Why BOOZ ALLEN HAMILTON HOLDINGS (NYSE:BAH) is a Top Pick for Dividend Investors.

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

Assessing Dividend Metrics for BAH

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. BAH has achieved a 7 out of 10:

• BAH's Dividend Yield is rather good when compared to the industry average which is at 1.99. BAH pays more dividend than 85.00% of the companies in the same industry.
• On average, the dividend of BAH grows each year by 19.21%, which is quite nice.
• BAH has been paying a dividend for at least 10 years, so it has a reliable track record.
• BAH has not decreased their dividend for at least 10 years, which is a reliable track record.
• 25.74% of the earnings are spent on dividend by BAH. This is a low number and sustainable payout ratio.

ChartMill's Evaluation of Health

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of BAH, the assigned 5 reflects its health status:

• BAH has an Altman-Z score of 5.24. This indicates that BAH is financially healthy and has little risk of bankruptcy at the moment.
• BAH has a better Altman-Z score (5.24) than 87.50% of its industry peers.
• BAH has a debt to FCF ratio of 4.00. This is a good value and a sign of high solvency as BAH would need 4.00 years to pay back of all of its debts.

Understanding BAH's Profitability

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, BAH has achieved a 8:

• BAH has a better Return On Assets (15.10%) than 90.00% of its industry peers.
• BAH's Return On Equity of 85.10% is amongst the best of the industry. BAH outperforms 93.75% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 23.56%, BAH belongs to the top of the industry, outperforming 88.75% of the companies in the same industry.
• The last Return On Invested Capital (23.56%) for BAH is above the 3 year average (13.75%), which is a sign of increasing profitability.
• With a decent Profit Margin value of 7.00%, BAH is doing good in the industry, outperforming 73.75% of the companies in the same industry.
• With a decent Operating Margin value of 11.08%, BAH is doing good in the industry, outperforming 78.75% of the companies in the same industry.
• In the last couple of years the Operating Margin of BAH has grown nicely.
• With a decent Gross Margin value of 54.71%, BAH is doing good in the industry, outperforming 63.75% of the companies in the same industry.

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

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.