Why NYSE:AME is a Top Pick for Dividend Investors.

Consider AMETEK INC (NYSE:AME) as a top pick for dividend investors, identified by our stock screening tool. NYSE:AME shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.

Dividend Analysis for NYSE:AME

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:AME earns a 7 out of 10:

• AME's Dividend Yield is rather good when compared to the industry average which is at 2.23. AME pays more dividend than 82.35% of the companies in the same industry.
• On average, the dividend of AME grows each year by 12.17%, which is quite nice.
• AME has paid a dividend for at least 10 years, which is a reliable track record.
• AME has not decreased their dividend for at least 10 years, which is a reliable track record.
• AME pays out 18.01% of its income as dividend. This is a sustainable payout ratio.
• AME's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Assessing Health Metrics for NYSE:AME

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:AME has achieved a 6 out of 10:

• An Altman-Z score of 5.75 indicates that AME is not in any danger for bankruptcy at the moment.
• AME has a Altman-Z score of 5.75. This is amongst the best in the industry. AME outperforms 91.76% of its industry peers.
• AME has a debt to FCF ratio of 1.82. This is a very positive value and a sign of high solvency as it would only need 1.82 years to pay back of all of its debts.
• With an excellent Debt to FCF ratio value of 1.82, AME belongs to the best of the industry, outperforming 87.06% of the companies in the same industry.
• AME has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
• The current and quick ratio evaluation for AME is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Evaluating Profitability: NYSE:AME

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:AME was assigned a score of 9 for profitability:

• AME has a better Return On Assets (8.87%) than 85.88% of its industry peers.
• AME has a better Return On Equity (14.70%) than 84.71% of its industry peers.
• With an excellent Return On Invested Capital value of 11.52%, AME belongs to the best of the industry, outperforming 87.06% of the companies in the same industry.
• 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 Profit Margin of 19.57%. This is amongst the best in the industry. AME outperforms 97.65% of its industry peers.
• In the last couple of years the Profit Margin of AME has grown nicely.
• With an excellent Operating Margin value of 25.95%, AME belongs to the best of the industry, outperforming 98.82% of the companies in the same industry.
• In the last couple of years the Operating Margin of AME has grown nicely.
• AME has a Gross Margin of 36.08%. This is amongst the best in the industry. AME outperforms 83.53% of its industry peers.

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.

Disclaimer

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