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QUEST DIAGNOSTICS INC (NYSE:DGX) - A Reliable Dividend Stock With Strong Fundamentals

By Mill Chart

Last update: Jul 17, 2025

QUEST DIAGNOSTICS INC (NYSE:DGX) stands out as a solid choice for dividend investors, according to our screening criteria. The company combines a strong dividend profile with healthy profitability and financial stability, making it worth a closer look for income-focused portfolios.

QUEST DIAGNOSTICS stock chart

Dividend Strength

  • Consistent Payouts: DGX has maintained dividend payments for at least 10 years without reductions, demonstrating reliability.
  • Growing Dividends: The company has increased its dividend at an average annual rate of 6.92%, outpacing inflation.
  • Sustainable Payout Ratio: With a payout ratio of 37.67%, DGX retains enough earnings to reinvest in growth while rewarding shareholders.
  • Competitive Yield: The current 1.87% yield is slightly below the S&P 500 average but better than 89% of its industry peers.

Profitability & Financial Health

  • Strong Margins: DGX’s 8.78% profit margin and 14.35% operating margin outperform most competitors.
  • Solid Returns: The company delivers a 12.87% return on equity and 7.86% return on invested capital, indicating efficient capital use.
  • Balanced Debt: While DGX carries some debt (Debt/Equity of 0.85), its Altman-Z score of 3.10 suggests low bankruptcy risk.

Valuation & Growth

  • Reasonable Valuation: Trading at 18.18x earnings, DGX is cheaper than 72% of its industry peers.
  • Steady Growth: Revenue has grown 9.38% over the past year, with earnings expected to increase 8.57% annually in the coming years.

For a deeper dive into DGX’s financials, review the full fundamental report here.

Our Best Dividend Stocks screener provides more high-quality dividend ideas.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should conduct your own analysis before making investment decisions.

QUEST DIAGNOSTICS INC

NYSE:DGX (8/8/2025, 8:04:00 PM)

After market: 176.96 0 (0%)

176.96

+2.69 (+1.54%)



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