Why SKYWORKS SOLUTIONS INC (NASDAQ:SWKS) is a Top Pick for Dividend Investors.

Our stock screener has singled out SKYWORKS SOLUTIONS INC (NASDAQ:SWKS) as a promising choice for dividend investors. SWKS not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

Analyzing Dividend Metrics

An integral part of ChartMill's stock analysis is the Dividend Rating, which spans from 0 to 10. This rating evaluates diverse dividend factors, including yield, historical data, growth, and sustainability. SWKS has received a 7 out of 10:

• With a Yearly Dividend Yield of 4.17%, SWKS is a good candidate for dividend investing.
• SWKS's Dividend Yield is rather good when compared to the industry average which is at 2.46. SWKS pays more dividend than 97.22% of the companies in the same industry.
• SWKS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
• On average, the dividend of SWKS grows each year by 11.77%, which is quite nice.
• SWKS has paid a dividend for at least 10 years, which is a reliable track record.
• As SWKS did not decrease their dividend in the past 5 years, we can say the dividend looks stable.

Deciphering SWKS's Health Rating

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. SWKS has earned a 8 out of 10:

• An Altman-Z score of 5.57 indicates that SWKS is not in any danger for bankruptcy at the moment.
• SWKS's Altman-Z score of 5.57 is fine compared to the rest of the industry. SWKS outperforms 64.81% of its industry peers.
• The Debt to FCF ratio of SWKS is 0.81, which is an excellent value as it means it would take SWKS, only 0.81 years of fcf income to pay off all of its debts.
• With an excellent Debt to FCF ratio value of 0.81, SWKS belongs to the best of the industry, outperforming 80.56% of the companies in the same industry.
• A Debt/Equity ratio of 0.16 indicates that SWKS is not too dependend on debt financing.
• A Current Ratio of 5.94 indicates that SWKS has no problem at all paying its short term obligations.
• SWKS has a better Current ratio (5.94) than 85.19% of its industry peers.
• A Quick Ratio of 4.73 indicates that SWKS has no problem at all paying its short term obligations.
• The Quick ratio of SWKS (4.73) is better than 83.33% of its industry peers.

Looking at the Profitability

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 SWKS, the assigned 6 is noteworthy for profitability:

• Looking at the Return On Assets, with a value of 6.32%, SWKS is in the better half of the industry, outperforming 69.44% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 8.23%, SWKS is in the better half of the industry, outperforming 62.04% of the companies in the same industry.
• Looking at the Return On Invested Capital, with a value of 7.09%, SWKS is in the better half of the industry, outperforming 73.15% of the companies in the same industry.
• The last Return On Invested Capital (7.09%) for SWKS is well below the 3 year average (12.13%), which needs to be investigated, but indicates that SWKS had better years and this may not be a problem.
• SWKS's Profit Margin of 13.02% is fine compared to the rest of the industry. SWKS outperforms 67.59% of its industry peers.
• SWKS has a Operating Margin of 17.19%. This is in the better half of the industry: SWKS outperforms 75.00% of its industry peers.

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

Check the latest full fundamental report of SWKS 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.