Why NASDAQ:DOX is a Top Pick for Dividend Investors.

Last update: May 9, 2024

AMDOCS LTD (NASDAQ:DOX) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NASDAQ:DOX demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

A Closer Look at Dividend for NASDAQ:DOX

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. NASDAQ:DOX scores a 7 out of 10:

Compared to an average industry Dividend Yield of 2.85, DOX pays a better dividend. On top of this DOX pays more dividend than 92.86% of the companies listed 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 their dividend for at least 10 years, which is a reliable track record.
29.88% of the earnings are spent on dividend by DOX. This is a low number and sustainable payout ratio.

Evaluating Health: NASDAQ:DOX

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 6 out of 10:

DOX has a debt to FCF ratio of 0.82. This is a very positive value and a sign of high solvency as it would only need 0.82 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.82, DOX belongs to the best of the industry, outperforming 82.14% of the companies in the same industry.
DOX has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of DOX (0.18) is better than 67.86% of its industry peers.

Profitability Insights: NASDAQ:DOX

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 NASDAQ:DOX, the assigned 8 is noteworthy for profitability:

With an excellent Return On Assets value of 10.49%, DOX belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
DOX's Return On Equity of 19.07% is amongst the best of the industry. DOX outperforms 84.52% of its industry peers.
DOX has a Return On Invested Capital of 15.35%. This is amongst the best in the industry. DOX outperforms 89.29% 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 has a Profit Margin of 11.07%. This is amongst the best in the industry. DOX outperforms 82.14% of its industry peers.
DOX's Profit Margin has improved in the last couple of years.
The Operating Margin of DOX (14.83%) is better than 80.95% of its industry peers.
DOX's Operating Margin has improved in the last couple of years.

More Best Dividend stocks can be found 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.