APA CORP (NASDAQ:APA) – A High-Yield Dividend Stock Worth Considering

APA CORP (NASDAQ:APA) stands out as a compelling choice for dividend investors, according to our Best Dividend Stocks screener. The company combines an attractive dividend yield with solid profitability and reasonable financial health, making it a candidate for income-focused portfolios.

Key Dividend Strengths

• High Dividend Yield: APA offers a 5.01% yield, well above the S&P 500 average of 2.40%. This makes it an appealing option for investors seeking steady income.
• Sustainable Payout Ratio: Only 36.11% of earnings are allocated to dividends, indicating room for continued payouts without straining finances.
• Reliable Track Record: The company has paid dividends for at least 10 years, demonstrating commitment to returning capital to shareholders.

Profitability and Growth

• Strong Returns: APA’s Return on Equity (18.75%) and Return on Invested Capital (15.67%) outperform most peers in the oil and gas sector.
• Healthy Margins: With an Operating Margin of 32.56%, the company maintains efficient operations despite industry volatility.
• Revenue Growth: Over the past year, revenue grew by 26.76%, reinforcing its ability to sustain dividends.

Financial Health Considerations

While APA’s Altman-Z score (1.35) suggests some bankruptcy risk, its low debt-to-FCF ratio (1.33) means it can cover obligations quickly. Liquidity metrics are weaker, but manageable given its cash flow strength.

For a deeper dive, review the full fundamental report on APA.

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Disclaimer

This is not investing advice. Always conduct your own research before making investment decisions.