Why NYSE:HRL provides a good dividend, while having solid fundamentals.

Discover HORMEL FOODS CORP (NYSE:HRL)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. NYSE:HRL showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.

How do we evaluate the Dividend for NYSE:HRL?

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:HRL has been assigned a 8 for dividend:

• Compared to an average industry Dividend Yield of 3.53, HRL pays a better dividend. On top of this HRL pays more dividend than 86.67% of the companies listed in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.48, HRL pays a better dividend.
• The dividend of HRL is nicely growing with an annual growth rate of 8.23%!
• HRL has paid a dividend for at least 10 years, which is a reliable track record.
• HRL has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• The dividend of HRL is growing, but earnings are growing more, so the dividend growth is sustainable.

Health Assessment of NYSE:HRL

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 NYSE:HRL, the assigned 5 for health provides valuable insights:

• An Altman-Z score of 3.72 indicates that HRL is not in any danger for bankruptcy at the moment.
• HRL has a better Altman-Z score (3.72) than 82.22% of its industry peers.
• HRL's Debt to FCF ratio of 4.26 is fine compared to the rest of the industry. HRL outperforms 75.56% of its industry peers.
• HRL has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
• The Debt to Equity ratio of HRL (0.30) is better than 61.11% of its industry peers.

Profitability Analysis for NYSE:HRL

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:HRL, the assigned 5 is a significant indicator of profitability:

• HRL has a Return On Assets of 5.90%. This is in the better half of the industry: HRL outperforms 70.00% of its industry peers.
• HRL's Return On Equity of 10.26% is fine compared to the rest of the industry. HRL outperforms 65.56% of its industry peers.
• The Return On Invested Capital of HRL (7.43%) is better than 72.22% of its industry peers.
• Looking at the Profit Margin, with a value of 6.55%, HRL is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
• HRL has a Operating Margin of 8.73%. This is in the better half of the industry: HRL outperforms 75.56% of its industry peers.

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Check the latest full fundamental report of HRL 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.