Balancing Dividends and Fundamentals: The Case of NYSE:KT.

Our stock screener has spotted KT CORP-SP ADR (NYSE:KT) as a good dividend stock with solid fundamentals. NYSE:KT shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

Assessing Dividend Metrics for NYSE:KT

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:KT was assigned a score of 8 for dividend:

• KT has a Yearly Dividend Yield of 5.75%, which is a nice return.
• Compared to an average industry Dividend Yield of 5.02, KT pays a bit more dividend than its industry peers.
• Compared to an average S&P500 Dividend Yield of 2.41, KT pays a better dividend.
• On average, the dividend of KT grows each year by 11.46%, which is quite nice.
• KT has been paying a dividend for at least 10 years, so it has a reliable track record.
• As KT did not decrease their dividend in the past 5 years, we can say the dividend looks stable.

Looking at the Health

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:KT has received a 5 out of 10:

• KT's Altman-Z score of 1.46 is amongst the best of the industry. KT outperforms 82.86% of its industry peers.
• Looking at the Debt to FCF ratio, with a value of 8.57, KT is in the better half of the industry, outperforming 68.57% of the companies in the same industry.
• KT has a better Debt to Equity ratio (0.50) than 77.14% of its industry peers.

Profitability Insights: NYSE:KT

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:KT, the assigned 7 is noteworthy for profitability:

• The Return On Assets of KT (2.36%) is better than 65.71% of its industry peers.
• KT has a better Return On Equity (6.02%) than 62.86% of its industry peers.
• The Profit Margin of KT (3.82%) is better than 62.86% of its industry peers.
• KT's Profit Margin has improved in the last couple of years.
• KT's Operating Margin has improved in the last couple of years.
• Looking at the Gross Margin, with a value of 64.38%, KT is in the better half of the industry, outperforming 77.14% of the companies in the same industry.
• KT's Gross Margin has improved in the last couple of years.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.