Exploring NYSE:NVS's dividend characteristics.

Consider NOVARTIS AG-SPONSORED ADR (NYSE:NVS) as a top pick for dividend investors, identified by our stock screening tool. NYSE:NVS shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.

Unpacking NYSE:NVS's Dividend Rating

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:NVS was assigned a score of 7 for dividend:

• Compared to an average industry Dividend Yield of 4.28, NVS pays a better dividend. On top of this NVS pays more dividend than 94.27% of the companies listed in the same industry.
• Compared to an average S&P500 Dividend Yield of 2.23, 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.
• NVS's earnings are growing more than its dividend. This makes the dividend growth sustainable.

ChartMill's Evaluation of 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 6 out of 10:

• An Altman-Z score of 4.05 indicates that NVS is not in any danger for bankruptcy at the moment.
• NVS has a better Altman-Z score (4.05) than 77.08% 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 has a Debt to FCF ratio of 2.63. This is amongst the best in the industry. NVS outperforms 93.23% of its industry peers.
• A Debt/Equity ratio of 0.47 indicates that NVS is not too dependend on debt financing.
• 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.

Profitability Assessment of 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 Return On Assets of 18.59%. This is amongst the best in the industry. NVS outperforms 98.44% of its industry peers.
• NVS has a Return On Equity of 44.20%. This is amongst the best in the industry. NVS outperforms 96.35% of its industry peers.
• The Return On Invested Capital of NVS (22.45%) is better than 96.88% of its industry peers.
• The 3 year average ROIC (11.23%) for NVS is below the current ROIC(22.45%), indicating increased profibility in the last year.
• The Profit Margin of NVS (29.84%) is better than 96.88% of its industry peers.
• NVS's Profit Margin has improved in the last couple of years.
• With an excellent Operating Margin value of 27.87%, NVS belongs to the best of the industry, outperforming 92.71% 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 belongs to the top of the industry, outperforming 81.77% of the companies in the same industry.

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

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.