Analyzing NYSE:PXD's Dividend Potential.

Our stock screener has singled out PIONEER NATURAL RESOURCES CO (NYSE:PXD) as a promising choice for dividend investors. NYSE:PXD not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

Assessing Dividend Metrics for NYSE:PXD

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:PXD has received a 7 out of 10:

• PXD has a Yearly Dividend Yield of 6.85%, which is a nice return.
• Compared to an average industry Dividend Yield of 6.78, PXD pays a bit more dividend than its industry peers.
• Compared to an average S&P500 Dividend Yield of 2.72, PXD pays a better dividend.
• The dividend of PXD is nicely growing with an annual growth rate of 216.54%!
• PXD has been paying a dividend for at least 10 years, so it has a reliable track record.
• PXD has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.

Unpacking NYSE:PXD's Health Rating

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:PXD, the assigned 6 reflects its health status:

• An Altman-Z score of 4.07 indicates that PXD is not in any danger for bankruptcy at the moment.
• With a decent Altman-Z score value of 4.07, PXD is doing good in the industry, outperforming 78.90% of the companies in the same industry.
• PXD has a debt to FCF ratio of 1.08. This is a very positive value and a sign of high solvency as it would only need 1.08 years to pay back of all of its debts.
• PXD's Debt to FCF ratio of 1.08 is amongst the best of the industry. PXD outperforms 80.73% of its industry peers.
• PXD has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
• PXD has a better Debt to Equity ratio (0.23) than 67.43% of its industry peers.

Understanding NYSE:PXD'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:PXD scores a 6 out of 10:

• PXD has a Return On Assets of 16.27%. This is in the better half of the industry: PXD outperforms 68.35% of its industry peers.
• PXD's Return On Equity of 26.25% is fine compared to the rest of the industry. PXD outperforms 60.09% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 18.40%, PXD is in the better half of the industry, outperforming 70.64% of the companies in the same industry.
• The last Return On Invested Capital (18.40%) for PXD is above the 3 year average (14.24%), which is a sign of increasing profitability.
• Looking at the Profit Margin, with a value of 28.33%, PXD is in the better half of the industry, outperforming 61.47% of the companies in the same industry.
• In the last couple of years the Profit Margin of PXD has grown nicely.
• PXD's Operating Margin has improved in the last couple of years.

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 PXD

Keep in mind

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.