Is QUEST DIAGNOSTICS INC (NYSE:DGX) a Good Fit for Dividend Investing?

QUEST DIAGNOSTICS INC (NYSE:DGX) was identified as a stock worth exploring by dividend investors by our stock screener. DGX scores well on profitability, solvency and liquidity. At the same time it seems to pay a decent dividend. We'll explore this a bit deeper below.

Assessing Dividend Metrics for DGX

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. DGX scores a 7 out of 10:

• DGX's Dividend Yield is rather good when compared to the industry average which is at 2.58. DGX pays more dividend than 91.18% of the companies in the same industry.
• The dividend of DGX is nicely growing with an annual growth rate of 6.92%!
• 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.
• 37.67% of the earnings are spent on dividend by DGX. This is a low number and sustainable payout ratio.
• The dividend of DGX is growing, but earnings are growing more, so the dividend growth is sustainable.

A Closer Look at Health for DGX

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. DGX has earned a 5 out of 10:

• DGX has an Altman-Z score of 3.17. This indicates that DGX is financially healthy and has little risk of bankruptcy at the moment.
• DGX's Altman-Z score of 3.17 is fine compared to the rest of the industry. DGX outperforms 69.61% of its industry peers.
• With a decent Debt to FCF ratio value of 5.55, DGX is doing good in the industry, outperforming 64.71% of the companies in the same industry.

Profitability Insights: 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, DGX has achieved a 7:

• The Return On Assets of DGX (5.65%) is better than 81.37% of its industry peers.
• Looking at the Return On Equity, with a value of 12.87%, DGX is in the better half of the industry, outperforming 77.45% of the companies in the same industry.
• DGX has a Return On Invested Capital of 7.86%. This is in the better half of the industry: DGX outperforms 72.55% of its industry peers.
• DGX has a Profit Margin of 8.78%. This is amongst the best in the industry. DGX outperforms 93.14% of its industry peers.
• The Operating Margin of DGX (14.35%) is better than 86.27% of its industry peers.
• Looking at the Gross Margin, with a value of 33.15%, DGX is in the better half of the industry, outperforming 61.76% of the companies in the same industry.

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

Keep in mind

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.