Why NYSE:SQM provides a good dividend, while having solid fundamentals.

Last update: Mar 22, 2024

Our stock screening tool has identified QUIMICA Y MINERA CHIL-SP ADR (NYSE:SQM) as a strong dividend contender with robust fundamentals. NYSE:SQM exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve into each aspect below.

Assessing Dividend for NYSE:SQM

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NYSE:SQM scores a 7 out of 10:

SQM has a Yearly Dividend Yield of 10.90%, which is a nice return.
Compared to an average industry Dividend Yield of 2.63, SQM pays a better dividend. On top of this SQM pays more dividend than 97.65% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, SQM pays a better dividend.
The dividend of SQM is nicely growing with an annual growth rate of 98.58%!
SQM has been paying a dividend for at least 10 years, so it has a reliable track record.

A Closer Look at Health for NYSE:SQM

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:SQM scores a 7 out of 10:

An Altman-Z score of 5.02 indicates that SQM is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.02, SQM belongs to the best of the industry, outperforming 83.53% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 2.06, SQM belongs to the top of the industry, outperforming 89.41% of the companies in the same industry.
A Debt/Equity ratio of 0.45 indicates that SQM is not too dependend on debt financing.
A Current Ratio of 2.48 indicates that SQM has no problem at all paying its short term obligations.
SQM's Current ratio of 2.48 is fine compared to the rest of the industry. SQM outperforms 64.71% of its industry peers.
SQM has a Quick ratio of 1.81. This is in the better half of the industry: SQM outperforms 69.41% of its industry peers.

What does the Profitability looks like for 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 9 out of 10:

SQM has a better Return On Assets (34.56%) than 100.00% of its industry peers.
With an excellent Return On Equity value of 71.10%, SQM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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.
The Average Return On Invested Capital over the past 3 years for SQM is significantly above the industry average of 11.58%.
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.
With an excellent Profit Margin value of 35.24%, SQM belongs to the best of the industry, outperforming 98.82% of the companies in the same industry.
SQM's Profit Margin has improved in the last couple of years.
The Operating Margin of SQM (49.99%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of SQM has grown nicely.
SQM has a better Gross Margin (51.46%) than 97.65% of its industry peers.
In the last couple of years the Gross Margin of SQM has grown nicely.

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.

Keep in mind

This article should in no way be interpreted as advice in any way. 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.