Is NYSE:SQM a Good Fit for Dividend Investing?

Last update: Oct 9, 2023

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

Assessing Dividend for NYSE:SQM

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:SQM has received a 8 out of 10:

SQM has a Yearly Dividend Yield of 10.90%, which is a nice return.
SQM's Dividend Yield is rather good when compared to the industry average which is at 2.12. SQM pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.76, SQM pays a better dividend.
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.
The dividend of SQM is growing, but earnings are growing more, so the dividend growth is sustainable.

Health Insights: NYSE:SQM

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:SQM has received a 8 out of 10:

An Altman-Z score of 5.16 indicates that SQM is not in any danger for bankruptcy at the moment.
SQM's Altman-Z score of 5.16 is amongst the best of the industry. SQM outperforms 82.76% of its industry peers.
The Debt to FCF ratio of SQM is 2.06, which is a good value as it means it would take SQM, 2.06 years of fcf income to pay off all of its debts.
SQM has a better Debt to FCF ratio (2.06) than 90.80% 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.
A Current Ratio of 2.48 indicates that SQM has no problem at all paying its short term obligations.
SQM has a better Current ratio (2.48) than 60.92% of its industry peers.
SQM has a Quick ratio of 1.81. This is in the better half of the industry: SQM outperforms 68.97% of its industry peers.

Profitability Insights: NYSE:SQM

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:SQM scores a 10 out of 10:

SQM has a better Return On Assets (34.56%) than 100.00% of its industry peers.
SQM has a Return On Equity of 71.10%. This is amongst the best in the industry. SQM outperforms 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 46.56%, SQM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for SQM is significantly above the industry average of 11.31%.
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.
SQM's Profit Margin of 35.24% is amongst the best of the industry. SQM outperforms 97.70% of its industry peers.
SQM's Profit Margin has improved in the last couple of years.
SQM has a Operating Margin of 49.99%. This is amongst the best in the industry. SQM outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of SQM has grown nicely.
The Gross Margin of SQM (51.46%) is better than 100.00% of its industry peers.
In the last couple of years the Gross Margin of SQM has grown nicely.

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

Disclaimer

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.