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

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

ChartMill's Evaluation of Dividend

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NYSE:DGX has been assigned a 7 for dividend:

• Compared to an average industry Dividend Yield of 2.67, DGX pays a better dividend. On top of this DGX pays more dividend than 92.24% of the companies listed in the same industry.
• The dividend of DGX is nicely growing with an annual growth rate of 7.50%!
• DGX has paid a dividend for at least 10 years, which is a reliable track record.
• DGX has not decreased their dividend for at least 10 years, which is a reliable track record.
• DGX pays out 36.94% of its income as dividend. This is a sustainable payout ratio.

Health Assessment of NYSE:DGX

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:DGX has earned a 5 out of 10:

• DGX has an Altman-Z score of 2.99. This indicates that DGX is financially healthy and has little risk of bankruptcy at the moment.
• DGX has a Altman-Z score of 2.99. This is in the better half of the industry: DGX outperforms 75.86% 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 69.83% of its industry peers.

A Closer Look at Profitability for NYSE:DGX

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:DGX has earned a 8 out of 10:

• DGX has a Return On Assets of 6.06%. This is amongst the best in the industry. DGX outperforms 84.48% of its industry peers.
• The Return On Equity of DGX (13.48%) is better than 81.90% of its industry peers.
• The Return On Invested Capital of DGX (8.26%) is better than 80.17% of its industry peers.
• DGX had an Average Return On Invested Capital over the past 3 years of 11.72%. This is above the industry average of 8.60%.
• DGX has a better Profit Margin (9.19%) than 92.24% of its industry peers.
• DGX's Operating Margin of 13.91% is amongst the best of the industry. DGX outperforms 93.10% of its industry peers.
• With a decent Gross Margin value of 33.14%, DGX is doing good in the industry, outperforming 60.34% of the companies in the same industry.

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

Our latest full fundamental report of DGX contains the most current fundamental analsysis.

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.