Is NYSE:SQM suited for dividend investing?

Unearth the potential of QUIMICA Y MINERA CHIL-SP ADR (NYSE:SQM) as a dividend stock recommended by our stock screening tool. NYSE:SQM maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

Understanding NYSE:SQM's Dividend Score

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 2.24. 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 2.22.
• 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.

Looking at the Health

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NYSE:SQM was assigned a score of 7 for health:

• An Altman-Z score of 4.80 indicates that SQM is not in any danger for bankruptcy at the moment.
• SQM has a Altman-Z score of 4.80. This is amongst the best in the industry. SQM outperforms 85.39% 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 84.27% 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's Current ratio of 2.48 is fine compared to the rest of the industry. SQM outperforms 65.17% of its industry peers.
• SQM has a better Quick ratio (1.81) than 67.42% of its industry peers.

Assessing Profitability for 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:

• The Return On Assets of SQM (34.56%) is better 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 Return On Invested Capital of 46.56%. This is amongst the best in the industry. SQM outperforms 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 10.94%.
• 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 100.00% of its industry peers.
• In the last couple of years the Profit Margin of SQM has grown nicely.
• SQM has a Operating Margin of 49.99%. This is amongst the best in the industry. SQM outperforms 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 97.75% of its industry peers.
• In the last couple of years the Gross Margin of SQM has grown nicely.

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

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

Disclaimer

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.