Is NYSE:AME suited for dividend investing?

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

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 2.37. AME pays more dividend than 83.70% 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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• AME pays out 18.37% 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.

What does the Health looks like for NYSE:AME

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:AME, the assigned 6 for health provides valuable insights:

• An Altman-Z score of 5.89 indicates that AME is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 5.89, AME belongs to the best of the industry, outperforming 91.30% of the companies in the same industry.
• AME has a debt to FCF ratio of 1.59. This is a very positive value and a sign of high solvency as it would only need 1.59 years to pay back of all of its debts.
• Looking at the Debt to FCF ratio, with a value of 1.59, AME belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
• A Debt/Equity ratio of 0.20 indicates that AME is not too dependend on debt financing.
• 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.

Looking at the Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:AME, the assigned 9 is a significant indicator of profitability:

• AME has a better Return On Assets (9.00%) than 86.96% of its industry peers.
• AME has a better Return On Equity (14.40%) than 86.96% of its industry peers.
• AME has a better Return On Invested Capital (11.49%) than 88.04% of its industry peers.
• The last Return On Invested Capital (11.49%) for AME is above the 3 year average (11.01%), which is a sign of increasing profitability.
• Looking at the Profit Margin, with a value of 19.52%, AME belongs to the top of the industry, outperforming 98.91% of the companies in the same industry.
• In the last couple of years the Profit Margin of AME has grown nicely.
• AME's Operating Margin of 26.04% is amongst the best of the industry. AME outperforms 98.91% of its industry peers.
• AME's Operating Margin has improved in the last couple of years.
• AME has a Gross Margin of 36.08%. This is amongst the best in the industry. AME outperforms 84.78% of its industry peers.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

For an up to date full fundamental analysis you can check the fundamental report of AME

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.