Zimmer Biomet Holdings Inc (NYSE:ZBH) - A Reliable Dividend Stock Worth Considering

Zimmer Biomet Holdings Inc (NYSE:ZBH) stands out as a strong candidate for dividend investors, according to our Best Dividend Stocks screener. The company combines a solid dividend track record with decent profitability and financial health, making it an appealing option for income-focused portfolios.

Dividend Strength

• Consistent Payouts: ZBH has paid dividends for at least 10 years without reductions, demonstrating reliability.
• Sustainable Payout Ratio: The company pays out just 21.28% of its income as dividends, well below levels that could threaten sustainability.
• Modest but Stable Growth: While the annual dividend growth rate is modest at 0.19%, earnings growth supports future increases.

Profitability & Valuation

• Strong Margins: ZBH boasts an Operating Margin of 19.59%, outperforming 92.55% of industry peers.
• Reasonable Valuation: With a P/E ratio of 11.97, the stock trades at a discount compared to both the industry and the S&P 500.

Financial Health

• Manageable Debt: A Debt-to-Equity ratio of 0.53 indicates moderate leverage, though liquidity metrics are in line with industry averages.
• Positive Cash Flow: The company generates consistent operating cash flow, reinforcing dividend sustainability.

For a deeper dive into ZBH’s fundamentals, review the full analysis report.

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Disclaimer

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