Analyzing TIMKEN CO (NYSE:TKR)'s Dividend Potential.

TIMKEN CO (NYSE:TKR) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NYSE:TKR demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

Evaluating Dividend: NYSE:TKR

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. NYSE:TKR was assigned a score of 7 for dividend:

• TKR's Dividend Yield is rather good when compared to the industry average which is at 1.77. TKR pays more dividend than 82.54% of the companies in the same industry.
• TKR has paid a dividend for at least 10 years, which is a reliable track record.
• TKR has not decreased their dividend for at least 10 years, which is a reliable track record.
• 27.25% of the earnings are spent on dividend by TKR. This is a low number and sustainable payout ratio.
• The dividend of TKR is growing, but earnings are growing more, so the dividend growth is sustainable.

Health Assessment of NYSE:TKR

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. NYSE:TKR has earned a 5 out of 10:

• TKR has a Current Ratio of 3.07. This indicates that TKR is financially healthy and has no problem in meeting its short term obligations.
• TKR has a Current ratio of 3.07. This is in the better half of the industry: TKR outperforms 75.40% of its industry peers.
• Looking at the Quick ratio, with a value of 1.61, TKR is in the better half of the industry, outperforming 65.87% of the companies in the same industry.

What does the Profitability looks like for NYSE:TKR

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:TKR was assigned a score of 5 for profitability:

• The Return On Equity of TKR (12.48%) is better than 61.11% of its industry peers.
• TKR has a Profit Margin of 7.71%. This is in the better half of the industry: TKR outperforms 63.49% of its industry peers.
• TKR has a better Operating Margin (13.35%) than 65.08% of its industry peers.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

Our latest full fundamental report of TKR 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.