Exploring NASDAQ:DOX's dividend characteristics.

Take a closer look at AMDOCS LTD (NASDAQ:DOX), a stock of interest to dividend investors uncovered by our stock screener. NASDAQ:DOX excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

Deciphering NASDAQ:DOX's Dividend Rating

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NASDAQ:DOX scores a 7 out of 10:

• Compared to an average industry Dividend Yield of 2.34, DOX pays a better dividend. On top of this DOX pays more dividend than 92.86% of the companies listed in the same industry.
• The dividend of DOX is nicely growing with an annual growth rate of 12.15%!
• DOX has paid a dividend for at least 10 years, which is a reliable track record.
• DOX has not decreased their dividend for at least 10 years, which is a reliable track record.
• 29.88% of the earnings are spent on dividend by DOX. This is a low number and sustainable payout ratio.

Assessing Health Metrics for NASDAQ:DOX

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:DOX, the assigned 6 reflects its health status:

• The Debt to FCF ratio of DOX is 0.82, which is an excellent value as it means it would take DOX, only 0.82 years of fcf income to pay off all of its debts.
• Looking at the Debt to FCF ratio, with a value of 0.82, DOX belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
• A Debt/Equity ratio of 0.18 indicates that DOX is not too dependend on debt financing.
• With a decent Debt to Equity ratio value of 0.18, DOX is doing good in the industry, outperforming 65.48% of the companies in the same industry.

Profitability Assessment of NASDAQ:DOX

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. NASDAQ:DOX has earned a 8 out of 10:

• The Return On Assets of DOX (10.49%) is better than 83.33% of its industry peers.
• DOX has a better Return On Equity (19.07%) than 84.52% of its industry peers.
• DOX has a Return On Invested Capital of 15.35%. This is amongst the best in the industry. DOX outperforms 89.29% of its industry peers.
• The last Return On Invested Capital (15.35%) for DOX is above the 3 year average (10.98%), which is a sign of increasing profitability.
• DOX's Profit Margin of 11.07% is amongst the best of the industry. DOX outperforms 82.14% of its industry peers.
• DOX's Profit Margin has improved in the last couple of years.
• With a decent Operating Margin value of 14.83%, DOX is doing good in the industry, outperforming 79.76% of the companies in the same industry.
• In the last couple of years the Operating Margin of DOX has grown nicely.

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

Disclaimer

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.