Is NASDAQ:DOX suited for dividend investing?

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

Understanding NASDAQ:DOX's Dividend Score

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:

• DOX's Dividend Yield is rather good when compared to the industry average which is at 2.51. DOX pays more dividend than 92.86% of the companies in the same industry.
• On average, the dividend of DOX grows each year by 12.15%, which is quite nice.
• DOX has been paying a dividend for at least 10 years, so it has a reliable track record.
• DOX has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• DOX pays out 29.88% of its income as dividend. This is a sustainable payout ratio.

How We Gauge Health for NASDAQ:DOX

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:DOX has achieved a 6 out of 10:

• 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.
• The Debt to FCF ratio of DOX (0.82) is better than 82.14% of its industry peers.
• DOX has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
• Looking at the Debt to Equity ratio, with a value of 0.18, DOX is in the better half of the industry, outperforming 66.67% of the companies in the same industry.

A Closer Look at Profitability for NASDAQ:DOX

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:DOX has achieved a 8:

• With an excellent Return On Assets value of 10.49%, DOX belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
• DOX's Return On Equity of 19.07% is amongst the best of the industry. DOX outperforms 84.52% of its industry peers.
• DOX's Return On Invested Capital of 15.35% is amongst the best of the industry. DOX outperforms 89.29% of its industry peers.
• The 3 year average ROIC (10.98%) for DOX is below the current ROIC(15.35%), indicating increased profibility in the last year.
• DOX's Profit Margin of 11.07% is amongst the best of the industry. DOX outperforms 82.14% of its industry peers.
• In the last couple of years the Profit Margin of DOX has grown nicely.
• DOX has a Operating Margin of 14.83%. This is amongst the best in the industry. DOX outperforms 80.95% of its industry peers.
• In the last couple of years the Operating Margin of DOX has grown nicely.

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

Our latest full fundamental report of DOX contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.