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Is NYSE:DGX suited for dividend investing?

By Mill Chart

Last update: Feb 5, 2024

QUEST DIAGNOSTICS INC (NYSE:DGX) is a hidden gem unveiled by our stock screening tool, featuring a promising dividend outlook alongside solid fundamentals. NYSE:DGX demonstrates decent financial health and profitability while ensuring a sustainable dividend. Let's break it down further.

Analyzing Dividend Metrics

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:DGX was assigned a score of 7 for dividend:

  • DGX's Dividend Yield is rather good when compared to the industry average which is at 2.63. DGX pays more dividend than 92.11% of the companies in the same industry.
  • The dividend of DGX is nicely growing with an annual growth rate of 7.50%!
  • DGX has paid a dividend for at least 10 years, which is a reliable track record.
  • DGX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
  • 36.94% of the earnings are spent on dividend by DGX. This is a low number and sustainable payout ratio.

Evaluating Health: NYSE:DGX

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:DGX, the assigned 5 for health provides valuable insights:

  • Looking at the Altman-Z score, with a value of 2.99, DGX is in the better half of the industry, outperforming 71.93% of the companies in the same industry.
  • The Debt to FCF ratio of DGX (5.45) is better than 65.79% of its industry peers.

Profitability Assessment of NYSE:DGX

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:DGX has earned a 7 out of 10:

  • DGX has a Return On Assets of 6.06%. This is amongst the best in the industry. DGX outperforms 84.21% of its industry peers.
  • DGX's Return On Equity of 13.48% is fine compared to the rest of the industry. DGX outperforms 79.82% of its industry peers.
  • DGX's Return On Invested Capital of 8.37% is amongst the best of the industry. DGX outperforms 85.96% of its industry peers.
  • DGX's Profit Margin of 9.19% is amongst the best of the industry. DGX outperforms 92.11% of its industry peers.
  • The Operating Margin of DGX (14.11%) is better than 92.98% of its industry peers.

More Best Dividend stocks can be found in our Best Dividend screener.

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


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