Analyzing NYSE:MO's Dividend Potential.

ALTRIA GROUP INC (NYSE:MO) was identified as a stock worth exploring by dividend investors by our stock screener. NYSE:MO scores well on profitability, solvency and liquidity. At the same time it seems to pay a decent dividend. We'll explore this a bit deeper below.

What does the Dividend looks like for NYSE:MO

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NYSE:MO has received a 8 out of 10:

• MO has a Yearly Dividend Yield of 9.31%, which is a nice return.
• MO's Dividend Yield is rather good when compared to the industry average which is at 5.41. MO pays more dividend than 90.00% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.45, MO pays a better dividend.
• On average, the dividend of MO grows each year by 7.90%, which is quite nice.
• MO has paid a dividend for at least 10 years, which is a reliable track record.
• MO has not decreased their dividend for at least 10 years, which is a reliable track record.

Health Insights: NYSE:MO

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:MO was assigned a score of 5 for health:

• MO has an Altman-Z score of 3.83. This indicates that MO is financially healthy and has little risk of bankruptcy at the moment.
• MO's Altman-Z score of 3.83 is amongst the best of the industry. MO outperforms 90.00% of its industry peers.
• The Debt to FCF ratio of MO is 2.96, which is a good value as it means it would take MO, 2.96 years of fcf income to pay off all of its debts.
• MO's Debt to FCF ratio of 2.96 is amongst the best of the industry. MO outperforms 100.00% of its industry peers.

How do we evaluate the Profitability for NYSE:MO?

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:MO, the assigned 8 is noteworthy for profitability:

• With an excellent Return On Assets value of 23.98%, MO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
• With an excellent Return On Invested Capital value of 33.11%, MO belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
• MO had an Average Return On Invested Capital over the past 3 years of 26.57%. This is above the industry average of 21.62%.
• The last Return On Invested Capital (33.11%) for MO is above the 3 year average (26.57%), which is a sign of increasing profitability.
• MO has a better Profit Margin (35.52%) than 100.00% of its industry peers.
• MO has a Operating Margin of 49.17%. This is amongst the best in the industry. MO outperforms 100.00% of its industry peers.
• In the last couple of years the Operating Margin of MO has grown nicely.
• Looking at the Gross Margin, with a value of 57.97%, MO is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
• MO's Gross Margin has improved in the last couple of years.

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

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

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.