Is NASDAQ:DOX suited for dividend investing?

AMDOCS LTD (NASDAQ:DOX) was identified as a stock worth exploring by dividend investors by our stock screener. NASDAQ:DOX scores well on profitability, solvency and liquidity. At the same time it seems to pay a decent dividend. We'll explore this a bit deeper below.

How do we evaluate the Dividend for NASDAQ:DOX?

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NASDAQ:DOX was assigned a score of 7 for dividend:

• DOX's Dividend Yield is rather good when compared to the industry average which is at 2.99. DOX pays more dividend than 93.90% 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 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.

Unpacking NASDAQ:DOX's Health Rating

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:

• DOX has an Altman-Z score of 4.78. This indicates that DOX is financially healthy and has little risk of bankruptcy at the moment.
• With a decent Altman-Z score value of 4.78, DOX is doing good in the industry, outperforming 74.39% of the companies in the same industry.
• 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 76.83% 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.
• With a decent Debt to Equity ratio value of 0.18, DOX is doing good in the industry, outperforming 67.07% of the companies in the same industry.

Understanding NASDAQ:DOX's Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:DOX scores a 7 out of 10:

• With a decent Return On Assets value of 8.09%, DOX is doing good in the industry, outperforming 78.05% of the companies in the same industry.
• With a decent Return On Equity value of 14.62%, DOX is doing good in the industry, outperforming 78.05% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 12.52%, DOX belongs to the top of the industry, outperforming 84.15% of the companies in the same industry.
• The 3 year average ROIC (10.98%) for DOX is below the current ROIC(12.52%), indicating increased profibility in the last year.
• DOX's Profit Margin of 10.43% is fine compared to the rest of the industry. DOX outperforms 74.39% of its industry peers.
• In the last couple of years the Profit Margin of DOX has grown nicely.
• DOX has a better Operating Margin (14.92%) than 82.93% of its industry peers.
• In the last couple of years the Operating Margin of DOX has grown nicely.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.