SANOFI-ADR (NASDAQ:SNY) - A Reliable Dividend Stock with Strong Fundamentals

SANOFI-ADR (NASDAQ:SNY) stands out as a compelling choice for dividend investors, offering a solid yield alongside healthy profitability and financial stability. The stock was identified through our Best Dividend screen, which targets companies with strong dividend ratings while maintaining decent financial health and profitability.

Key Dividend Strengths

• Attractive Yield: SNY currently offers a 4.26% dividend yield, outperforming both the industry average (4.15%) and the S&P 500 (2.38%).
• Sustainable Payout: The company maintains a low payout ratio of 39.72%, indicating that dividends are well-covered by earnings.
• Reliable Track Record: SNY has paid dividends for at least 10 years, demonstrating a commitment to returning capital to shareholders.
• Moderate Growth: While dividend growth has been modest at 4.34%, earnings growth supports future sustainability.

Profitability & Financial Health

• Strong Profit Margins: SNY boasts a 22.04% operating margin, ranking better than 89% of its pharmaceutical peers.
• Healthy Solvency: With a Debt-to-Equity ratio of 0.17, the company is not overly reliant on debt financing.
• Positive Cash Flow: SNY has consistently generated positive operating cash flow over the past five years.

Valuation Considerations

• Reasonable P/E Ratio: Trading at a P/E of 11.15, SNY appears undervalued compared to both industry and S&P 500 averages.
• Strong ROIC: The company’s Return on Invested Capital (15.58%) suggests efficient use of capital.

For a deeper dive into SNY’s financials, review the full fundamental report here.

Our Best Dividend Stocks screener provides more high-quality dividend picks.

Disclaimer

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