Balancing Dividends and Fundamentals: The Case of BAKER HUGHES CO (NASDAQ:BKR).

Discover BAKER HUGHES CO (NASDAQ:BKR)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. BKR showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.

A Closer Look at Dividend for BKR

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. BKR earns a 7 out of 10:

• BKR's Dividend Yield is a higher than the industry average which is at 4.00.
• BKR has been paying a dividend for at least 10 years, so it has a reliable track record.
• BKR has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• BKR pays out 28.06% of its income as dividend. This is a sustainable payout ratio.
• BKR's earnings are growing more than its dividend. This makes the dividend growth sustainable.

How We Gauge Health for BKR

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. BKR was assigned a score of 5 for health:

• The Altman-Z score of BKR (2.15) is better than 63.33% of its industry peers.
• The Debt to FCF ratio of BKR is 2.93, which is a good value as it means it would take BKR, 2.93 years of fcf income to pay off all of its debts.
• With a decent Debt to FCF ratio value of 2.93, BKR is doing good in the industry, outperforming 61.67% of the companies in the same industry.
• A Debt/Equity ratio of 0.35 indicates that BKR is not too dependend on debt financing.

Evaluating Profitability: BKR

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. BKR has earned a 7 out of 10:

• BKR's Return On Assets of 7.77% is fine compared to the rest of the industry. BKR outperforms 68.33% of its industry peers.
• With an excellent Return On Equity value of 17.63%, BKR belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
• BKR's Return On Invested Capital of 11.32% is amongst the best of the industry. BKR outperforms 83.33% of its industry peers.
• The last Return On Invested Capital (11.32%) for BKR is above the 3 year average (9.18%), which is a sign of increasing profitability.
• BKR has a better Profit Margin (10.70%) than 71.67% of its industry peers.
• BKR's Profit Margin has improved in the last couple of years.
• BKR has a better Operating Margin (12.42%) than 63.33% of its industry peers.
• BKR's Operating Margin has improved in the last couple of years.
• In the last couple of years the Gross Margin of BKR has grown nicely.

More Best Dividend stocks can be found in our Best Dividend screener.

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

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.