Why NYSE:MMS qualifies as a good dividend investing stock.

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

Dividend Assessment of NYSE:MMS

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:MMS was assigned a score of 7 for dividend:

• MMS's Dividend Yield is rather good when compared to the industry average which is at 2.83. MMS pays more dividend than 90.12% of the companies in the same industry.
• MMS has been paying a dividend for at least 10 years, so it has a reliable track record.
• MMS has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
• MMS pays out 23.75% of its income as dividend. This is a sustainable payout ratio.
• MMS's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Evaluating Health: NYSE:MMS

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:MMS scores a 6 out of 10:

• MMS has an Altman-Z score of 3.37. This indicates that MMS is financially healthy and has little risk of bankruptcy at the moment.
• MMS has a debt to FCF ratio of 2.96. This is a good value and a sign of high solvency as MMS would need 2.96 years to pay back of all of its debts.
• MMS has a Debt to FCF ratio of 2.96. This is in the better half of the industry: MMS outperforms 61.73% of its industry peers.

Analyzing Profitability Metrics

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:MMS was assigned a score of 6 for profitability:

• With a decent Return On Assets value of 7.43%, MMS is doing good in the industry, outperforming 76.54% of the companies in the same industry.
• Looking at the Return On Equity, with a value of 16.65%, MMS belongs to the top of the industry, outperforming 80.25% of the companies in the same industry.
• With a decent Return On Invested Capital value of 11.20%, MMS is doing good in the industry, outperforming 79.01% of the companies in the same industry.
• The last Return On Invested Capital (11.20%) for MMS is above the 3 year average (8.80%), which is a sign of increasing profitability.
• Looking at the Profit Margin, with a value of 5.78%, MMS is in the better half of the industry, outperforming 67.90% of the companies in the same industry.
• MMS's Operating Margin of 9.21% is fine compared to the rest of the industry. MMS outperforms 70.37% of its industry peers.

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

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.