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Is NYSE:RHI a Good Fit for Dividend Investing?

By Mill Chart

Last update: May 2, 2024

Our stock screener has spotted ROBERT HALF INC (NYSE:RHI) as a good dividend stock with solid fundamentals. NYSE:RHI 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:RHI

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:RHI was assigned a score of 8 for dividend:

  • Compared to an average industry Dividend Yield of 2.06, RHI pays a better dividend. On top of this RHI pays more dividend than 95.00% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 2.39, RHI pays a bit more dividend than the S&P500 average.
  • The dividend of RHI is nicely growing with an annual growth rate of 11.53%!
  • RHI has paid a dividend for at least 10 years, which is a reliable track record.
  • RHI has not decreased their dividend for at least 10 years, which is a reliable track record.
  • RHI's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Unpacking NYSE:RHI'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:RHI, the assigned 9 reflects its health status:

  • An Altman-Z score of 6.25 indicates that RHI is not in any danger for bankruptcy at the moment.
  • RHI has a better Altman-Z score (6.25) than 87.50% of its industry peers.
  • RHI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
  • Looking at the Current ratio, with a value of 1.86, RHI is in the better half of the industry, outperforming 76.25% of the companies in the same industry.
  • The Quick ratio of RHI (1.86) is better than 77.50% of its industry peers.

What does the Profitability looks like for NYSE:RHI

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:RHI scores a 7 out of 10:

  • RHI's Return On Assets of 13.66% is amongst the best of the industry. RHI outperforms 91.25% of its industry peers.
  • RHI's Return On Equity of 25.89% is amongst the best of the industry. RHI outperforms 82.50% of its industry peers.
  • With an excellent Return On Invested Capital value of 18.92%, RHI belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for RHI is significantly above the industry average of 12.24%.
  • The 3 year average ROIC (30.99%) for RHI is well above the current ROIC(18.92%). The reason for the recent decline needs to be investigated.
  • RHI's Profit Margin of 6.43% is fine compared to the rest of the industry. RHI outperforms 77.50% of its industry peers.

More Best Dividend stocks can be found in our Best Dividend screener.

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

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.