Exploring NYSE:SQM's dividend characteristics.

Last update: Sep 29, 2023

Discover QUIMICA Y MINERA CHIL-SP ADR (NYSE:SQM)—a stock that our stock screener has recognized as a solid dividend pick with strong fundamentals. NYSE:SQM showcases decent financial health and profitability while providing a sustainable dividend. We'll explore the specifics further.

Evaluating Dividend: NYSE:SQM

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:SQM has achieved a 8 out of 10:

With a Yearly Dividend Yield of 10.90%, SQM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.96, SQM pays a better dividend. On top of this SQM pays more dividend than 100.00% of the companies listed in the same industry.
SQM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.64.
On average, the dividend of SQM grows each year by 98.58%, which is quite nice.
SQM has paid a dividend for at least 10 years, which is a reliable track record.
SQM's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Looking at the Health

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:SQM, the assigned 8 for health provides valuable insights:

SQM has an Altman-Z score of 5.28. This indicates that SQM is financially healthy and has little risk of bankruptcy at the moment.
SQM's Altman-Z score of 5.28 is amongst the best of the industry. SQM outperforms 81.40% of its industry peers.
SQM has a debt to FCF ratio of 2.06. This is a good value and a sign of high solvency as SQM would need 2.06 years to pay back of all of its debts.
SQM has a Debt to FCF ratio of 2.06. This is amongst the best in the industry. SQM outperforms 90.70% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that SQM is not too dependend on debt financing.
Even though the debt/equity ratio score it not favorable for SQM, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
SQM has a Current Ratio of 2.48. This indicates that SQM is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of SQM (2.48) is better than 60.47% of its industry peers.
SQM has a better Quick ratio (1.81) than 68.60% of its industry peers.

Understanding NYSE:SQM's Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:SQM, the assigned 10 is noteworthy for profitability:

The Return On Assets of SQM (34.56%) is better than 100.00% of its industry peers.
SQM's Return On Equity of 71.10% is amongst the best of the industry. SQM outperforms 100.00% of its industry peers.
SQM has a better Return On Invested Capital (46.56%) than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for SQM is significantly above the industry average of 11.32%.
The last Return On Invested Capital (46.56%) for SQM is above the 3 year average (22.85%), which is a sign of increasing profitability.
The Profit Margin of SQM (35.24%) is better than 97.67% of its industry peers.
SQM's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 49.99%, SQM belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of SQM has grown nicely.
SQM's Gross Margin of 51.46% is amongst the best of the industry. SQM outperforms 100.00% of its industry peers.
SQM's Gross Margin has improved in the last couple of years.

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

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

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.