Why NYSE:SQM qualifies as a good dividend investing stock.

Last update: Dec 25, 2023

QUIMICA Y MINERA CHIL-SP ADR (NYSE:SQM) was identified as a stock worth exploring by dividend investors by our stock screener. NYSE:SQM scores well on profitability, solvency and liquidity. At the same time it seems to pay a decent dividend. We'll explore this a bit deeper below.

A Closer Look at Dividend for 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 7 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 2.41. SQM pays more dividend than 100.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.46, 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.

Health Analysis for NYSE:SQM

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:SQM has earned a 8 out of 10:

SQM has an Altman-Z score of 5.33. This indicates that SQM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SQM (5.33) is better than 84.88% 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.
The Debt to FCF ratio of SQM (2.06) is better than 88.37% of its industry peers.
SQM has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
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.
With a decent Current ratio value of 2.48, SQM is doing good in the industry, outperforming 62.79% of the companies in the same industry.
The Quick ratio of SQM (1.81) is better than 65.12% of its industry peers.

Understanding NYSE:SQM's Profitability

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.
SQM has a better Return On Invested Capital (46.56%) than 100.00% of its industry peers.
SQM had an Average Return On Invested Capital over the past 3 years of 22.85%. This is significantly above the industry average of 11.39%.
The 3 year average ROIC (22.85%) for SQM is below the current ROIC(46.56%), indicating increased profibility in the last year.
SQM's Profit Margin of 35.24% is amongst the best of the industry. SQM outperforms 98.84% of its industry peers.
SQM's Profit Margin has improved in the last couple of years.
SQM has a better Operating Margin (49.99%) than 100.00% of its industry peers.
SQM's Operating Margin has improved in the last couple of years.
SQM has a Gross Margin of 51.46%. This is amongst the best in the industry. SQM outperforms 98.84% of its industry peers.
SQM's Gross Margin has improved in the last couple of years.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

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

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.