ROBERT HALF INC (NYSE:RHI) – A Dividend Stock Worth Considering

ROBERT HALF INC (NYSE:RHI) was identified as a strong dividend candidate by our stock screener. The company combines a high dividend yield with solid financial health and reasonable profitability, making it an interesting option for income-focused investors.

Key Dividend Strengths

• Attractive Yield: RHI offers a dividend yield of 5.42%, well above the industry average of 2.12% and the S&P 500 average of 2.39%.
• Reliable Track Record: The company has paid dividends for at least 10 years without reductions, demonstrating commitment to shareholders.
• Strong Dividend Growth: Dividends have grown at an average annual rate of 11.32% over the past five years.

Financial Health & Profitability

• No Debt: RHI has no outstanding debt, reducing financial risk and supporting dividend sustainability.
• Solid Liquidity: A current ratio of 1.65 indicates the company can meet short-term obligations comfortably.
• Positive Cash Flow: RHI has consistently generated positive operating cash flow over the past five years.
• Reasonable Valuation: While the P/E ratio of 22.25 is slightly high, forward earnings suggest a more reasonable valuation.

Potential Risks

• High Payout Ratio: RHI currently pays out 109.23% of its income as dividends, which may not be sustainable long-term without earnings growth.
• Recent Earnings Decline: EPS dropped by 40.12% in the past year, though analysts expect a rebound with 28.18% annual growth in the coming years.

For a deeper analysis, review the full fundamental report on RHI.

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Disclaimer

This is not investing advice. Always conduct your own research before making investment decisions.