Why NASDAQ:CATY qualifies as a good dividend investing stock.

Unearth the potential of CATHAY GENERAL BANCORP (NASDAQ:CATY) as a dividend stock recommended by our stock screening tool. NASDAQ:CATY maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

Understanding NASDAQ:CATY's Dividend

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NASDAQ:CATY has been assigned a 7 for dividend:

• With a Yearly Dividend Yield of 4.08%, CATY is a good candidate for dividend investing.
• Compared to an average S&P500 Dividend Yield of 2.74, CATY pays a bit more dividend than the S&P500 average.
• On average, the dividend of CATY grows each year by 9.35%, which is quite nice.
• CATY has been paying a dividend for at least 10 years, so it has a reliable track record.
• CATY has not decreased their dividend for at least 10 years, which is a reliable track record.
• CATY pays out 25.70% of its income as dividend. This is a sustainable payout ratio.

Analyzing Health Metrics

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:CATY, the assigned 5 for health provides valuable insights:

• The Debt to FCF ratio of CATY is 0.28, which is an excellent value as it means it would take CATY, only 0.28 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of CATY (0.28) is better than 85.37% of its industry peers.
• CATY has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
• The Debt to Equity ratio of CATY (0.05) is better than 83.21% of its industry peers.

Profitability Insights: NASDAQ:CATY

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:CATY has achieved a 5:

• CATY has a Return On Assets of 1.68%. This is amongst the best in the industry. CATY outperforms 91.37% of its industry peers.
• CATY has a better Return On Equity (14.83%) than 82.01% of its industry peers.
• The Profit Margin of CATY (46.34%) is better than 97.36% of its industry peers.
• CATY's Profit Margin has improved in the last couple of years.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

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

Keep in mind

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.