Why the dividend investor may take a look at TIMKEN CO (NYSE:TKR).

TIMKEN CO (NYSE:TKR) was identified as a stock worth exploring by dividend investors by our stock screener. TKR scores well on profitability, solvency and liquidity. At the same time it seems to pay a decent dividend. We'll explore this a bit deeper below.

Analyzing Dividend Metrics

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. TKR scores a 7 out of 10:

• TKR's Dividend Yield is rather good when compared to the industry average which is at 2.00. TKR pays more dividend than 82.17% 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• 27.25% of the earnings are spent on dividend by TKR. This is a low number and sustainable payout ratio.
• TKR's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Deciphering TKR's Health Rating

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of TKR, the assigned 5 reflects its health status:

• A Current Ratio of 3.07 indicates that TKR has no problem at all paying its short term obligations.
• TKR has a Current ratio of 3.07. This is in the better half of the industry: TKR outperforms 75.97% 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 65.89% of the companies in the same industry.

A Closer Look at Profitability for TKR

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 TKR, the assigned 5 is noteworthy for profitability:

• The Return On Equity of TKR (12.48%) is better than 62.02% of its industry peers.
• TKR has a better Profit Margin (7.71%) than 63.57% of its industry peers.
• TKR has a better Operating Margin (13.35%) than 65.89% 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

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.