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Why NYSE:MO provides a good dividend, while having solid fundamentals.

By Mill Chart

Last update: Mar 5, 2024

Take a closer look at ALTRIA GROUP INC (NYSE:MO), a stock of interest to dividend investors uncovered by our stock screener. NYSE:MO excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

Deciphering NYSE:MO'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. NYSE:MO has achieved a 7 out of 10:

  • With a Yearly Dividend Yield of 9.58%, MO is a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 5.82, MO pays a better dividend. On top of this MO pays more dividend than 90.00% of the companies listed in the same industry.
  • MO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
  • 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.

Assessing Health Metrics for NYSE:MO

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 NYSE:MO, the assigned 5 for health provides valuable insights:

  • An Altman-Z score of 3.61 indicates that MO is not in any danger for bankruptcy at the moment.
  • MO's Altman-Z score of 3.61 is amongst the best of the industry. MO outperforms 90.00% of its industry peers.
  • MO has a debt to FCF ratio of 2.89. This is a good value and a sign of high solvency as MO would need 2.89 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 2.89, MO belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.

Understanding NYSE:MO's Profitability

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:MO scores a 8 out of 10:

  • MO has a better Return On Assets (21.03%) than 90.00% of its industry peers.
  • MO has a better Return On Invested Capital (33.54%) than 90.00% of its industry peers.
  • MO had an Average Return On Invested Capital over the past 3 years of 31.71%. This is significantly above the industry average of 22.27%.
  • The 3 year average ROIC (31.71%) for MO is below the current ROIC(33.54%), indicating increased profibility in the last year.
  • The Profit Margin of MO (33.14%) is better than 100.00% of its industry peers.
  • In the last couple of years the Profit Margin of MO has grown nicely.
  • With an excellent Operating Margin value of 48.99%, MO belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
  • MO's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 58.14%, MO is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
  • In the last couple of years the Gross Margin of MO has grown nicely.

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

Check the latest full fundamental report of MO 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.

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ALTRIA GROUP INC

NYSE:MO (5/20/2024, 5:40:00 PM)

After market: 45.85 -0.05 (-0.11%)

45.9

-0.18 (-0.39%)

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