Is ROBERT HALF INC (NYSE:RHI) a Good Fit for Dividend Investing?

ROBERT HALF INC (NYSE:RHI) has caught the attention of dividend investors as a stock worth considering. RHI excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

ChartMill's Evaluation of Dividend

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. RHI has achieved a 8 out of 10:

• With a Yearly Dividend Yield of 4.28%, RHI is a good candidate for dividend investing.
• Compared to an average industry Dividend Yield of 1.99, RHI pays a better dividend. On top of this RHI pays more dividend than 97.50% of the companies listed in the same industry.
• RHI's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
• The dividend of RHI is nicely growing with an annual growth rate of 11.32%!
• RHI has paid a dividend for at least 10 years, which is a reliable track record.
• RHI has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• RHI's earnings are growing more than its dividend. This makes the dividend growth sustainable.

A Closer Look at Health for RHI

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 RHI, the assigned 8 reflects its health status:

• RHI has an Altman-Z score of 4.83. This indicates that RHI is financially healthy and has little risk of bankruptcy at the moment.
• RHI's Altman-Z score of 4.83 is amongst the best of the industry. RHI outperforms 85.00% of its industry peers.
• There is no outstanding debt for RHI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
• RHI's Current ratio of 1.66 is fine compared to the rest of the industry. RHI outperforms 63.75% of its industry peers.
• RHI has a better Quick ratio (1.66) than 66.25% of its industry peers.

How do we evaluate the Profitability for RHI?

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For RHI, the assigned 6 is a significant indicator of profitability:

• With a decent Return On Assets value of 8.81%, RHI is doing good in the industry, outperforming 77.50% of the companies in the same industry.
• RHI has a Return On Equity of 18.26%. This is in the better half of the industry: RHI outperforms 62.50% of its industry peers.
• With a decent Return On Invested Capital value of 10.90%, RHI is doing good in the industry, outperforming 67.50% 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 13.70%.
• The last Return On Invested Capital (10.90%) for RHI is well below the 3 year average (22.98%), which needs to be investigated, but indicates that RHI had better years and this may not be a problem.

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

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

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.