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Why NYSE:HRL qualifies as a good dividend investing stock.

By Mill Chart

Last update: Mar 14, 2024

HORMEL FOODS CORP (NYSE:HRL) has caught the attention of dividend investors as a stock worth considering. NYSE:HRL excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

Understanding NYSE:HRL'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. NYSE:HRL has been assigned a 7 for dividend:

  • HRL's Dividend Yield is rather good when compared to the industry average which is at 3.47. HRL pays more dividend than 80.43% of the companies in the same industry.
  • HRL's Dividend Yield is a higher than the S&P500 average which is at 2.40.
  • 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.
  • HRL's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Health Insights: NYSE:HRL

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:HRL scores a 5 out of 10:

  • An Altman-Z score of 4.03 indicates that HRL is not in any danger for bankruptcy at the moment.
  • HRL's Altman-Z score of 4.03 is amongst the best of the industry. HRL outperforms 81.52% of its industry peers.
  • The Debt to FCF ratio of HRL is 3.42, which is a good value as it means it would take HRL, 3.42 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of HRL (3.42) is better than 77.17% of its industry peers.
  • A Debt/Equity ratio of 0.30 indicates that HRL is not too dependend on debt financing.
  • The Debt to Equity ratio of HRL (0.30) is better than 61.96% of its industry peers.

Exploring NYSE:HRL's Profitability

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:HRL has earned a 5 out of 10:

  • With a decent Return On Assets value of 5.88%, HRL is doing good in the industry, outperforming 70.65% of the companies in the same industry.
  • HRL has a Return On Equity of 10.13%. This is in the better half of the industry: HRL outperforms 66.30% of its industry peers.
  • HRL has a better Return On Invested Capital (7.32%) than 76.09% of its industry peers.
  • HRL has a Profit Margin of 6.55%. This is in the better half of the industry: HRL outperforms 72.83% of its industry peers.
  • Looking at the Operating Margin, with a value of 8.67%, HRL is in the better half of the industry, outperforming 75.00% of the companies in the same industry.

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

Our latest full fundamental report of HRL contains the most current fundamental analsysis.

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.

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HORMEL FOODS CORP

NYSE:HRL (5/29/2024, 7:09:13 PM)

Premarket: 33.95 -0.15 (-0.44%)

34.1

-0.6 (-1.73%)

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