Why TIMKEN CO (NYSE:TKR) qualifies as a good dividend investing stock.

TIMKEN CO (NYSE:TKR) has caught the attention of dividend investors as a stock worth considering. TKR excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

Dividend Insights: TKR

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. TKR has been assigned a 7 for dividend:

• Compared to an average industry Dividend Yield of 2.04, TKR pays a better dividend. On top of this TKR pays more dividend than 82.03% of the companies listed in the same industry.
• TKR has been paying a dividend for at least 10 years, so it has 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 Examination for TKR

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. TKR has achieved 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.
• The Current ratio of TKR (3.07) is better than 75.78% 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 65.63% of the companies in the same industry.

Assessing Profitability for TKR

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For TKR, the assigned 5 is a significant indicator of profitability:

• With a decent Return On Equity value of 12.48%, TKR is doing good in the industry, outperforming 60.94% of the companies in the same industry.
• With a decent Profit Margin value of 7.71%, TKR is doing good in the industry, outperforming 62.50% of the companies in the same industry.
• With a decent Operating Margin value of 13.35%, TKR is doing good in the industry, outperforming 65.63% of the companies in the same industry.

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

For an up to date full fundamental analysis you can check the fundamental report of TKR

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.