Why NYSE:AME qualifies as a good dividend investing stock.

Our stock screener has spotted AMETEK INC (NYSE:AME) as a good dividend stock with solid fundamentals. NYSE:AME shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

Understanding NYSE:AME's Dividend Score

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:AME scores a 7 out of 10:

• AME's Dividend Yield is rather good when compared to the industry average which is at 2.28. AME pays more dividend than 82.14% of the companies in the same industry.
• The dividend of AME is nicely growing with an annual growth rate of 12.17%!
• AME has been paying a dividend for at least 10 years, so it has a reliable track record.
• AME has not decreased their dividend for at least 10 years, which is a reliable track record.
• 18.01% of the earnings are spent on dividend by AME. This is a low number and sustainable payout ratio.
• The dividend of AME is growing, but earnings are growing more, so the dividend growth is sustainable.

Assessing Health for NYSE:AME

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:AME has earned a 6 out of 10:

• AME has an Altman-Z score of 5.78. This indicates that AME is financially healthy and has little risk of bankruptcy at the moment.
• AME has a better Altman-Z score (5.78) than 91.67% of its industry peers.
• The Debt to FCF ratio of AME is 1.82, which is an excellent value as it means it would take AME, only 1.82 years of fcf income to pay off all of its debts.
• AME has a Debt to FCF ratio of 1.82. This is amongst the best in the industry. AME outperforms 88.10% of its industry peers.
• AME has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
• AME does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

What does the Profitability looks like for NYSE:AME

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:AME has achieved a 9:

• AME's Return On Assets of 8.87% is amongst the best of the industry. AME outperforms 85.71% of its industry peers.
• The Return On Equity of AME (14.70%) is better than 85.71% of its industry peers.
• The Return On Invested Capital of AME (11.52%) is better than 85.71% of its industry peers.
• The 3 year average ROIC (11.01%) for AME is below the current ROIC(11.52%), indicating increased profibility in the last year.
• AME has a better Profit Margin (19.57%) than 97.62% of its industry peers.
• In the last couple of years the Profit Margin of AME has grown nicely.
• AME has a Operating Margin of 25.95%. This is amongst the best in the industry. AME outperforms 98.81% of its industry peers.
• In the last couple of years the Operating Margin of AME has grown nicely.
• Looking at the Gross Margin, with a value of 36.08%, AME belongs to the top of the industry, outperforming 82.14% of the companies in the same industry.

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

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

Keep in mind

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.