Is NYSE:NVS a Good Fit for Dividend Investing?

Last update: May 7, 2024

NOVARTIS AG-SPONSORED ADR (NYSE:NVS) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NYSE:NVS demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

Dividend Assessment of NYSE:NVS

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. NYSE:NVS has achieved a 7 out of 10:

NVS's Dividend Yield is rather good when compared to the industry average which is at 4.19. NVS pays more dividend than 95.38% of the companies in the same industry.
NVS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
NVS has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of NVS is growing, but earnings are growing more, so the dividend growth is sustainable.

What does the Health looks like for NYSE:NVS

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. NYSE:NVS has achieved a 7 out of 10:

NVS has an Altman-Z score of 4.05. This indicates that NVS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of NVS (4.05) is better than 78.97% of its industry peers.
NVS has a debt to FCF ratio of 2.25. This is a good value and a sign of high solvency as NVS would need 2.25 years to pay back of all of its debts.
NVS has a Debt to FCF ratio of 2.25. This is amongst the best in the industry. NVS outperforms 93.85% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that NVS is not too dependend on debt financing.
Although NVS does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
The current and quick ratio evaluation for NVS 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.

Profitability Insights: NYSE:NVS

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. NYSE:NVS has earned a 8 out of 10:

With an excellent Return On Assets value of 17.15%, NVS belongs to the best of the industry, outperforming 97.44% of the companies in the same industry.
Looking at the Return On Equity, with a value of 36.73%, NVS belongs to the top of the industry, outperforming 95.90% of the companies in the same industry.
NVS has a Return On Invested Capital of 19.33%. This is amongst the best in the industry. NVS outperforms 95.90% of its industry peers.
The last Return On Invested Capital (19.33%) for NVS is above the 3 year average (11.23%), which is a sign of increasing profitability.
With an excellent Profit Margin value of 28.63%, NVS belongs to the best of the industry, outperforming 95.38% of the companies in the same industry.
In the last couple of years the Profit Margin of NVS has grown nicely.
The Operating Margin of NVS (26.64%) is better than 93.33% of its industry peers.
In the last couple of years the Operating Margin of NVS has grown nicely.
With a decent Gross Margin value of 73.53%, NVS is doing good in the industry, outperforming 80.00% of the companies in the same industry.

More Best Dividend stocks can be found in our Best Dividend screener.

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

Keep in mind

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.