CAL-MAINE FOODS INC (NASDAQ:CALM) – A High-Yield Dividend Stock with Strong Fundamentals

CAL-MAINE FOODS INC (NASDAQ:CALM) stands out as a compelling choice for dividend investors, offering an attractive yield while maintaining solid profitability and financial health. The company, a leading producer and distributor of shell eggs, has been identified by our dividend stock screener due to its strong dividend rating, sustainable payout ratio, and reliable track record.

Key Dividend Strengths

• High Dividend Yield: CALM currently offers a 14.41% dividend yield, significantly above both the industry average (4.58%) and the S&P 500 average (2.36%).
• Dividend Growth: Over the past five years, the company has increased its dividend at an annualized rate of 16.93%, demonstrating a commitment to rewarding shareholders.
• Sustainable Payout Ratio: Only 21.16% of earnings are allocated to dividends, indicating that payouts are well-covered and unlikely to face cuts in the near term.
• Long Dividend History: CALM has paid dividends consistently for at least 10 years, reinforcing its reliability for income-focused investors.

Profitability and Financial Health

• Exceptional Profitability: With a Profitability Rating of 10/10, CALM boasts strong margins, including a 32.33% Operating Margin and 26.08% Profit Margin, outperforming most peers in the Food Products industry.
• Strong Balance Sheet: The company carries no debt, contributing to a Health Rating of 9/10. Its Altman-Z score of 8.21 suggests minimal bankruptcy risk, and liquidity metrics (Current Ratio of 3.86, Quick Ratio of 3.26) are well above industry averages.

Valuation Considerations

CALM trades at a P/E ratio of 4.78, making it cheaper than 95.56% of its industry peers. While earnings are expected to decline in the near term, the stock’s low valuation and high yield may appeal to value-oriented dividend investors.

For a deeper dive into CALM’s financials, review the full fundamental report here.

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Disclaimer

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