Is NYSE:GSL suited for dividend investing?

Our stock screener has singled out GLOBAL SHIP LEASE INC-CL A (NYSE:GSL) as a promising choice for dividend investors. NYSE:GSL not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

Evaluating Dividend: NYSE:GSL

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. NYSE:GSL has been assigned a 7 for dividend:

• GSL has a Yearly Dividend Yield of 7.56%, which is a nice return.
• Compared to an average industry Dividend Yield of 7.91, GSL pays a better dividend. On top of this GSL pays more dividend than 86.21% of the companies listed in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.40, GSL pays a better dividend.
• The dividend of GSL is nicely growing with an annual growth rate of 36.74%!
• GSL has been paying a dividend for over 5 years, so it has already some track record.
• 21.29% of the earnings are spent on dividend by GSL. This is a low number and sustainable payout ratio.

Assessing Health for NYSE:GSL

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:GSL has received a 5 out of 10:

• GSL has a Altman-Z score of 1.60. This is in the better half of the industry: GSL outperforms 72.41% of its industry peers.
• GSL has a debt to FCF ratio of 3.50. This is a good value and a sign of high solvency as GSL would need 3.50 years to pay back of all of its debts.
• GSL has a better Debt to FCF ratio (3.50) than 82.76% of its industry peers.

Profitability Insights: NYSE:GSL

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. NYSE:GSL has earned a 9 out of 10:

• GSL has a better Return On Assets (13.58%) than 82.76% of its industry peers.
• With an excellent Return On Equity value of 24.90%, GSL belongs to the best of the industry, outperforming 82.76% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 15.12%, GSL belongs to the top of the industry, outperforming 96.55% of the companies in the same industry.
• GSL had an Average Return On Invested Capital over the past 3 years of 13.60%. This is significantly above the industry average of 6.94%.
• The last Return On Invested Capital (15.12%) for GSL is above the 3 year average (13.60%), which is a sign of increasing profitability.
• With an excellent Profit Margin value of 43.71%, GSL belongs to the best of the industry, outperforming 82.76% of the companies in the same industry.
• GSL's Profit Margin has improved in the last couple of years.
• Looking at the Operating Margin, with a value of 53.65%, GSL belongs to the top of the industry, outperforming 89.66% of the companies in the same industry.
• In the last couple of years the Operating Margin of GSL has grown nicely.
• The Gross Margin of GSL (69.95%) is better than 82.76% of its industry peers.

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

For an up to date full fundamental analysis you can check the fundamental report of GSL

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.