Is NYSE:NVS suited for dividend investing?

Last update: Nov 1, 2024

Take a closer look at NOVARTIS AG-SPONSORED ADR (NYSE:NVS), a stock of interest to dividend investors uncovered by our stock screener. NYSE:NVS excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

ChartMill's Evaluation of Dividend

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NYSE:NVS earns a 7 out of 10:

Compared to an average industry Dividend Yield of 4.14, 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 2.22, NVS pays a better dividend.
NVS has been paying a dividend for at least 10 years, so it has a reliable track record.
NVS pays out 29.69% of its income as dividend. This is a sustainable payout ratio.
The dividend of NVS is growing, but earnings are growing more, so the dividend growth is sustainable.

Understanding NYSE:NVS's Health Score

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 6 out of 10:

NVS has an Altman-Z score of 4.18. This indicates that NVS is financially healthy and has little risk of bankruptcy at the moment.
NVS's Altman-Z score of 4.18 is fine compared to the rest of the industry. NVS outperforms 76.68% 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.
NVS's Debt to FCF ratio of 2.63 is amongst the best of the industry. NVS outperforms 93.26% 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.
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.

Assessing Profitability for NYSE:NVS

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. NYSE:NVS scores a 9 out of 10:

NVS has a better Return On Assets (18.59%) than 98.45% of its industry peers.
With an excellent Return On Equity value of 44.20%, NVS belongs to the best of the industry, outperforming 95.85% of the companies in the same industry.
With an excellent Return On Invested Capital value of 22.45%, NVS belongs to the best of the industry, outperforming 96.89% of the companies in the same industry.
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 96.37% of its industry peers.
In the last couple of years the Profit Margin of NVS has grown nicely.
Looking at the Operating Margin, with a value of 27.87%, NVS belongs to the top of the industry, outperforming 93.26% of the companies in the same industry.
In the last couple of years the Operating Margin of NVS has grown nicely.
NVS's Gross Margin of 74.29% is amongst the best of the industry. NVS outperforms 82.38% of its industry peers.

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

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

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.