altman-Z score of 4.40. This indicates that XYL is financially healthy and has little risk of bankruptcy at the moment.
• With a decent Altman-Z score value of 4.40, XYL is doing good in the industry, outperforming 70.63% of the companies in the same industry.
• XYL has a debt to FCF ratio of 2.17. This is a good value and a sign of high solvency as XYL would need 2.17 years to pay back of all of its debts.
• XYL's Debt to FCF ratio of 2.17 is amongst the best of the industry. XYL outperforms 80.16% of its industry peers.
• A Debt/Equity ratio of 0.19 indicates that XYL is not too dependend on debt financing.
• The Debt to Equity ratio of XYL (0.19) is better than 70.63% of its industry peers.

Exploring NYSE:XYL's Profitability

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:XYL, the assigned 6 is noteworthy for profitability:

• XYL has a better Profit Margin (10.39%) than 73.02% of its industry peers.
• XYL's Profit Margin has improved in the last couple of years.
• Looking at the Operating Margin, with a value of 12.51%, XYL is in the better half of the industry, outperforming 62.70% of the companies in the same industry.
• With a decent Gross Margin value of 37.51%, XYL is doing good in the industry, outperforming 66.67% of the companies in the same industry.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

Our latest full fundamental report of XYL contains the most current fundamental analsysis.

Keep in mind

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