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.