BAKER HUGHES CO (NASDAQ:BKR) - A Reliable Dividend Stock Worth Considering

BAKER HUGHES CO (NASDAQ:BKR) was identified as a strong dividend candidate by our stock screener. The company combines a solid dividend profile with decent profitability and financial health, making it an interesting option for income-focused investors.

Dividend Strength

• Dividend Yield: BKR offers a yield of 2.46%, slightly above the S&P 500 average of 2.38%. While not the highest in the market, it remains competitive.
• Dividend Growth: The company has increased its dividend at an annual rate of 4.36% over the past years, demonstrating a commitment to rewarding shareholders.
• Track Record: BKR has paid dividends consistently for at least 10 years without reductions, indicating reliability.
• Payout Ratio: Only 29.22% of earnings are allocated to dividends, leaving ample room for reinvestment and future increases.

Profitability & Financial Health

• Strong Returns: BKR boasts a Return on Equity of 17.17% and a Return on Invested Capital of 11.56%, outperforming most peers in the Energy Equipment & Services industry.
• Improving Margins: Both Profit Margin (10.51%) and Operating Margin (12.74%) have shown positive trends.
• Solid Balance Sheet: The company maintains a Debt-to-Equity ratio of 0.35, well within manageable levels, and has reduced debt compared to the previous year.

Valuation & Growth

• Reasonable P/E: BKR trades at a P/E of 15.12, below the S&P 500 average, suggesting fair valuation.
• Earnings Growth: Recent EPS growth of 40% (past year) and an expected 8.14% annual growth highlight improving profitability.

For a deeper dive into BKR’s fundamentals, review the full report here.

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Disclaimer

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