Is NYSE:SQM a Good Fit for Dividend Investing?

Last update: Jul 10, 2024

Our stock screener has spotted QUIMICA Y MINERA CHIL-SP ADR (NYSE:SQM) as a good dividend stock with solid fundamentals. NYSE:SQM shows decent health and profitability. At the same time it gives a good and sustainable dividend. We'll dive into each aspect below.

Deciphering NYSE:SQM's Dividend Rating

ChartMill assigns a Dividend Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing various dividend elements, such as yield, historical performance, dividend growth, and sustainability. NYSE:SQM has been awarded a 7 for its dividend quality:

SQM has a Yearly Dividend Yield of 10.90%, which is a nice return.
Compared to an average industry Dividend Yield of 2.31, SQM pays a better dividend. On top of this SQM pays more dividend than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, SQM pays a better dividend.
The dividend of SQM is nicely growing with an annual growth rate of 98.58%!
SQM has paid a dividend for at least 10 years, which is a reliable track record.

Analyzing Health Metrics

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 7 out of 10:

An Altman-Z score of 4.74 indicates that SQM is not in any danger for bankruptcy at the moment.
SQM's Altman-Z score of 4.74 is amongst the best of the industry. SQM outperforms 82.56% 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.
Looking at the Debt to FCF ratio, with a value of 2.06, SQM belongs to the top of the industry, outperforming 83.72% of the companies in the same industry.
SQM has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
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.
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.
With a decent Quick ratio value of 1.81, SQM is doing good in the industry, outperforming 65.12% of the companies in the same industry.

Profitability Assessment of NYSE:SQM

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:SQM was assigned a score of 9 for profitability:

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.
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 11.18%.
The 3 year average ROIC (22.85%) for SQM is below the current ROIC(46.56%), indicating increased profibility in the last year.
Looking at the Profit Margin, with a value of 35.24%, SQM belongs to the top of the industry, outperforming 98.84% of the companies in the same industry.
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.
Looking at the Gross Margin, with a value of 51.46%, SQM belongs to the top of the industry, outperforming 97.67% of the companies in the same industry.
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.

Check the latest full fundamental report of SQM for a complete fundamental analysis.

Keep in mind

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.