Is NYSE:IEX a Good Fit for Dividend Investing?

Last update: Oct 22, 2024

IDEX CORP (NYSE:IEX) was identified as a stock worth exploring by dividend investors by our stock screener. NYSE:IEX 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.

Deciphering NYSE:IEX's Dividend Rating

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NYSE:IEX has been assigned a 7 for dividend:

Compared to an average industry Dividend Yield of 1.58, IEX pays a bit more dividend than its industry peers.
On average, the dividend of IEX grows each year by 8.58%, which is quite nice.
IEX has paid a dividend for at least 10 years, which is a reliable track record.
IEX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
34.03% of the earnings are spent on dividend by IEX. This is a low number and sustainable payout ratio.
IEX's earnings are growing more than its dividend. This makes the dividend growth sustainable.

How do we evaluate the Health for NYSE:IEX?

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. NYSE:IEX has received a 9 out of 10:

An Altman-Z score of 6.36 indicates that IEX is not in any danger for bankruptcy at the moment.
IEX has a Altman-Z score of 6.36. This is amongst the best in the industry. IEX outperforms 83.72% of its industry peers.
The Debt to FCF ratio of IEX is 2.03, which is a good value as it means it would take IEX, 2.03 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.03, IEX belongs to the top of the industry, outperforming 82.17% of the companies in the same industry.
A Debt/Equity ratio of 0.36 indicates that IEX is not too dependend on debt financing.
IEX has a Current Ratio of 3.41. This indicates that IEX is financially healthy and has no problem in meeting its short term obligations.
IEX has a better Current ratio (3.41) than 81.40% of its industry peers.
IEX has a Quick Ratio of 2.52. This indicates that IEX is financially healthy and has no problem in meeting its short term obligations.
IEX has a better Quick ratio (2.52) than 82.17% of its industry peers.

What does the Profitability looks like for NYSE:IEX

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NYSE:IEX, the assigned 8 is a significant indicator of profitability:

IEX has a Return On Assets of 9.83%. This is amongst the best in the industry. IEX outperforms 80.62% of its industry peers.
Looking at the Return On Equity, with a value of 15.88%, IEX is in the better half of the industry, outperforming 72.09% of the companies in the same industry.
The Return On Invested Capital of IEX (10.17%) is better than 68.99% of its industry peers.
IEX has a better Profit Margin (18.19%) than 95.35% of its industry peers.
IEX's Profit Margin has improved in the last couple of years.
IEX has a Operating Margin of 22.08%. This is amongst the best in the industry. IEX outperforms 91.47% of its industry peers.
With an excellent Gross Margin value of 44.22%, IEX belongs to the best of the industry, outperforming 86.05% of the companies in the same industry.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

Our latest full fundamental report of IEX contains the most current fundamental analsysis.

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.