Is NASDAQ:DOX a Good Fit for Dividend Investing?

Last update: Aug 7, 2024

AMDOCS LTD (NASDAQ:DOX) has caught the attention of dividend investors as a stock worth considering. NASDAQ:DOX excels in profitability, solvency, and liquidity, all while providing a decent dividend. Let's delve into the details.

Assessing Dividend for NASDAQ:DOX

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NASDAQ:DOX has achieved a 7 out of 10:

DOX's Dividend Yield is rather good when compared to the industry average which is at 2.70. DOX pays more dividend than 93.98% 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.
39.71% of the earnings are spent on dividend by DOX. This is a low number and sustainable payout ratio.

Exploring NASDAQ:DOX's Health

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:DOX has earned a 7 out of 10:

An Altman-Z score of 4.71 indicates that DOX is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.71, DOX is in the better half of the industry, outperforming 73.49% of the companies in the same industry.
DOX has a debt to FCF ratio of 1.01. This is a very positive value and a sign of high solvency as it would only need 1.01 years to pay back of all of its debts.
The Debt to FCF ratio of DOX (1.01) is better than 77.11% 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.
DOX's Debt to Equity ratio of 0.18 is fine compared to the rest of the industry. DOX outperforms 68.67% 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 7 is noteworthy for profitability:

DOX has a better Return On Assets (8.09%) than 79.52% of its industry peers.
The Return On Equity of DOX (14.62%) is better than 75.90% of its industry peers.
DOX's Return On Invested Capital of 12.52% is amongst the best of the industry. DOX outperforms 83.13% of its industry peers.
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.
With a decent Profit Margin value of 10.43%, DOX is doing good in the industry, outperforming 77.11% of the companies in the same industry.
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 83.13% of its industry peers.
In the last couple of years the Operating Margin of DOX has grown nicely.

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

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.