Uncovering Dividend Opportunities with NYSE:DGX.

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

Looking at the Dividend

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:DGX scores a 7 out of 10:

• DGX's Dividend Yield is rather good when compared to the industry average which is at 2.52. DGX pays more dividend than 93.97% of the companies in the same industry.
• The dividend of DGX is nicely growing with an annual growth rate of 7.50%!
• DGX has been paying a dividend for at least 10 years, so it has a reliable track record.
• DGX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• DGX pays out 38.64% of its income as dividend. This is a sustainable payout ratio.

Understanding NYSE:DGX's Health Score

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NYSE:DGX, the assigned 5 reflects its health status:

• DGX has an Altman-Z score of 3.21. This indicates that DGX is financially healthy and has little risk of bankruptcy at the moment.
• DGX's Altman-Z score of 3.21 is fine compared to the rest of the industry. DGX outperforms 74.14% of its industry peers.
• Looking at the Debt to FCF ratio, with a value of 5.05, DGX belongs to the top of the industry, outperforming 80.17% of the companies in the same industry.

Evaluating Profitability: NYSE:DGX

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:DGX, the assigned 8 is noteworthy for profitability:

• DGX has a better Return On Assets (6.02%) than 85.34% of its industry peers.
• DGX's Return On Equity of 12.63% is amongst the best of the industry. DGX outperforms 83.62% of its industry peers.
• DGX has a better Return On Invested Capital (8.44%) than 82.76% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for DGX is above the industry average of 8.68%.
• DGX has a Profit Margin of 8.95%. This is amongst the best in the industry. DGX outperforms 93.10% of its industry peers.
• With an excellent Operating Margin value of 13.68%, DGX belongs to the best of the industry, outperforming 90.52% of the companies in the same industry.
• DGX has a Gross Margin of 32.88%. This is in the better half of the industry: DGX outperforms 61.21% of its industry peers.

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

Disclaimer

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.