Why SANOFI-ADR (NASDAQ:SNY) provides a good dividend, while having solid fundamentals.

Take a closer look at SANOFI-ADR (NASDAQ:SNY), a stock of interest to dividend investors uncovered by our stock screener. SNY excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

Understanding SNY's Dividend Score

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. SNY scores a 8 out of 10:

• With a Yearly Dividend Yield of 4.32%, SNY is a good candidate for dividend investing.
• Compared to an average industry Dividend Yield of 4.72, SNY pays a better dividend. On top of this SNY pays more dividend than 94.95% of the companies listed in the same industry.
• SNY's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
• SNY has been paying a dividend for at least 10 years, so it has a reliable track record.
• 39.72% of the earnings are spent on dividend by SNY. This is a low number and sustainable payout ratio.
• SNY's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Health Insights: SNY

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. SNY has received a 5 out of 10:

• SNY has a debt to FCF ratio of 3.04. This is a good value and a sign of high solvency as SNY would need 3.04 years to pay back of all of its debts.
• SNY's Debt to FCF ratio of 3.04 is amongst the best of the industry. SNY outperforms 91.41% of its industry peers.
• SNY has a Debt/Equity ratio of 0.17. This is a healthy value indicating a solid balance between debt and equity.

Evaluating Profitability: SNY

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. SNY has earned a 8 out of 10:

• With an excellent Return On Assets value of 9.00%, SNY belongs to the best of the industry, outperforming 92.93% of the companies in the same industry.
• SNY's Return On Equity of 15.37% is amongst the best of the industry. SNY outperforms 90.91% of its industry peers.
• With an excellent Return On Invested Capital value of 15.58%, SNY belongs to the best of the industry, outperforming 92.42% of the companies in the same industry.
• The 3 year average ROIC (7.46%) for SNY is below the current ROIC(15.58%), indicating increased profibility in the last year.
• With an excellent Profit Margin value of 12.97%, SNY belongs to the best of the industry, outperforming 89.39% of the companies in the same industry.
• SNY's Profit Margin has improved in the last couple of years.
• With an excellent Operating Margin value of 22.04%, SNY belongs to the best of the industry, outperforming 88.38% of the companies in the same industry.
• SNY's Operating Margin has improved in the last couple of years.
• SNY has a Gross Margin of 70.04%. This is in the better half of the industry: SNY outperforms 75.76% of its industry peers.

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

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

Disclaimer

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.