Analyzing NYSE:VALE's Dividend Potential.

Our stock screening tool has identified VALE SA-SP ADR (NYSE:VALE) as a strong dividend contender with robust fundamentals. NYSE:VALE exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve into each aspect below.

Dividend Analysis for NYSE:VALE

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NYSE:VALE earns a 7 out of 10:

• VALE has a Yearly Dividend Yield of 6.14%, which is a nice return.
• VALE's Dividend Yield is rather good when compared to the industry average which is at 3.56. VALE pays more dividend than 94.12% of the companies in the same industry.
• VALE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.76.
• The dividend of VALE is nicely growing with an annual growth rate of 52.04%!
• VALE has paid a dividend for at least 10 years, which is a reliable track record.

Health Analysis for NYSE:VALE

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 NYSE:VALE, the assigned 5 reflects its health status:

• The Debt to FCF ratio of VALE is 2.46, which is a good value as it means it would take VALE, 2.46 years of fcf income to pay off all of its debts.
• With a decent Debt to FCF ratio value of 2.46, VALE is doing good in the industry, outperforming 79.08% of the companies in the same industry.
• VALE has a Debt/Equity ratio of 0.34. This is a healthy value indicating a solid balance between debt and equity.
• Even though the debt/equity ratio score it not favorable for VALE, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.

What does the Profitability looks like for NYSE:VALE

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 NYSE:VALE, the assigned 9 is noteworthy for profitability:

• Looking at the Return On Assets, with a value of 12.91%, VALE belongs to the top of the industry, outperforming 90.20% of the companies in the same industry.
• VALE has a better Return On Equity (30.45%) than 96.08% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 15.64%, VALE belongs to the top of the industry, outperforming 87.58% of the companies in the same industry.
• Measured over the past 3 years, the Average Return On Invested Capital for VALE is significantly above the industry average of 9.39%.
• The last Return On Invested Capital (15.64%) for VALE is well below the 3 year average (25.08%), which needs to be investigated, but indicates that VALE had better years and this may not be a problem.
• VALE's Profit Margin of 27.58% is amongst the best of the industry. VALE outperforms 92.16% of its industry peers.
• In the last couple of years the Profit Margin of VALE has grown nicely.
• Looking at the Operating Margin, with a value of 33.66%, VALE belongs to the top of the industry, outperforming 89.54% of the companies in the same industry.
• VALE's Operating Margin has improved in the last couple of years.
• Looking at the Gross Margin, with a value of 39.09%, VALE belongs to the top of the industry, outperforming 80.39% of the companies in the same industry.
• VALE's Gross Margin has improved in the last couple of years.

More Best Dividend stocks can be found in our Best Dividend screener.

Check the latest full fundamental report of VALE for a complete fundamental analysis.

Disclaimer

This article should in no way be interpreted as advice in any way. 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.