Why STEVEN MADDEN LTD (NASDAQ:SHOO) is a Top Pick for Dividend Investors.

STEVEN MADDEN LTD (NASDAQ:SHOO) has caught the attention of dividend investors as a stock worth considering. SHOO excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

Dividend Analysis for SHOO

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. SHOO was assigned a score of 8 for dividend:

• With a Yearly Dividend Yield of 4.02%, SHOO is a good candidate for dividend investing.
• SHOO's Dividend Yield is rather good when compared to the industry average which is at 4.03. SHOO pays more dividend than 87.76% of the companies in the same industry.
• SHOO's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
• The dividend of SHOO is nicely growing with an annual growth rate of 7.91%!
• SHOO has been paying a dividend for over 5 years, so it has already some track record.
• 36.03% of the earnings are spent on dividend by SHOO. This is a low number and sustainable payout ratio.
• The dividend of SHOO is growing, but earnings are growing more, so the dividend growth is sustainable.

Analyzing Health Metrics

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. SHOO has earned a 9 out of 10:

• An Altman-Z score of 5.98 indicates that SHOO is not in any danger for bankruptcy at the moment.
• SHOO has a better Altman-Z score (5.98) than 91.84% of its industry peers.
• SHOO has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
• A Current Ratio of 2.16 indicates that SHOO has no problem at all paying its short term obligations.
• The Quick ratio of SHOO (1.54) is better than 75.51% of its industry peers.

How do we evaluate the Profitability for SHOO?

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of SHOO, the assigned 7 is noteworthy for profitability:

• SHOO's Return On Assets of 12.00% is amongst the best of the industry. SHOO outperforms 87.76% of its industry peers.
• SHOO has a Return On Equity of 19.98%. This is in the better half of the industry: SHOO outperforms 77.55% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 19.06%, SHOO belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
• The Average Return On Invested Capital over the past 3 years for SHOO is significantly above the industry average of 13.58%.
• SHOO has a better Profit Margin (7.42%) than 75.51% of its industry peers.
• The Operating Margin of SHOO (10.74%) is better than 75.51% of its industry peers.

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

Our latest full fundamental report of SHOO contains the most current fundamental analsysis.

Keep in mind

This article should in no way be interpreted as advice. 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.