Is NYSE:SQM a Good Fit for Dividend Investing?

Last update: Aug 1, 2024

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.

How do we evaluate the Dividend for NYSE:SQM?

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:SQM was assigned a score of 7 for dividend:

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 2.29. SQM pays more dividend than 100.00% of the companies in the same industry.
SQM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.30.
On average, the dividend of SQM grows each year by 98.58%, which is quite nice.
SQM has been paying a dividend for at least 10 years, so it has a reliable track record.

Exploring NYSE:SQM's Health

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:

SQM has an Altman-Z score of 4.66. This indicates that SQM is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.66, SQM belongs to the best of the industry, outperforming 81.52% of the companies in the same industry.
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's Debt to FCF ratio of 2.06 is amongst the best of the industry. SQM outperforms 83.70% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that SQM is not too dependend on debt financing.
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.
SQM has a better Current ratio (2.48) than 66.30% of its industry peers.
With a decent Quick ratio value of 1.81, SQM is doing good in the industry, outperforming 68.48% of the companies in the same industry.

A Closer Look at Profitability for NYSE:SQM

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 9 is noteworthy for profitability:

With an excellent Return On Assets value of 34.56%, SQM belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
SQM has a better Return On Equity (71.10%) than 100.00% of its industry peers.
SQM's Return On Invested Capital of 46.56% is amongst the best of the industry. SQM outperforms 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 11.09%.
The 3 year average ROIC (22.85%) for SQM is below the current ROIC(46.56%), indicating increased profibility in the last year.
The Profit Margin of SQM (35.24%) is better than 98.91% of its industry peers.
In the last couple of years the Profit Margin of SQM has grown nicely.
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.
SQM's Operating Margin has improved in the last couple of years.
SQM has a better Gross Margin (51.46%) than 97.83% of its industry peers.
In the last couple of years the Gross Margin of SQM has grown nicely.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

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

Keep in mind

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