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, according to our Best Dividend Stocks screener. The company combines an attractive dividend yield with solid profitability and financial health, making it a noteworthy candidate for income-focused portfolios.

Key Dividend Strengths

• High Dividend Yield (14.18%) – CALM offers one of the highest yields in its industry, significantly above the sector average of 4.75% and the S&P500 average of 2.42%.
• Strong Dividend Growth (16.93% annual increase over 5 years) – The company has consistently raised its payout, demonstrating a commitment to returning capital to shareholders.
• Sustainable Payout Ratio (21.16%) – With a low payout ratio, CALM retains ample earnings to reinvest in operations while maintaining dividend stability.
• 10+ Years of Dividend Payments – A long track record of dividends adds confidence in the company’s reliability.

Profitability & Financial Health

• Exceptional Profit Margins – A 26.08% net profit margin and 32.33% operating margin place CALM among the top performers in its industry.
• Zero Debt – The company carries no debt, enhancing financial flexibility and reducing risk.
• Strong Liquidity – A current ratio of 3.86 and quick ratio of 3.26 indicate ample ability to meet short-term obligations.

Valuation Considerations

• Low P/E Ratio (4.90) – CALM trades at a discount compared to both industry peers and the broader market.
• Attractive Forward P/E (11.50) – Despite expected earnings contraction, the valuation remains reasonable.

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

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Disclaimer

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