Why ROBERT HALF INC (NYSE:RHI) is a Top Pick for Dividend Investors.

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

Assessing Dividend Metrics for RHI

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. RHI scores a 8 out of 10:

• RHI has a Yearly Dividend Yield of 5.36%, which is a nice return.
• RHI's Dividend Yield is rather good when compared to the industry average which is at 2.37. RHI pays more dividend than 96.34% of the companies in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.46, RHI pays a better dividend.
• The dividend of RHI is nicely growing with an annual growth rate of 11.32%!
• RHI has been paying a dividend for at least 10 years, so it has 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.

How We Gauge Health for RHI

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. RHI was assigned a score of 8 for health:

• RHI has an Altman-Z score of 4.52. This indicates that RHI is financially healthy and has little risk of bankruptcy at the moment.
• The Altman-Z score of RHI (4.52) is better than 80.49% 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.
• RHI's Current ratio of 1.66 is fine compared to the rest of the industry. RHI outperforms 65.85% of its industry peers.
• The Quick ratio of RHI (1.66) is better than 67.07% of its industry peers.

Profitability Analysis 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:

• RHI's Return On Assets of 8.81% is fine compared to the rest of the industry. RHI outperforms 78.05% of its industry peers.
• RHI's Return On Equity of 18.26% is fine compared to the rest of the industry. RHI outperforms 63.41% of its industry peers.
• The Return On Invested Capital of RHI (10.90%) is better than 67.07% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for RHI is significantly above the industry average of 13.48%.
• The 3 year average ROIC (22.98%) for RHI is well above the current ROIC(10.90%). The reason for the recent decline needs to be investigated.

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.

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.