Is NASDAQ:DOX a Good Fit for Dividend Investing?

Last update: Jun 3, 2024

Unearth the potential of AMDOCS LTD (NASDAQ:DOX) as a dividend stock recommended by our stock screening tool. NASDAQ:DOX maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

Deciphering NASDAQ:DOX's Dividend Rating

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 2.86, DOX pays a better dividend. On top of this DOX pays more dividend than 92.77% of the companies listed 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 39.71% of its income as dividend. This is a sustainable payout ratio.

Deciphering NASDAQ:DOX's Health Rating

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:

An Altman-Z score of 4.64 indicates that DOX is not in any danger for bankruptcy at the moment.
DOX has a Altman-Z score of 4.64. This is in the better half of the industry: DOX outperforms 73.49% of its industry peers.
The Debt to FCF ratio of DOX is 1.01, which is an excellent value as it means it would take DOX, only 1.01 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.01, DOX is doing good in the industry, outperforming 77.11% 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 67.47% of its industry peers.
The current and quick ratio evaluation for DOX is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

Evaluating Profitability: 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:

Looking at the Return On Assets, with a value of 8.09%, DOX is in the better half of the industry, outperforming 78.31% of the companies in the same industry.
DOX's Return On Equity of 14.62% is fine compared to the rest of the industry. DOX outperforms 75.90% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.52%, DOX belongs to the top of the industry, outperforming 81.93% of the companies in the same industry.
The last Return On Invested Capital (12.52%) for DOX is above the 3 year average (10.98%), which is a sign of increasing profitability.
DOX has a better Profit Margin (10.43%) than 77.11% of its industry peers.
In the last couple of years the Profit Margin of DOX has grown nicely.
DOX has a Operating Margin of 14.92%. This is amongst the best in the industry. DOX outperforms 80.72% 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.

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

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.