Analyzing NASDAQ:DOX's Dividend Potential.

Take a closer look at AMDOCS LTD (NASDAQ:DOX), a stock of interest to dividend investors uncovered by our stock screener. NASDAQ:DOX excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

Dividend Examination for NASDAQ:DOX

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NASDAQ:DOX has been awarded a 7 for its dividend quality:

• DOX's Dividend Yield is rather good when compared to the industry average which is at 2.85. DOX pays more dividend than 93.75% 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 paid a dividend for at least 10 years, which is 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 39.71% of its income as dividend. This is a sustainable payout ratio.

Exploring NASDAQ:DOX's Health

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:DOX has achieved a 8 out of 10:

• An Altman-Z score of 4.72 indicates that DOX is not in any danger for bankruptcy at the moment.
• The Altman-Z score of DOX (4.72) is better than 73.75% 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.
• DOX's Debt to FCF ratio of 1.01 is fine compared to the rest of the industry. DOX outperforms 76.25% of its industry peers.
• DOX has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
• Looking at the Debt to Equity ratio, with a value of 0.18, DOX is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
• 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.

Analyzing Profitability Metrics

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:DOX has earned a 8 out of 10:

• DOX has a Return On Assets of 8.09%. This is in the better half of the industry: DOX outperforms 78.75% of its industry peers.
• DOX's Return On Equity of 14.62% is fine compared to the rest of the industry. DOX outperforms 76.25% of its industry peers.
• The Return On Invested Capital of DOX (12.52%) is better than 82.50% of its industry peers.
• The 3 year average ROIC (10.98%) for DOX is below the current ROIC(12.52%), indicating increased profibility in the last year.
• The Profit Margin of DOX (10.43%) is better than 76.25% of its industry peers.
• DOX's Profit Margin has improved in the last couple of years.
• DOX has a Operating Margin of 14.92%. This is amongst the best in the industry. DOX outperforms 83.75% 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.

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.