Is NYSE:SQM a Good Fit for Dividend Investing?

Last update: Nov 4, 2024

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.

ChartMill's Evaluation of Dividend

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 2.22. 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 2.25.
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.

Health Assessment of 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 7 out of 10:

SQM has an Altman-Z score of 4.71. This indicates that SQM is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.71, SQM belongs to the best of the industry, outperforming 83.33% 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.
The Debt to FCF ratio of SQM (2.06) is better than 84.44% 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.
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 65.56% of its industry peers.
The Quick ratio of SQM (1.81) is better than 67.78% of its industry peers.

Looking at the 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 9 out of 10:

SQM has a better Return On Assets (34.56%) than 100.00% of its industry peers.
SQM has a better Return On Equity (71.10%) than 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.
The Average Return On Invested Capital over the past 3 years for SQM is significantly above the industry average of 10.94%.
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 100.00% of the companies in the same industry.
SQM's Profit Margin has improved in the last couple of years.
SQM's Operating Margin of 49.99% is amongst the best of the industry. SQM outperforms 100.00% of its industry peers.
In the last couple of years the Operating Margin of SQM has grown nicely.
Looking at the Gross Margin, with a value of 51.46%, SQM belongs to the top of the industry, outperforming 97.78% of the companies in the same industry.
SQM's Gross Margin has improved in the last couple of years.

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

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

Disclaimer

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.