Analyzing NYSE:HRL's Dividend Potential.

Consider HORMEL FOODS CORP (NYSE:HRL) as a top pick for dividend investors, identified by our stock screening tool. NYSE:HRL shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.

Looking at the Dividend

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NYSE:HRL has been awarded a 7 for its dividend quality:

• Compared to an average industry Dividend Yield of 3.58, HRL pays a better dividend. On top of this HRL pays more dividend than 81.32% of the companies listed in the same industry.
• HRL's Dividend Yield is a higher than the S&P500 average which is at 2.44.
• The dividend of HRL is nicely growing with an annual growth rate of 8.23%!
• HRL has been paying a dividend for at least 10 years, so it has 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.

Assessing Health Metrics for NYSE:HRL

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:HRL has earned a 5 out of 10:

• HRL has an Altman-Z score of 4.08. This indicates that HRL is financially healthy and has little risk of bankruptcy at the moment.
• HRL has a Altman-Z score of 4.08. This is amongst the best in the industry. HRL outperforms 81.32% of its industry peers.
• HRL has a debt to FCF ratio of 3.42. This is a good value and a sign of high solvency as HRL would need 3.42 years to pay back of all of its debts.
• The Debt to FCF ratio of HRL (3.42) is better than 75.82% 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.

Profitability Assessment of NYSE:HRL

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NYSE:HRL scores a 5 out of 10:

• Looking at the Return On Assets, with a value of 5.88%, HRL is in the better half of the industry, outperforming 69.23% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 10.13%, HRL is in the better half of the industry, outperforming 65.93% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 7.32%, HRL is in the better half of the industry, outperforming 74.73% of the companies in the same industry.
• With a decent Profit Margin value of 6.55%, HRL is doing good in the industry, outperforming 71.43% of the companies in the same industry.
• With a decent Operating Margin value of 8.67%, HRL is doing good in the industry, outperforming 72.53% of the companies in the same industry.

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 HRL

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.