Why NYSE:NVS is a Top Pick for Dividend Investors.

Last update: Aug 2, 2024

Our stock screener has spotted NOVARTIS AG-SPONSORED ADR (NYSE:NVS) as a good dividend stock with solid fundamentals. NYSE:NVS shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

Evaluating Dividend: 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 3.89. NVS pays more dividend than 94.33% of the companies in the same industry.
NVS's Dividend Yield is a higher than the S&P500 average which is at 2.29.
NVS has paid a dividend for at least 10 years, which is a reliable track record.
29.69% of the earnings are spent on dividend by NVS. This is a low number and sustainable payout ratio.
NVS's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Exploring NYSE:NVS's Health

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:NVS scores a 6 out of 10:

An Altman-Z score of 4.25 indicates that NVS is not in any danger for bankruptcy at the moment.
NVS's Altman-Z score of 4.25 is fine compared to the rest of the industry. NVS outperforms 77.84% of its industry peers.
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.
With an excellent Debt to FCF ratio value of 2.63, NVS belongs to the best of the industry, outperforming 91.24% of the companies in the same industry.
NVS has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
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 Analysis for NYSE:NVS

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:NVS, the assigned 8 is a significant indicator of profitability:

NVS has a Return On Assets of 18.59%. This is amongst the best in the industry. NVS outperforms 97.42% of its industry peers.
NVS's Return On Equity of 44.20% is amongst the best of the industry. NVS outperforms 94.85% of its industry peers.
The Return On Invested Capital of NVS (22.45%) is better than 97.42% of its industry peers.
The last Return On Invested Capital (22.45%) for NVS is above the 3 year average (11.23%), which is a sign of increasing profitability.
The Profit Margin of NVS (29.84%) is better than 94.85% of its industry peers.
In the last couple of years the Profit Margin of NVS has grown nicely.
The Operating Margin of NVS (27.87%) is better than 92.78% 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 74.29%, NVS is doing good in the industry, outperforming 79.90% of the companies in the same industry.

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