Exploring NYSE:NVS's dividend characteristics.

Unearth the potential of NOVARTIS AG-SPONSORED ADR (NYSE:NVS) as a dividend stock recommended by our stock screening tool. NYSE:NVS maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

Looking at the Dividend

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. NYSE:NVS has received a 7 out of 10:

• Compared to an average industry Dividend Yield of 4.19, NVS pays a better dividend. On top of this NVS pays more dividend than 94.30% of the companies listed in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.39, NVS pays a bit more dividend than the S&P500 average.
• NVS has been paying a dividend for at least 10 years, so it has a reliable track record.
• 29.69% of the earnings are spent on dividend by NVS. This is a low number and sustainable payout ratio.
• The dividend of NVS is growing, but earnings are growing more, so the dividend growth is sustainable.

Looking at the 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. NYSE:NVS has earned a 7 out of 10:

• An Altman-Z score of 4.11 indicates that NVS is not in any danger for bankruptcy at the moment.
• With an excellent Altman-Z score value of 4.11, NVS belongs to the best of the industry, outperforming 80.31% of the companies in the same industry.
• NVS has a debt to FCF ratio of 2.63. This is a good value and a sign of high solvency as NVS would need 2.63 years to pay back of all of its debts.
• NVS has a better Debt to FCF ratio (2.63) than 91.71% of its industry peers.
• NVS has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
• NVS 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.

Exploring NYSE:NVS's Profitability

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:

• NVS has a better Return On Assets (18.59%) than 97.41% of its industry peers.
• NVS's Return On Equity of 44.20% is amongst the best of the industry. NVS outperforms 94.82% of its industry peers.
• NVS's Return On Invested Capital of 22.43% is amongst the best of the industry. NVS outperforms 97.41% of its industry peers.
• The last Return On Invested Capital (22.43%) for NVS is above the 3 year average (11.23%), which is a sign of increasing profitability.
• NVS has a Profit Margin of 29.84%. This is amongst the best in the industry. NVS outperforms 95.34% of its industry peers.
• NVS's Profit Margin has improved in the last couple of years.
• With an excellent Operating Margin value of 27.85%, NVS belongs to the best of the industry, outperforming 93.26% of the companies in the same industry.
• NVS's Operating Margin has improved in the last couple of years.
• Looking at the Gross Margin, with a value of 74.29%, NVS is in the better half of the industry, outperforming 79.79% of the companies in the same industry.

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

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

Disclaimer

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.