Why NASDAQ:DOX provides a good dividend, while having solid fundamentals.

Last update: Mar 7, 2024

Discover AMDOCS LTD (NASDAQ:DOX)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. NASDAQ:DOX showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.

Understanding NASDAQ:DOX's Dividend Score

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. NASDAQ:DOX has been assigned a 7 for dividend:

DOX's Dividend Yield is rather good when compared to the industry average which is at 2.27. DOX pays more dividend than 92.86% of the companies in the same industry.
On average, the dividend of DOX grows each year by 12.15%, which is quite nice.
DOX has been paying a dividend for at least 10 years, so it has a reliable track record.
DOX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
DOX pays out 29.88% of its income as dividend. This is a sustainable payout ratio.

Evaluating Health: NASDAQ:DOX

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:DOX was assigned a score of 6 for health:

The Debt to FCF ratio of DOX is 0.82, which is an excellent value as it means it would take DOX, only 0.82 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of DOX (0.82) is better than 82.14% 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 63.10% of its industry peers.

Profitability Analysis for NASDAQ:DOX

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:DOX was assigned a score of 8 for profitability:

With an excellent Return On Assets value of 10.49%, DOX belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
Looking at the Return On Equity, with a value of 19.07%, DOX belongs to the top of the industry, outperforming 84.52% of the companies in the same industry.
DOX's Return On Invested Capital of 15.35% is amongst the best of the industry. DOX outperforms 90.48% of its industry peers.
The last Return On Invested Capital (15.35%) for DOX is above the 3 year average (10.98%), which is a sign of increasing profitability.
DOX's Profit Margin of 11.07% is amongst the best of the industry. DOX outperforms 82.14% of its industry peers.
DOX's Profit Margin has improved in the last couple of years.
DOX's Operating Margin of 14.83% is fine compared to the rest of the industry. DOX outperforms 79.76% of its industry peers.
In the last couple of years the Operating Margin of DOX has grown nicely.

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

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

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.