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Balancing Dividends and Fundamentals: The Case of NYSE:DGX.

By Mill Chart

Last update: Apr 10, 2024

Consider QUEST DIAGNOSTICS INC (NYSE:DGX) as a top pick for dividend investors, identified by our stock screening tool. NYSE:DGX shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.

Dividend Examination for NYSE:DGX

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:DGX has achieved a 7 out of 10:

  • Compared to an average industry Dividend Yield of 2.67, DGX pays a better dividend. On top of this DGX pays more dividend than 92.24% of the companies listed in the same industry.
  • On average, the dividend of DGX grows each year by 7.50%, which is quite nice.
  • DGX has paid a dividend for at least 10 years, which is a reliable track record.
  • DGX has not decreased their dividend for at least 10 years, which is a reliable track record.
  • 36.94% of the earnings are spent on dividend by DGX. This is a low number and sustainable payout ratio.

Health Assessment of NYSE:DGX

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. NYSE:DGX has received a 5 out of 10:

  • DGX has an Altman-Z score of 3.03. This indicates that DGX is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 3.03, DGX is in the better half of the industry, outperforming 74.14% of the companies in the same industry.
  • DGX has a better Debt to FCF ratio (5.45) than 68.10% of its industry peers.

Analyzing Profitability Metrics

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:DGX scores a 8 out of 10:

  • The Return On Assets of DGX (6.06%) is better than 85.34% of its industry peers.
  • The Return On Equity of DGX (13.48%) is better than 82.76% of its industry peers.
  • With an excellent Return On Invested Capital value of 8.26%, DGX belongs to the best of the industry, outperforming 80.17% of the companies in the same industry.
  • DGX had an Average Return On Invested Capital over the past 3 years of 11.72%. This is above the industry average of 8.67%.
  • DGX's Profit Margin of 9.19% is amongst the best of the industry. DGX outperforms 92.24% of its industry peers.
  • DGX has a Operating Margin of 13.91%. This is amongst the best in the industry. DGX outperforms 93.10% of its industry peers.
  • The Gross Margin of DGX (33.14%) is better than 60.34% of its industry peers.

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

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


Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.