Why the dividend investor may take a look at CAL-MAINE FOODS INC (NASDAQ:CALM).

Our stock screener has spotted CAL-MAINE FOODS INC (NASDAQ:CALM) as a good dividend stock with solid fundamentals. CALM shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

A Closer Look at Dividend for CALM

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. CALM has been awarded a 7 for its dividend quality:

• With a Yearly Dividend Yield of 7.36%, CALM is a good candidate for dividend investing.
• Compared to an average industry Dividend Yield of 3.92, CALM pays a better dividend. On top of this CALM pays more dividend than 98.90% of the companies listed in the same industry.
• CALM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
• On average, the dividend of CALM grows each year by 16.93%, which is quite nice.
• CALM has paid a dividend for at least 10 years, which is a reliable track record.
• CALM pays out 22.63% of its income as dividend. This is a sustainable payout ratio.

How do we evaluate the Health for CALM?

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. CALM has achieved a 9 out of 10:

• An Altman-Z score of 9.82 indicates that CALM is not in any danger for bankruptcy at the moment.
• The Altman-Z score of CALM (9.82) is better than 96.70% of its industry peers.
• There is no outstanding debt for CALM. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
• A Current Ratio of 5.46 indicates that CALM has no problem at all paying its short term obligations.
• With an excellent Current ratio value of 5.46, CALM belongs to the best of the industry, outperforming 96.70% of the companies in the same industry.
• A Quick Ratio of 4.32 indicates that CALM has no problem at all paying its short term obligations.
• CALM's Quick ratio of 4.32 is amongst the best of the industry. CALM outperforms 96.70% of its industry peers.

How do we evaluate the Profitability for CALM?

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. CALM has earned a 9 out of 10:

• Looking at the Return On Assets, with a value of 25.26%, CALM belongs to the top of the industry, outperforming 97.80% of the companies in the same industry.
• The Return On Equity of CALM (30.75%) is better than 96.70% of its industry peers.
• CALM's Return On Invested Capital of 25.48% is amongst the best of the industry. CALM outperforms 97.80% of its industry peers.
• CALM had an Average Return On Invested Capital over the past 3 years of 20.77%. This is significantly above the industry average of 8.81%.
• The 3 year average ROIC (20.77%) for CALM is below the current ROIC(25.48%), indicating increased profibility in the last year.
• With an excellent Profit Margin value of 20.39%, CALM belongs to the best of the industry, outperforming 96.70% of the companies in the same industry.
• In the last couple of years the Profit Margin of CALM has grown nicely.
• Looking at the Operating Margin, with a value of 24.15%, CALM belongs to the top of the industry, outperforming 97.80% of the companies in the same industry.
• In the last couple of years the Operating Margin of CALM has grown nicely.
• The Gross Margin of CALM (32.68%) is better than 74.73% of its industry peers.
• CALM's Gross Margin has improved in the last couple of years.

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

Check the latest full fundamental report of CALM 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.