Why NYSE:DGX provides a good dividend, while having solid fundamentals.

Last update: Feb 27, 2024

QUEST DIAGNOSTICS INC (NYSE:DGX) has caught the attention of dividend investors as a stock worth considering. NYSE:DGX excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

Understanding NYSE:DGX's Dividend

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:DGX earns a 7 out of 10:

Compared to an average industry Dividend Yield of 2.65, DGX pays a better dividend. On top of this DGX pays more dividend than 92.04% of the companies listed in the same industry.
On average, the dividend of DGX grows each year by 7.50%, which is quite nice.
DGX has been paying a dividend for at least 10 years, so it has a reliable track record.
DGX has not decreased their dividend for at least 10 years, which is a reliable track record.
36.94% of the earnings are spent on dividend by DGX. This is a low number and sustainable payout ratio.

What does the Health looks like for NYSE:DGX

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:DGX, the assigned 5 for health provides valuable insights:

DGX has a Altman-Z score of 2.99. This is in the better half of the industry: DGX outperforms 71.68% of its industry peers.
DGX has a Debt to FCF ratio of 5.45. This is in the better half of the industry: DGX outperforms 66.37% of its industry peers.

Profitability Examination for NYSE:DGX

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:DGX has achieved a 7:

DGX has a Return On Assets of 6.06%. This is amongst the best in the industry. DGX outperforms 85.84% of its industry peers.
The Return On Equity of DGX (13.48%) is better than 81.42% of its industry peers.
The Return On Invested Capital of DGX (8.37%) is better than 84.07% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DGX is above the industry average of 8.52%.
With an excellent Profit Margin value of 9.19%, DGX belongs to the best of the industry, outperforming 92.04% of the companies in the same industry.
The Operating Margin of DGX (14.11%) is better than 93.81% of its industry peers.

More Best Dividend stocks can be found in our Best Dividend screener.

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.