Exploring NASDAQ:DOX's dividend characteristics.

AMDOCS LTD (NASDAQ:DOX) was identified as a stock worth exploring by dividend investors by our stock screener. NASDAQ:DOX 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.

Dividend Analysis for NASDAQ:DOX

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NASDAQ:DOX was assigned a score of 7 for dividend:

• DOX's Dividend Yield is rather good when compared to the industry average which is at 2.33. DOX pays more dividend than 92.77% of the companies in the same industry.
• The dividend of DOX is nicely growing with an annual growth rate of 12.15%!
• DOX has paid a dividend for at least 10 years, which is a reliable track record.
• DOX has not decreased their dividend for at least 10 years, which is a reliable track record.
• DOX pays out 30.26% of its income as dividend. This is a sustainable payout ratio.

Understanding NASDAQ:DOX's Health Score

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:DOX has received a 8 out of 10:

• DOX has an Altman-Z score of 5.10. This indicates that DOX is financially healthy and has little risk of bankruptcy at the moment.
• With a decent Altman-Z score value of 5.10, DOX is doing good in the industry, outperforming 73.49% of the companies in the same industry.
• The Debt to FCF ratio of DOX is 0.92, which is an excellent value as it means it would take DOX, only 0.92 years of fcf income to pay off all of its debts.
• DOX has a better Debt to FCF ratio (0.92) than 81.93% of its industry peers.
• A Debt/Equity ratio of 0.18 indicates that DOX is not too dependend on debt financing.
• DOX has a better Debt to Equity ratio (0.18) than 67.47% of its industry peers.
• DOX does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

A Closer Look at Profitability for NASDAQ:DOX

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, NASDAQ:DOX has achieved a 8:

• The Return On Assets of DOX (10.26%) is better than 84.34% of its industry peers.
• Looking at the Return On Equity, with a value of 18.71%, DOX belongs to the top of the industry, outperforming 80.72% of the companies in the same industry.
• The Return On Invested Capital of DOX (15.08%) is better than 86.75% of its industry peers.
• The 3 year average ROIC (10.98%) for DOX is below the current ROIC(15.08%), indicating increased profibility in the last year.
• The Profit Margin of DOX (10.85%) is better than 80.72% of its industry peers.
• DOX's Profit Margin has improved in the last couple of years.
• DOX has a better Operating Margin (14.81%) than 80.72% of its industry peers.
• DOX's Operating Margin has improved in the last couple of years.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

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

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.