Is MASCO CORP (NYSE:MAS) a Good Fit for Dividend Investing?

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

Unpacking MAS's Dividend Rating

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. MAS has achieved a 7 out of 10:

• Compared to an average industry Dividend Yield of 1.25, MAS pays a better dividend. On top of this MAS pays more dividend than 97.56% of the companies listed in the same industry.
• The dividend of MAS is nicely growing with an annual growth rate of 18.34%!
• MAS has been paying a dividend for at least 10 years, so it has a reliable track record.
• MAS has not decreased their dividend for at least 10 years, which is a reliable track record.
• 30.90% of the earnings are spent on dividend by MAS. This is a low number and sustainable payout ratio.

Deciphering MAS's Health Rating

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 MAS, the assigned 5 for health provides valuable insights:

• An Altman-Z score of 4.00 indicates that MAS is not in any danger for bankruptcy at the moment.
• The Altman-Z score of MAS (4.00) is better than 60.98% of its industry peers.
• MAS has a debt to FCF ratio of 3.25. This is a good value and a sign of high solvency as MAS would need 3.25 years to pay back of all of its debts.

Looking at the 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. MAS has earned a 7 out of 10:

• MAS has a Return On Assets of 16.39%. This is amongst the best in the industry. MAS outperforms 92.68% of its industry peers.
• MAS has a better Return On Invested Capital (30.11%) than 97.56% of its industry peers.
• Measured over the past 3 years, the Average Return On Invested Capital for MAS is significantly above the industry average of 13.22%.
• The 3 year average ROIC (29.73%) for MAS is below the current ROIC(30.11%), indicating increased profibility in the last year.
• MAS has a Profit Margin of 10.50%. This is in the better half of the industry: MAS outperforms 63.41% of its industry peers.
• With a decent Operating Margin value of 17.40%, MAS is doing good in the industry, outperforming 63.41% of the companies in the same industry.
• MAS has a Gross Margin of 36.16%. This is in the better half of the industry: MAS outperforms 60.98% of its industry peers.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

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

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.