TIMKEN CO (NYSE:TKR) - A Reliable Dividend Stock Worth Considering

TIMKEN CO (NYSE:TKR) was identified as a strong dividend candidate by our stock screener. The company combines a solid dividend profile with reasonable profitability and financial health, making it an interesting option for income-focused investors.

Dividend Strength

• Attractive Yield: TKR offers a dividend yield of 1.93%, slightly above the industry average of 1.83%.
• Reliable Track Record: The company has paid dividends for at least 10 years without reductions, demonstrating consistency.
• Sustainable Payout: Only 29.53% of earnings are allocated to dividends, indicating room for future growth.
• Modest Growth: Dividends have grown at an annual rate of 4.12%, supported by stable earnings.

Profitability & Financial Health

• Decent Margins: TKR maintains a 7.24% profit margin and a 12.79% operating margin, outperforming many peers.
• Strong Liquidity: A current ratio of 3.15 and quick ratio of 1.71 suggest good short-term financial flexibility.
• Moderate Debt: While the debt-to-equity ratio of 0.72 is higher than some competitors, solvency remains manageable.

Valuation

• Reasonable P/E: Trading at 12.79x earnings, TKR is cheaper than 86.72% of its industry peers.
• Positive Cash Flow: The company generates consistent free cash flow, supporting dividend sustainability.

For a deeper look, review the full fundamental report on TKR.

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Disclaimer

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